Earnings Release • Mar 6, 2014
Earnings Release
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Harris Palaondas– Investor Relations
07 March 2014
Photo taken from Mamaia Beach - Constanta
This Presentation of the Q4 2013 results of RomReal Ltd (the "Company") has been prepared for discussion purposes only and should be read in conjunction with the Q4 2013 Report which is filed on Oslo Axess through www.newsweb.no, and which can be viewed on the Company's website www.romreal.com
| Highlights in connection with the Q4 2013 results |
3 |
|---|---|
| Market Capitalisation Vs IFRS Net Asset Value |
4 |
| RomReal Properties per Q4 2013 | 5 |
| Sales of Plots | 6 |
| NAV movement in Q4 2013 | 7 |
| Financial highlights – IFRS |
8 |
| Romania Macro Statistics | 9 |
| RomReal shareholders | 10 |
| Main focus areas going forward | 11 |
| Contact details | 12 |
Corallia Development
Brasov Property
Bucharest Property
Under IFRS the NAV was EUR 0.5 (NOK 4.4) per share at the end of Q4 2013, a decrease of 8.6% compared to the end of Q3 2013 and adjusted to the new number of 41,367,783 shares following the 2.5:1 reverse stock split in December 2013. The 8.6% decrease in NAV is due to a 5.3% adjustment of the value of the property portfolio and 3.3% due to the foreign exchange movement.
The Company has commissioned an independent valuation by Knight Frank Romania, and reflected the results in the financial statements reported at the end of Q4 2013. This resulted in a 5.3% downwards adjustment of the value of its investment property, in line with the average market trend.
Pre-tax loss in Q4 2013 was EUR 2.25 million. Total assets at end of Q4 2013 were EUR 33.9 million compared to EUR 34.8 million at end of Q4 2012.
The reverse share split had as a result that the total number of shares in the Company were reduced from 103,419,456 to 41,367,783 and the nominal value of each share changed from €0.001 to €0.0025. The reverse share split did not change the value of the Company's share capital, which remains at €103,419.
One of the plots in the Company's land bank has obtained its Urban Certificate in order to be divided into smaller plots. The Company has sold one the divided plots and that was fully paid.
A flash estimate from the National Statistics Institute suggests Romania's GDP growth in 2013 reached 3.5% percent. The strong agricultural year together with high export demand, were the main growth drivers. Nevertheless, the aforementioned drivers keep the future growth prospects strongly linked to Europe's overall economic development.
| Plot name | Location | Size (m2) | |
|---|---|---|---|
| 1 Ovidiu Lakeside | Constanta North/Ovidiu | 61,433 | |
| 2 Badulescu plot | Constanta North/Ovidiu | 50,000 | |
| 3 Tatar Peninsula | Constanta North/Ovidiu | 9,965 | |
| 4 Ovidiu Town | Constanta North/Ovidiu | 4,641 | |
| 5 Ovidiu (Oasis) | Constanta North/Ovidiu | 25,527 | |
| 6 Centrepoint | Constanta North/Ovidiu | 122,350 | |
| 7 Gunaydin plot | Constanta North/Ovidiu | 15,000 | |
| 8 Balada Market | Central Constanta | 7,188 | |
| 9 Carrefour plot | Constanta | 15,000 | |
| 10 Morii Lake | Bucharest Sector 6 | 11,716 | |
| 11 Hospital plot | Bucharest Sector 5 | 13,263 | |
| 12 Brasov Plot | Central Brasov | 4,127 | |
| 13 Un-zoned land | Constanta | 865,062 | |
| 14 Mamaia North plot Mamaia | 56,167 | ||
| SUM | 1,261,439 | ||
For more information regarding the Properties of RomReal Ltd, please visit the Company's website www.romreal.com
| Asset base | Q4 2013 | Q3 2013 | ||||
|---|---|---|---|---|---|---|
| EUR '000 | EUR/share | NOK/share | EUR '000 | EUR/share | NOK/share | |
| Investment property | 29,301 | 0.71 | 5.90 | 30,953 | 0.75 | 6.04 |
| Inventories | 2,544 | 0.06 | 0.51 | 2,816 | 0.07 | 0.55 |
| Cash | 989 | 0.02 | 0.20 | 1,768 | 0.04 | 0.35 |
| Other assets/(liabilities) | (11,146) | (0.27) | (2.24) | (11,807) | (0.29) | (2.30) |
| Net asset value | 21,688 | 23,730 | ||||
| NAV/Share | 0.52 | 4.37 | 0.57* | 4.63* | ||
| Change in NAV | -8.6% | 5.5% |
*The total issued number of shares issued at end Q4 2013 was 41,367,783 compared to 103,419,456 in Q3 2013, due to the 2.5:1 reverse share split. The per-share figures for 3rd quarter 2013 have been calculated using the fully diluted number of shares for comparability reasons.
| EUR '000 | Q4 2013 | Q4 2012 | FY 2013 | FY 2012 |
|---|---|---|---|---|
| Operating Revenue | 116 | 188 | 399 | 429 |
| Operating Expenses | (447) | (227) | (1,112) | (1,391) |
| Other operating income/ (expense) ,net | (1,496) | (3,395) | (823) | (962) |
| Net financial income/(cost) | (421) | (1,184) | (1,144) | (1,896) |
| Pre-tax result | (2,248) | (4,618) | (2,680) | (4,992) |
| Result for the period | (2,215) | (4,160) | (2,613) | (4,391) |
| Total assets | 33,864 | 34,878 | 33,864 | 34,878 |
| Total liabilities | 12,179 | 12,404 | 12,179 | 12,404 |
| Total equity | 21,688 | 22,474 | 21,688 | 22,474 |
| Equity % | 64.2% | 64.4% | 64.2% | 64.4% |
| NAV per share (EUR) | 0.52 | 0.57 | 0.52 | 0.57 |
| Cash & Cash equivalents | 1,720 | 702 | 1,720 | 702 |
| SURNAME | FIRST NAME | HOLDING OF SHARES | % HOLDING |
|---|---|---|---|
| MGL INVESTMENTS LTD | 11,691,024 | 28.26% | |
| THORKILDSEN | KAY TØNNES | 5,415,756 | 13.09% |
| GRØNSKAG | KJETIL | 3,850,307 | 9.31% |
| BRANDEGGEN | LARS TORE | 1,704,599 | 4.12% |
| SAGA EIENDOM AS | 1,223,667 | 2.96% | |
| JONAS BJERG | 1,058,306 | 2.56% | |
| SPAR KAPITAL INVESTOR AS | 940,236 | 2.27% | |
| GAUSEN | JON | 859,861 | 2.08% |
| CARNEGIE INVESTMENT BANK DK BRANC | 851,692 | 2.06% | |
| THORKILDSEN INVEST AS | 829,478 | 2.01% | |
| HOEN | ANDERS MYSSEN | 689,557 | 1.67% |
| U-TURN VENTURES AS | 663,668 | 1.60% | |
| CLEARSTREAM BANKING S.A. | 649,349 | 1.57% | |
| PERSSON | ARILD | 588,000 | 1.42% |
| SKANDINAVISKA ENSKILDA BANKEN AB | 508,384 | 1.23% | |
| ORAKEL AS | 500,000 | 1.21% | |
| SEB PRIVATE BANK S.A. (EXTENDED) | 463,512 | 1.12% | |
| UBS AG | 439,518 | 1.06% | |
| LUNDE | DANIEL PETTER | 324,408 | 0.78% |
| GRØNLAND | STEINAR | 287,837 | 0.70% |
(1) The above list is the 20 largest shareholders according to the VPS print out; please note that shareholders might use different accounts and account names, adding to their total holding.
(2) There are 450 shareholders per 31.12.20123
(3) Thorkildsen Invest AS is a company controlled by RomReal CEO Kay Thorkildsen . Altogether RomReal CEO Kay Thorkildsen owns 15.09% of the Company.
Harris Palaondas +40 731123037 | [email protected] Victoria House, 31 Victoria Street, Hamilton, HM10, Bermuda
For further information on RomReal, including presentation material relating to this interim report and financial information, please visit www.romreal.com
The information included in this Report contains certain forward-looking statements that address activities, events or developments that RomReal Limited ("the Company") expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties. The Company is subject to a large number of risk factors including but not limited to economic and market conditions in the geographic areas and markets in which RomReal is or will be operating, counterparty risk, interest rates, access to financing, fluctuations in currency exchange rates, and changes in governmental regulations. For a further description of other relevant risk factors we refer to RomReal's Annual Report for 2012. As a result of these and other risk factors, actual events and our actual results may differ materially from those indicated in or implied by such forward-looking statements. The reservation is also made that inaccuracies or mistakes may occur in the information given above about current status of the Company or its business. Any reliance on the information above is at the risk of the reader, and RomReal disclaims any and all liability in this respect.
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