Fondul Proprietatea

Fund Information / Factsheet • Aug 16, 2022

MONTHLY REPORT 31 July 2022

Fondul Proprietatea (the Fund) is a joint stock company operating as an Alternative Investment Fund (AIF), incorporated in Romania. The Fund was listed on the Bucharest Stock Exchange on 25 January 2011, and on the Specialist Fund Market of the London Stock Exchange ("LSE") by means of Global Depositary Receipts ("GDRs") on 29 April 2015.

The Fund's investment objective is the maximisation of returns to shareholders and the increase of the net asset value per share via investments mainly in Romanian equities and equity-linked securities.

ALTERNATIVE INVESTMENT FUND MANAGER

FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.À. R.L. as of 1 April 2016

Johan Meyer – Portfolio Manager Călin Meteș - Deputy Portfolio Manager

Daniel Naftali - Deputy Portfolio Manager

FUND DETAILS AS AT 31/07/2022

Base Currency of Fund:	Romanian Lei (RON)
Date of Fund Launch:	28 December 2005
Performance Inception Date:	31 December 2010 for NAV 25 January 2011 for Ordinary Share Price 29 April 2015 for Global Depositary Receipts
Number of shares in issue and paid-up:	6,412,196,967
Number of Paid Shares less Treasury Shares:	5,768,440,715
Number of Voting Rights12:	5,778,946,595
Subscribed and paid-up share capital	RON 3,334,342,422.84

CASH DISTRIBUTIONS PER SHARE¹³

2022 Dividend:	0.125 RON June 2022
2021 Special Dividend :	0.06 RON February 2022
2021 Special Dividend:	0.07 RON August 2021
2021 Special Dividend:	0.072 RON June 2021
2020 Dividend:	0.0642 RON July 2020
2019 Dividend:	0.0903 RON July 2019
2018 Dividend:	0.0678 RON June 2018
2017 Cash Distribution:	0.05 RON June 2017
2017 Special Cash Distribution:	0.05 RON March 2017
2016 Cash Distribution:	0.05 RON June 2016
2015 Cash Distribution:	0.05 RON June 2015
2014 Cash Distribution:	0.05 RON July 2014
2012 Dividend:	0.04089 RON June 2013
2011 Dividend:	0.03854 RON June 2012
2010 Dividend:	0.03141 RON June 2011
2008–2009 Dividend:	0.0816 RON October 2010

FUND IDENTIFIER

Bucharest Stock Exchange Symbol:	FP
London Stock Exchange Symbol:	FP.
Bloomberg:	FP RO (for BVB) and FP/LI (for GDRs)
Reuters:	FP.BX (for BVB) and FPq.L (for GDRs)
ISIN:	ROFPTAACNOR5
ASF Public Register No:	PJR09FIAIR/400018/28.01.2022
CIIF Registration No:	AC-4522-8/25.02.2022
LEI Code:	549300PVO1VWBFH3DO07

SHARE PRICE (RON) AND (DISCOUNT)/ PREMIUM (%) SINCE LISTING ON BVB NAV/Share: FUND DESCRIPTION

13%

• RON 2.8202 / USD 0.5826 / EUR 0.5715 Ordinary Share Price:
• RON 1.9820 / USD 0.4094 / EUR 0.4016
• GDR price (1 GDR = 50 shares): RON 97.79 / USD 20.20 / EUR 19.82 0%

• Current Share Price (Discount)/Premium¹ : (29.72%) Current GDR (Discount)/Premium¹ : (30.66%) Fund NAV: RON 16.27 billion / -13%

• USD 3.36 billion / EUR 3.30 billion Market Capitalisation -26%

• (Excluding treasury shares): RON 11.43 billion / USD 2.36 billion / -40%

1.25 0.95 0.65 0.35 1/11	12/11 11/12 10/13	9/14	8/15 7/16 Share Price (RON)	6/17	5/18 4/19 (Discount)/ Premium (%)	3/20 2/21	1/22 7/22	-26% -40% -53% -66%	Market Capitalisation EUR 2.32 billion / EUR 3.11 million EUR 0.58 million	USD 3.36 billion / EUR 3.30 billion (Excluding treasury shares): RON 11.43 billion / USD 2.36 billion / Average Daily Turnover on the BVB2 RON 15.37 million / USD 3.18 million / Average Daily Turnover on the LSE2 RON 2.88 million / USD 0.59 million /		: :
Cumulative Performance %			1-Mo	3-Mo	6-Mo	YTD	9-Mo	1-Yr	2-Yr3	3-Yr3	5-Yr3	Since perf. incept.4
NAV RON5			1.38	9.43	27.67	30.70	44.17	63.78	45.14	30.54	25.92	366.92
	Ordinary Share Price RON6		(3.79)	2.29	3.54	9.04	29.93	22.66	37.35	31.47	27.15	629.98
GDR USD7			(7.34)	(2.94)	(2.94)	(2.80)	9.84	0.67	25.89	24.99	20.96	215.68
Ordinary Share Price (55.67)	The Fund uses these indicators as they are directly related to the performance objectives of the Fund included in the Investment Policy Statement. AVERAGE ANNUAL (DISCOUNT)/ PREMIUM %1	(50.09)	(40.74)	(30.87)	(29.12)	(32.08)	(28.05)	(29.54)	(29.38)		(21.06)	(5.69) (14.98)
GDR	-	-		-	- (29.51)	(29.98)	(27.39)	(29.53)	(30.34)		(22.17)	(7.63) (16.58)
PORTFOLIO		STRUCTURE				TOP	10	HOLDINGS
Asset					% of NAV		Security name					% of NAV
Listed Equities					6.44		Hidroelectrica SA					77.20
Unlisted Equities					91.54		OMV Petrom SA					5.50
	Net Cash & Receivables8				2.02			CN Aeroporturi Bucuresti SA				4.28

Ordinary Share Price (55.67)		(50.09)	(40.74)	(30.87)	(29.12)	(32.08)	(28.05)	(29.54)	(29.38)	(21.06)	(5.69)	(14.98)
GDR	-	-	-		- (29.51)	(29.98)	(27.39)	(29.53)	(30.34)	(22.17)	(7.63)	(16.58)

Asset	% of NAV
Listed Equities	6.44
Unlisted Equities	91.54
Net Cash & Receivables8	2.02

Sector % of NAV Power utilities: generation 77.20 Infrastructure 6.57 Power & Gas utilities: distribution, supply 6.22 Oil & Gas 5.50 Heavy Industry 1.72 Aluminium 0.60 Postal services 0.09 Others 0.08 Net Cash and receivables⁸ 2.02

Romanian institutional investors	36.02
Romanian private individuals	20.17
The Bank of New York Mellon (depository bank for Global Depository Receipts)10	14.26
Foreign institutional investors	11.04
Treasury shares11	9.69
Ministry of Finance	5.78
Foreign private individuals	3.04
Total Number of Shareholders	14,718

Asset	% of NAV	Security name	% of NAV
Listed Equities	6.44	Hidroelectrica SA	77.20
Unlisted Equities	91.54	OMV Petrom SA	5.50
Net Cash & Receivables8	2.02	CN Aeroporturi Bucuresti SA	4.28
		Engie Romania SA	2.71
Sector	% of NAV	CN Administratia Porturilor Maritime SA	1.84
Power utilities: generation	77.20	Societatea Nationala a Sarii SA	1.56
Infrastructure	6.57	E-Distributie Banat SA	1.08
Power & Gas utilities: distribution, supply	6.22	1.00 E-Distributie Muntenia SA
Oil & Gas	5.50		0.86
Heavy Industry	1.72	E-Distributie Dobrogea SA
Aluminium	0.60	Alro SA	0.60
Postal services	0.09	Total	96.63
Others	0.08
Net Cash and receivables8	2.02
SHAREHOLDERS STRUCTURE9	%	LARGEST SHAREHOLDERS
Romanian institutional investors	36.02	NN Private Pension Funds	11.24
Romanian private individuals	20.17
The Bank of New York Mellon (depository bank for Global Depository Receipts)10	14.26	Silver Point Capital Funds	8.81
Foreign institutional investors	11.04	Ministry of Finance	5.97
Treasury shares11	9.69	Allianz-Tiriac Private Pension Funds	5.05
Ministry of Finance	5.78	Based on the total voting rights as declared by shareholders through the ownership
Foreign private individuals	3.04	disclosures submitted on: 7 July 2022 by Silver Point Capital Funds, 11 April 2022 by NN
	14,718	Private Pension Funds, 1 April 2022 by Ministry of Finance, and 1 July 2019 by Allianz

%		%
	NN Private Pension Funds	11.24
	Silver Point Capital Funds	8.81
	Ministry of Finance	5.97
	Allianz-Tiriac Private Pension Funds	5.05

DESCRIPTION OF NAV BASIS

THE CURRENT REGULATIONS

Monthly Report 31 July 2022

Net Asset Value is calculated according to regulations approved by Local Regulator (FSA Regulations No. 9/2014 and No. 7/2020, as subsequently amended). Where there is trading activity in the last 30 trading days, the shares listed on a regulated market or admitted to trading on AeRO market (alternative trading system) are valued at closing price. Where there is no trading activity in the 30 trading day-period for listed investments, the unlisted valuation approach applies. Investments in unlisted companies are valued using valuation methods in accordance with International Valuation Standards (according to the fair value principle). Investments in companies in liquidation, dissolution, bankruptcy, insolvency or judicial reorganization are valued at nil. Investments in companies under temporary or final suspension of operation, are valued at zero until the procedure is finalized. Starting with the NAV report as at 29 January 2016, the accounting records under IFRS are used for the computation of NAV for the items that are not part of the financial instruments' portfolio (non-portfolio items). The Fund's portfolio consists mainly of unlisted financial instruments and consequently the performance of the Fund can fluctuate considerably over time. Risk related to industry sectors: the Fund has a significant exposure in companies in oil, gas and electricity sector. Therefore, the Fund's performance will depend largely on the overall condition of the industries and markets in which the companies in the Fund's portfolio operate. Risk related to Romania: The Fund holds significant holdings in companies that are controlled by Romanian State. Past experience indicates that management of these companies is often replaced after government changes, which may affect the financial results of such companies in the Fund's portfolio and the Fund's overall performance. Risk related to Global Pandemic: The spread of infectious diseases, such as COVID-19, could have a significant adverse impact on the Fund's operations and Fund's returns. Other materially relevant risks are unlisted investment risk, and share discount to NAV risk. For full details of all of the risks applicable to this Fund, please refer to the "Risk Factors" section of the Fund in the current prospectus of Fondul Proprietatea.

WHAT ARE THE KEY RISKS?

Important Information and Disclaimers

The above portfolio information is calculated on the basis of the NAV. The Investment Manager for the Fund reserves the right to withhold release of information with respect to holdings that would otherwise be included in the Top 10 Holdings list where the protection of such information is in the best interests of the Fund. The price of shares and income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is no guarantee of future performance. In emerging markets, the risks can be greater than in developed markets. Investment in the Fund may not be suitable for all investors; we suggest investors seek guidance from a financial adviser. Read the issue prospectus before investing in this fund/investment firm. FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.À R.L. as alternative investment fund manager and sole director of Fondul Proprietatea SA issues quarterly, semi-annual and annual reports which are published on the Fund's website at www.fondulproprietatea.ro. This is a short summary for the information of existing shareholders only and is not intended to be used as the basis for investment decisions. Existing and potential investors should refer to the Fund's prospectus and amendment, available at www.fondulproprietatea.ro. All information presented in the report is provided by Franklin Templeton International Services S.À R.L., Bucharest Branch. This report is issued in Romania by Franklin Templeton International Services S.À R.L., Bucharest Branch, at 76-80 Buzesti Str, Premium Point, 8th Floor, Bucharest 1, 011017, ROMANIA. calculation. For Current Discount/ Premium, the values are calculated based on the 31 July 2022 NAV. 2. For the period: 1 – 31 July 2022. 9. Based on the subscribed and paid-up share capital as at 31 July 2022 as received from Depozitarul Central SA. 10. Out of which Fondul Proprietatea held 239,388 Global Depository Receipts (11,969,400

References

1. The (Discount)/ Premium is calculated based on the latest published NAV at the date of the

2. Annualized rate of return.

3. 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.

4. The NAV per Share Total Return is calculated in RON by geometrically linking total returns for all intermediate periods when official NAV is published. Each total return for a single period is calculated using the following formula: the NAV per share as at the end of the period plus any cash distribution during the period, dividing the resulting sum by the official NAV per share at the beginning of the period. The resulting single period total returns are geometrically linked to result in the overall total return.

5. The Share Price Total Return is calculated in RON by geometrically linking daily total returns. Daily total return is calculated as the closing price at the end of the day, plus any cash distributions on that day, dividing the resulting sum by the closing price of the previous day. The resulting single period total returns are geometrically linked to result in the overall total return.

6. The GDR Price Total Return is calculated in USD by geometrically linking daily total returns. Daily total return is calculated as the closing price at the end of the day, plus any cash distributions on that day, dividing the resulting sum by the closing price of the previous day. The resulting single period total returns are geometrically linked to result in the overall total return.

7. Net cash and receivables includes bank deposits, current bank accounts, short-term Government securities, dividend receivables, as well as other receivables and assets, net of all liabilities (including liabilities to shareholders related to the returns of capital and dividend distribution) and provisions.

shares equivalent).

1. 643,756,252 treasury shares out of which 449,384,498 treasury shares acquired in the 13th buyback program and 194,371,754 treasury shares acquired in the 12th buyback program.

Fund's headquarters are at 76-80 Buzesti Str, 7th Floor, 12. The own settled shares and shares equivalent of own global depositary receipts held by the Fund are excluded from the calculation of the number of voting rights. The repurchased own shares and global depositary receipts for which the settlement is ongoing at the date of this report are not excluded from the calculation of the number of voting rights. 13. Distributions since the start of Franklin Templeton mandates.

tel.: +40 21 200 96 00 fax: +40 31 630 00 48 Bucharest District 1, 011017, Romania. Fund's Fiscal Identification Code (CIF): 18253260 and Trade Registry registration no: J40/21901/2005.

Contact Us

www.fondulproprietatea.ro investor.relations@fondulproprietatea.ro