ABOUT SIF TRANSILVANIA

Societatea de Investiții Financiare Transilvania S.A. (S.I.F. Transilvania) is a joint-stock company which operates as a closed-end financial investment company, set up by Articles of Incorporation. According to the Romanian Financial Supervisory Authority regulations, the Company is included in the category of „Other collective investment undertakings (NON-UCITS) with a diversified investment policy”. The Company is managed in a two-tier management system by an Executive Board which is controlled by a Supervisory Board.

The subscribed and paid-in share capital worth RON 218,428,666.40 is composed of 2,184,286,664 common, nominative and dematerialized shares issued at a par value of RON 0.10 /share. S.I.F. Transilvania shares are held by individual shareholders (63.38%) and institutional investors (36.62%), both Romanian and foreigners (as of 29.02.2016). The shares are listed on the Bucharest Stock Exchange (under SIF3 symbol) since November 1, 1999.

S.I.F. Transilvania aim is to manage the portfolio investments and to continuously identify investment opportunities under the condition of ensuring a reasonable level of the investment risk, with the view of offering to its shareholders the opportunity of achieving attractive returns and the increase of the capital invested.

S.I.F. Transilvania holds and manages an investment portfolio consisting of stocks, bonds and other investment instruments. The stock portfolio includes shares held in 165 companies, almost half of them being traded on the stock exchange. The main sectors in which S.I.F. Transilvania currently holds investments are tourism, finance & banking and energy. The total assets of the Company amount to RON 936.35 million and the net assets to RON 862.79 million (calculated as at 31.03.2016).

The shareholders register is kept, under contract and law provisions, by the central depository company –S.C. Depozitarul Central S.A. Bucharest. The custody and depository services related to the financial instruments held by S.I.F. Transilvania are provided by BRD-Groupe Société Générale. The Company’s annual financial statements have been audited, until 2015, by the financial auditor (statutory) PricewaterhouseCoopers Audit SRL Bucuresti. As of 01.05.2016, the new financial auditor (statutory) is Deloitte Audit SRL Bucuresti which has been appointed for a 3-year mandate through the OGMS Decision no. 1/28.04.2016.

S.I.F. Transilvania is a full member of the European Private Equity & Venture Capital Association (E.V.C.A.) with headquarters in Bruxelles, the Romanian Association of Assets Managers (A.A.F.) as well as of the Brasov Chamber of Commerce and Industry.

Investments

S.I.F. Transilvania objectives within its short and medium term investment strategies are the following:

  1. restructure the portfolio managed;
  2. promote investments correlated with the dividend policy and the level of financial resources available;
  3. consolidate the Company position and image on the capital market.

Considering the shareholders’ interest in building the long term sustainability of the Company activity, the strategic guidelines are focused on the increase of the investment attractiveness through the optimization of the Company development potential.
The radical restructuring of the stock portfolio includes a set of measures with two main directions, as follows:

  • increase the portfolio companies profitability through optimizing the management and control systems, granting financial support for feasible projects, close monitoring the development of investment projects, promoting balanced dividend policies, promoting corporate governance principles with focus on the assessment of the risk performance and management;
  • increase the portfolio liquidity degree through carrying on the listing of portfolio companies on the stock exchange, promoting the sale of stocks (minority or majority stocks especially from tourism sector).

On short term an important attention is paid to the sale of illiquid stocks or stocks with low liquidity instead of the sale of liquid stocks, so as to ensure a balanced structure and a sustainable development of the portfolio.

Regarding the second objective, the investment program includes (without being limitative) the following measures:

  • focus the investments on listed companies with high liquidity and dividend potential. The following sectors are mainly considered:

•    energy and utilities;
•    pharmaceutical and chemical sectors;

•    financial institutions;
•    IT;
•    agriculture and food industry;

  • monitor/acquire shares issued by companies from energy, industry and services sectors to be sold by the State;
  • establish investment partnerships for the acquisition of stocks non-performing but with growth potential and repositioning on the market;
  • direct invest in the real economy through acquisition of companies for restructuring and subsequent sale, participation in the implementation of large projects;
  • prudential increase the share of speculative activities on the capital market;
  • diversify the portfolio of financial instruments.

The investments are supported through an effective management that promote performance, project development, marketing programs differentially implemented in the targeted market segments in order to revive demand, as well as through a risk integrated management policy.

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