SIF2 Q1 2014

SIF2 key figures Highlights Portfolio

Legal framework

Scope of activity

SIF Moldova is a closed-end financial investment company, established in accordance with the provisions of Law no. 133/1996 for the conversion of the Private Property Funds into financial investment companies, classified in the “non-UCITS” (non Undertakings for Collective Investment in Transferable Securities) category, with a diversified investment policy, certified by Romanian FSA with Certificate no. 258/Dec 14, 2005.

• Management of financial instruments as defined by ASF regulations; • Other related activities, in compliance with legal regulations in force. • According to the classification of activities in the national economy

NACE Rev. 2, the activities performed by SIF Moldova are included in NACE Code 6499 “Other financial services not elsewhere classified”.

SIF Moldova is a non-UCITS, focused mainly on the Romanian market, operating as a closed-end fund with investments in shares, having a medium level of risk and temporary liquidity investments in fixed income instruments.

Type

INFORMATIVE DATA

BOARD

Costel CEOCEA, PhD President and CEO

Claudiu DOROS, MBA Vice President and

Deputy CEO

Horia CIORCILA Board member

Founder of Banca Transilvania

Radu HANGA, MBA Board member

Andrei HREBENCIUC, PhD Board member

Chairman of Audit Committee

Catalin IANCU, MBA Board member

Chairman of Investment Strategies Committee

Octavian RADU Board member

Chairman of Nominations Committee

Financial auditor Deloitte Audit SRL

Custodian

Depository

2

Issued shares 519,089,588

Q1 2014 (RON) (EURO)

Nominal value 0,1 0,022

Share capital 51.908.958,8 11.638.779

Market Cap 656.648.328 147.230.567

Indicator 2012 Q1 2013 2013 Q1 2014 Q1 2014/Q1 2013 (%)

Total asset (mn RON) 1.144 1.291 1.339 1.310 101

Net asset (mn RON) 1.090 1.243 1.275 1.225 99

NAV per share (RON) 2,10 2,39 2,45 2,36 99

Market price (RON) 1,45 1,48 1,47 1,26 85

Discount: Market price / NAV per share(%) 31 38 40 46

Assets under management Values

0%

10%

20%

30%

40%

50%

60%

-

0.5000

1.0000

1.5000

2.0000

2.5000

3.0000

mar'13 apr mai iun iul aug sep oct nov dec ian feb mar'14

NAV per share (RON) Market price SIF2 (RON) Discount (%)

3

Assets structure

Investments in securities

Top companies

SIF2 holdings in the share capital of

the issuer (%)

Weight > 1% in total assets

BANCA TRANSILVANIA 5,03 14,60

FONDUL PROPRIETATEA

1,33 11,41

BRD 1.85 8,10

OMV PETROM 0,38 7,01

SIF OLTENIA 4,99 4,35

SNTGN TRANSGAZ 2,27 3,99

BIOFARM 13,81 3,40

ERSTE BANK 0,08 3,03

SIF MUNTENIA 4,99 2,49

SNGN ROMGAZ 0,24 2,39

AEROSTAR 14,58 2,15 TESATORIILE REUNITE 92,08 1,94

TRANSELECTRICA 1,39 1,30

REGAL 93,01 1,24 MECANICA CEAHLAU 55,10 1,23

TOTAL 68,62

Investments in securities Q1 2014: 99% - 100 mn RON - shares 1% - 1 mn RON - fund units

(% of total assets) 2012 Q1

2013 2013

Q1

2014 T1 ’14 - T1 ‘13

Shares, of which 86,33 85,90 91,03 80,92 -4,98

listed 83,04 81,75 86,46 75,93 -5,82

unlisted 3,29 4,15 4,57 4,99 +0,84

Non – UCITS Securities (fond units) 3,34 3,37 3,34 3,29 -0,08

Monetary instruments (deposits. cash) 7,71 7,67 2,99 12,70 +5,03

Bonds (municipal, corporate, bond funds) 0,88 0,83 0,96 0,95 +0,12

Other assets 1,74 2,23 1,68 2,14 -0,09

123

19

141

101

2012 Q1 2013 2013 Q1 2014

Investments in securities (mn RON) 101% of 2014 target

4

Portfolio evolution by type of asset (% of the total value of assets)

Share portfolio evolution by sector (% of the total value of assets)

83.0 81.7 86.5 75.9

3.2 4.1 3.7 4.9

7.7 7.6 3.0 12.7

6.1 6.6 6.0 6.5

2012 Q1 2013 2013 Q1 2014

listed shares unlisted shares monetary instruments other assets

47.3 44.8 44.5 34.1

22.4 22.2 28.2

27.0

8.2 10.2 9.0

10.0

2.5 2.7 3.6

3.6

5.8 6.2 5.7

6.0

2012 Q1 2013 2013 Q1 2014

Financial Energy Manufacturing Pharmaceuticals Others

5

Financial performance (RON mn)

Dividend policy

115% of 2014 target

Decision 4. OGMS

15.04.2014

Dvidends 2013: Approves the gross dividend of 0,066 RON/share. The Company will initiate the payment of dividends in no more than 60 days from the publication of the decisions of the general assembly of shareholders in the Romanian Official Gazette, part IV; the costs related to the payment will be borne out of the value of the net dividends.

Total dividend fund of 34.26 million lei, representing 85% of the total cash as of December 31, 2013, which ensures a payout ratio of 37.7% and a dividend yield of 5%.

206

50

203

246

24

0.4

26

0 6

0.8 3

0.5

2012 Q1 2013 2013 Q1 2014

Revenue from ceded financial investments

Revenue from dividends

Revenue from interest137

91

135

2012 2013 Q1 2014

Net profit evolution

6

Sector performance

SECTOR PERFORMANCE Q1 2014 SIF 1 SIF 2 SIF 3 SIF 4 SIF 5 Net Profit (mn RON) 54 135 -0,3 106 7

Performance / Risk Indicators

Exposure to the market risk quantified by SIRR: 15.59% The Synthetic Indicator of Risk and Return calculated based on annualized volatility of the monthly NAV from the last 5 years

of activity, places SIF Moldova in the medium risk profile (currently is classified in the 6th , as in December 31, 2013).

ROA (%) ROE (%) Ecart ROE – ROA T1 ’14

2012 2013 T1 2014 2012 2013 T1 2014 (pp)

SIF 1 7 5 3,4 11 8 5 1,6

SIF 2 12 7 10,4 22 13 16 5,6

SIF 3 17 16 - 25 23 - -

SIF 4 11 11 9,1 17 19 15 6

SIF 5 6 7 0,4 14 17 0,9 0,5

media 9 9 5,8 16 16 9,2

Returns on March 31, 2014 (%)

SIF2 share BET-FI SIF2 NAV/share

1 months -8,33 -4,52 -6,21

3 months -13,95 -7,53 -3,93

6 months 0,96 7,75 2,72

12 months -14,70 / 2,69* 6,09 -1,51

*including the dividend return

Indicator SIF2 share BET-FI

Annualized volatility (%)

27.67 15.43

Beta 1.14 1

7

Management costs

The monthly average percentage of management costs for Q1 2014 represents 0.08% of the total value of assets and it is below the level recorded in Q1 2013 (0.09%). This level is lower than the range of 0.10% - 0.40% (fees paid by the investment funds to management companies).

Expenses on disposal of financial investments represents the largest percentage erea - 83 % - in total expenses, i.e 6% in total assets.

Commissions and fees due to Romanian FSA, Central Depository, BVB, and external auditor represent 0,03% of total assets.

Salaries (excluding social insurance contributions) represent 57% of operating expenses.

Evolution of occupied positions

1,145

1,291 1,339

1,310

137 20 91

135

14 3.5 13.7 3

2012 Q1 2013 2013 Q1 2014

mn

RO

N

total assets net profit opereating expenses

228

119

81

45 44

Before thecurrent mandate

of the Board

The beginig ofthe restructuring

Dec-11 Dec-12 Q1 2014

8

Strategic approaches submitted to the atention/approval of shareholders

Elaborating and publishing of the multiannual strategies starting with 2007, documents that set and quantify the main targets related to SIF Moldova, in correlation with shareholders’ interests.

Through the programme / themes brought to the attention/ approval of the shareholders in the GMS 2013 the re-calibration of the previous strategies is announced, by looking at new fields of analysis, in line with developments in the capital market, economy sectors etc.

The current Board of Directors speeds the process of restructuring portfolio, redefining the categories of assets and their management from the perspective of diversification and capitalization of the investment opportunities. Here are included:

Starting 2013, in order to optimize the process of managing assets in distress, there were retrieved/surrendered to social capital of companies controlled by SIF Moldova, shares owned at closed companies, found in bankruptcy or administrative liquidation ( to Asset Invest SA), as well as fixed assets (to Casa SA), having as effect the application of uniform management policies as well as reducing the operational costs

Investment program 2014

Revenue from ceded financial investments: 195 mn RON Profit from ceded financial investments: 135 mn RON

Investments: 100 mn RON

9

We maintain an important portfolio share in energy and financial banking sectors and we aim at capitalizing investment opportunities from real estate and agribusiness, domains in distress or with a high come back potential

We would like to set up new centralized administrative structures for the companies where we have majority holdings. Uniform management techniques will be implemented, on rationalizing measures for using resources and optimizing costs, for growing the managed value, profitability and performance of capital invested . We intend to list these companies to BSE.

In the same time we will consider a concentration process leading to a decrease of the number of participants and the increase of exposure/issuer, such as to directly determine positive influences on portfolio.

We take into consideration an investment process in SIF’s shares, up to the legal threshold of 5%, in order to benefit from the opportunity offered by FSA Decision 23/Feb 5, 2014, in which the shares issued by a Non-UCITS admitted to trading are defined as securities.

Investment Policy Statement 2014 - 2018 (approved by GMS/15.04.2014)

Developing new business lines especially in domains such as: real estate, agro business, high tech

Investments in new companies as well as in companies from SIF Moldova’s portfolio, that could represent the object of some major investment programmes ensuring improved performance of these issuers.

We do not exclude sectors/ segments in which Romania has a competitive advantage, expertise, financing from international finance institutions and as well the private equity segment which perspectives in the European scene register a constant and certain improvement.

In order to implement investment strategies in the directions mentioned, it is necessary to maintain an ascending trend in the investment effort, with a balanced management of liquidity, clearly sustained by shareholders approval for Investment Policy Statement 2014 – 2018.

10

In investment decisions it is granted an important role to the identification and assessment of the potential risks, aiming constantly to rebalance the portfolio based on return/risk criteria. In this respect it is used a computer application developed in-house which makes internal scoring and portfolio optimization models based on financial and risk/return indicators indicators.

Investment decisions

Integrated Information System (IIS)

SIF2

portfolio

Accountancy

Legal

Evaluation managerial

performance

Portfolio Performance

Evaluation

Operational risks

+ Prudential

limits

Shareholder rights

11

Information / consultation

endorsement

GMS

BD

President &CEO

Vicepresident & Deputy CEO

Chairman of ISC

Investment decision: analysis – endorsement - approval – implementation

FA L& CM IR&CG RM I

Investment Committee

Projects Commitee

Investment Strategies Committee (ISC)

Strategies & Investment policies

Projects Trading &

Sales

implementation

approval

make recommendations

implementation

implementation

implementation

implementation

implementation

endorsement

endorsement

endorsement

12

Executive decisions

Investment analysis, compliance

Input, monitoring data

Investment decision / IIS

IIS

Other

Investments

Accountancy

13

Documents to support the decision

Impact in SIF Moldova portfolio

Investment note

Compliance Proactive research Investment request Board / Executives

Investment decision / IIS

IIS

Other

Investments

Accountancy

14

TRANSPARENCY QUALITY

PERFORMANCE

Bucharest Stock Exchange: SIF2 ISIN: ROSIFBACNOR0 Bloomberg: BBG000BMN5F5 Reuters: SIF2.BX

Phone: 004 0234 576740 Fax: 004 0234 570062 E-mail: sifm@sifm.ro Website: www.sifm.ro 15