Fondul Proprietatea

Net Asset Value • Feb 15, 2022

Fund: Fondul Proprietatea SA Fund Code: PJR09FIAIR/400018 Reporting date: 31.01.2022

Fund Administrator: Franklin Templeton International Services S.à r.l. Administrator Code: PJM07.1AFIASMDLUX0037

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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	12,778,871,910.59
6.1. Financial assets at amortised cost	0.00
6.2. Financial assets at fair value through profit or loss, out of which:	12,778,871,910.59
6.2.1. Shares traded or listed on regulated markets in Romania*	998,747,116.59
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	11,551,928,197.99
6.2.5. Bonds admitted to trading issued or guaranteed by central government authorities	153,771,373.97
6.2.6. Municipal bonds	0.00
6.2.7. Corporative bonds	0.00
6.2.8. Treasury bills	74,425,222.04
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	0.00
6.3. Financial assets at fair value through other comprehensive income	0.00
7. Cash (cash and cash equivalents)	66,228,952.31
8. Bank deposits	1,170,088,562.93
9. Other assets	116,957.69
9.1. Dividends and other receivable rights	0.00
9.2. Other assets	116,957.69
10. Prepaid expenses	434,974.52
11. Total Assets	14,015,741,358.04

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

12. Total liabilities	458,771,263.52
12.1. Financial liabilities at amortised cost	457,711,303.28
12.2. Deferred tax liability	0.00
12.3. Other debts	1,059,960.24
13. Provisions for risks and charges	0.00
14. Deferred income	0.00
15. Shareholders' equity, out of which:	13,556,970,094.52
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	-8,422.04
15.6. Reserves	666,991,766.17
15.7. Treasury shares	-333,207,639.10
15.8. Retained earnings	10,087,863,722.96
15.9. Period result	-199,011,756.31
16. Net Asset Value	13,556,970,094.52
17. Number of issued shares**	5,853,258,651
18. Net asset value per share	2.3161
19. Number of portfolio companies out of which:	32
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	26

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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. On 1 February 2022, the Romanian State, represented by the Ministry of Public Finance, transferred RON 189,182,422 to Fondul Proprietatea, as payment for all unpaid shares owned by the Romanian State in Fondul Proprietatea (i.e. 363,812,350 shares). This payment will be recorded in February 2022 NAV reporting and will generate the increase of the Total Assets by RON 189,182,422 and of the number of paid-up shares by 363,812,350 shares, while the total impact on the current Net Asset Value per Share will be a decrease by 4.54%.

Leverage of the fund

Method type	Leverage level	Exposure amount
a) Gross method	93.14%	12,627,127,561.36
b) Commitment method	100.00%	13,556,970,094.52

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 – Changes in the valuation methods used for the computation of the NAV of Fondul Proprietatea as at 31 January 2022

For the computation of the NAV of Fondul Proprietatea SA as at 31 January 2022, the valuation method used for the valuation of holding presented below 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 resulted in a net increase of RON 512,899,616.89 as 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	95.3510	8,527,994,728.52	101.0857	9,040,894,345.40	+512,899,616.89	+3.87%

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] _____________________________________________________________________________________________________________________________________________

Annex - Valuation methods used for the securities and the monetary market instruments held by Fondul Proprietatea S.A. (31 January 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
4	Mecon SA	MECP	Fair value (Last trading price)
5	OMV Petrom SA	SNP	Closing Price
6	Romaero SA	RORX	Reference 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 October 2021 (applying the income approach using the discounted cash flow method)
7	CN Aeroporturi Bucuresti SA		Value based on the valuation report as at 31 October 2021 (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 October 2021 (applying the market comparison technique using comparable trading multiples for EBITDA)
10	E-Distributie Dobrogea SA		Value based on the valuation report as at 31 October 2021 (applying the market comparison technique using comparable trading multiples for EBITDA)

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

	Name	Symbol	Valuation method
11	E-Distributie Muntenia SA		Value based on the valuation report as at 31 October 2021 (applying the market comparison technique using comparable trading multiples for EBITDA)
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 October 2021 (applying the market comparison technique using comparable trading multiples for EBITDA)
15	Hidroelectrica SA		Value based on the valuation report as at 31 December 2021 (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 October 2021 (applying the income approach using the discounted cash flow method)
19	World Trade Hotel SA		Priced at zero (lack of annual financial statements for the last 8 financial years including the financial statements for the year ended 31 December 2020; last available financial statements are those for the year ended 31 December 2012)
20	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