In Q1 2023, Fondul recorded an unrealized gain from equity instruments at fair value through a P&L of RON 4.1m. Net operating income amounted to RON 13.6m, while the Fund recorded a net loss of RON 11.5m (compared to RON 826.1m in Q1 2022). Finally, looking at the latest available data for NAV, as of March 2023, NAV stood at RON 14bn, a decrease of 3.7% YoY.

In Q1 2023, the unrealized gain from equity instruments at fair value through profit and loss amounted to RON 4.1m (compared to RON 821.2M in Q1 2022). The unrealized gain from equity investments at fair value through profit or loss was mainly generated by the change in fair value for the holding in Alro. Further, the Fund also assessed its unlisted holding valuation with no major changes. As a result, no updates were made in the valuation of the unlisted holdings in the Fund’s portfolio in Q1 2023.

In total, the net operating income amounted to RON 13.6m (compared to RON 859.8m). Moving on to OPEX, it amounted to RON 25.1m, a decrease of 25.3% YoY, coming mainly from intermediaries and other transaction-related fees (RON 6.1m, down from RON 7.3m in Q1 2022). Overall, the larger decrease in op. income meant that Fondul achieved a Loss before tax of RON 11.5m, compared to EBT of RON 826.1m in Q1 2023, which came on the back of higher net operating income in the year before.

The Fund, therefore, recorded a non-taxable income of RON 10.6m, which mitigates the non-deductible expenses of RON 13.7m, as well as the impact from the income tax of RON 1.8m. When combined with the mentioned income tax at 16% (RON 1.8m), this would mean that the Fund does not pay any income tax on a quarterly basis. With this said, the net loss amounted to RON 11.5m.

Fondul Proprietatea key financials (Q1 2022 vs. Q1 2023, RONm)

Source: Fondul Proprietatea, InterCapital Research

Balance Sheet

Looking at the balance sheet, the Fund recorded a decrease in liquid assets (including cash and cash equivalents, deposits with banks, treasury bills, and government bonds) due to the cash outflow for the buy-back program. Meanwhile, total liabilities increased by 8.1% YoY and amounted to RON 123.5m, due to the higher administration feeds.

Finally, the Fund’s total NAV amounted to RON 14bn, a decrease of 3.7 YoY, meaning that the NAV per share amounted to RON 2.5823 in March 2023 (the latest available data for NAV).

In April, passenger car registration in the EU increased by 17.2% YoY, totaling 803,188 units. Meanwhile, looking at the first four months of 2023, EU registration of new cars increased by 17.8% YoY overall. In Croatia in the mentioned period, passenger car registration reported a much more pronounced increase of 38.8% YoY.

In April 2023, passenger car registration in the EU increased by 17.2% YoY, totaling 803,188 units. The most significant increase reported in the EU in April by far was in Italy, where the reported increase amounted to 28.5k units, representing a 29.2% YoY increase. Italy is followed by France and Germany, where a 23.8k and 22.7k units increase can be noted, respectively (+21.9% and 12.6% YoY). Spain, which is also considered a major and significant region, noted a somewhat lower single mid-digit growth of 5.6k units (+8.2% YoY). With this said all major regions within the EU noted a strong positive development during April.

When observing the first four months of 2023, the situation is pretty similar – EU registration of new cars increased by 17.8% YoY, reaching 3.5m units registered in total. The most significant increase reported in the EU in the first four months by far was in Italy, where the reported increase amounted to 117.1k units, representing a 26.9% YoY increase. Italy is followed by France and Spain, where a 79.3k and 78.8k units increase can be noted, respectively (+16.7% and 33.7% YoY). Germany is closely following, which is also considered a major and significant region, noting an increase of 63.6k units (+7.9% YoY). With everything said all major regions within the EU noted a strong positive development during the first four months of 2023, including this month to further amplify the mentioned growth.

Looking at the region, when observing the whole period since the beginning of the year, Croatia reported an increase of 38.8% YoY, amounting to 19.3k units registered. Slovenia reported somewhat slower growth of 6.7%, amounting to a total of 17.8k units. However, it should not surprise that the growth in Croatia was mainly driven by registration in Petrol cars, which of course should not surprise. Further, “only” 0.7k new registration cars were noted in Battery electric segment (more than 2x YoY for the whole period). Also, solid growth was noted for Hybrid electric from 3.2k during 2022, to 4.3k in this period.

Fuel type cars market share [April 2023]

Source: ACEA, InterCapital Research

During April, the most significant change occurred with electric cars, where a significant growth in market share by 2.7 p.p. YoY was noted, now amounting to 11.8%. Furthermore, hybrids now represent 24.8% of the EU’s new car market. Finally, petrol cars continue to dominate with the largest share of 38.2% (flat YoY development).

Here you can find the dates for the upcoming events of the regional companies.

Due to the nature of these events, they are subject to change (might be postponed or canceled).