Bashneft Ank · RUS:BANE
Bashneft Ank — JSOC Bashneft — Investor Presentation (September 2012)
29 slides from Bashneft Ank's investor presentation, September 2012
Slide 1: JSOC Bashneft Investor Presentation
JSOC Bashneft Investor Presentation September 2012, Moscow
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation may contain assumptions or forecasts with respect to forthcoming events within Bashneft Group. The words “expect”, “estimate”, “intend”, “will”, “could” and similar expressions identify forward-looking statements. We wish to caution you that these s
Slide 3: Bashneft Group Today as vertically integrated company
Bashneft Group Today as vertically integrated company Crude Oil Production 2011 Oil production – 15.1 mln.tonnes. 2011 Oil production growth rate +6.8% Share in Russia’s crude oil production in 2011 – 3.0% 1H 2012 Oil production – 7.7 mln.tonnes. 1H 2012 Oil production growth rate +3.1% Number of fi
Slide 4: Financial and Operating Highlights, 2Q 2012
Financial and Operating Highlights, 2Q 2012* Oil production changed insignificantly and totalled 3,811 thousand tonnes; Operating results Crude oil refining decreased by 3.2% to 4,954 thousand tonnes; Refining depth increased by 1.5 p.p. to 85.8%; Light oil output decreased by 2.0 p.p. to 57.9%; Pet
Slide 5: Key indicators for Bashneft Group in 2Q 2012 and 12M 2011
Key indicators for Bashneft Group in 2Q 2011 and 12M 2011 2Q 2012 1Q 2012 ∆, % Indicator 12M 2011 12M 2010 ∆, % Macro indicators 106.8 117.0 -8.7% Urals price, US$/barrel 109,1 78,3 39,3% 60.7 54.9 10.5% Crude oil export duty, US$/barrel 56,0 37,5 49,3% Operating results 305,7 308,0 -0,7% Crude oil
Slide 6: Bashneft reserve base as of December 2011
Bashneft reserve base as of 31 December 2011 Reserves Reserves Trebs & Titov oilfields in Nenets 188 fields, of which 166 in operation Autonomous Okrug (2 oilfields) Proved oil reserves (1P) in 2011– 1,984mmbbl; (2P) – 2,404mmbbl Reserve life of 18 years (1P), 22 years (2P) 5 oilfields in Replacemen
Slide 7: Nenets strategic region development: Trebs & Titov oilfields
Nenets strategic region development: Trebs & Titov oilfields In the long-run the project will support production growth Reserves under АВС1 classification, mmt: C1+C2: 140.1 C3: 59.3 Reserves under the standards of PRMS(1), mmbl: Contingent resources: 732 Prospective resources : 61 In February 2011
Slide 8: Trebs & Titov oilfields: the key driver of future production growth
Trebs & Titov oilfields: the key driver of future production growth 15 April 2011: Bashneft and Lukoil signed a treaty on cooperation for the development of the oilfields 14 December 2011: license reissued for JSC Bashneft Polus 27 December 2011: signing of final documents on establishment of JV Bas
Slide 9: Today's confidence in supporting of current oil production level
Today's confidence in supporting of current oil production level Oil production growth rates in 2011, % Upstream business results 6.8% Bashneft remained the Russian oil sector leader by crude 2,1% output growth rates in 2011. Crude output was 15.106 million tonnes, which is 6.8% more than in 2010. 1
Slide 10: Upstream strategy by 2016
Upstream strategy by 2016 Oil production forecast, mln tonnes 20 18,5 18 15,1 15,2 16 14,1 14 12,2 12 10 8 6 4 2 0 2009 2010 2011 2012E 2013E 2014E 2015E 2016E Bashneft "as is" Trebs & Titov Mid-term goals 2012- 2016 Crude oil production of 18.5mmt by 2016 on the basis of existing assets: Maintainin
Slide 11: Bashneft Group refining complex is best in Russia
Bashneft Group refining complex is best in Russia Oil refining capacity – 24.1 mln. tonnes per year 2011 Refining volume – 21.1 mln. tonnes Average refining depth – 85.9% 2011 Share of light products – 59.9% Nelson index – 8.3 Bashneft engine fuels fully comply with Euro 3 standards 2011 Share of ga
Slide 12: Bashneft: leading position among Russian Majors in oil refining
Bashneft: leading position among Russian Majors in oil refining Oil refining growth rates (FY11),% Comments Refining volumes in 2011 declined by 0.6% y-o-y to 21.062 million tonnes; * 5,4% Crude oil refining volume amounted to 4,954 thousand tonnes, having decreased by -0,1% 3.2% in the 2Q 2012; thi
Slide 13: Downstream strategy by 2016
Downstream strategy by 2016 Refining volume, refining depth and light yield Mid-term goals (2012- 2016) 25 94,4% 100% Refining Modernisation 85,9% Oil product basket optimisation by decreasing share of heavy petroleum products; 23 73,4% 80% Increasing of Nelson complexity index to 9.6: construction
Slide 14: Bashneft petroleum product sales dynamics and structure
Bashneft petroleum product sales dynamics and structure Export and domestic sales of oil products, Sales results mln. tonnes. 6,0 Export sales of petroleum products and petrochemicals outside the CIS increased 5,0 by 34.1% (1,426 thousand tonnes in the 2Q 2012 versus 1,063 thousand tonnes in the 1Q2
Slide 15: Capex dynamics: focus on newly acquired fields and refining modernization
Capex dynamics: focus on developing newly acquired fields and modernizing refining capacities Capex dynamics, US$ mln CAPEX in production and refining, US $ mln 900 851 250 800 53 203 700 200 589 308 600 146 147 500 492 150 190 436 136 6 102 106 400 95 143 100 78 84 300 74 76 215 134 67 490 50 200 5
Slide 16: Capex overview (2011e-2016e)
Capex overview (2011e-2016e) Capex structure by business lines Comments (average annual) Bashneft estimates that the capital expenditure in 2011-2016 may be ~ US$1-1.2bn per year 100% around US$1-1.2bn (ca. RUB 40bn) per year (excluding acquisitions in 20% the upstream segment); 80% 30% Upstream cap
Slide 17: Bashneft key credit strengths
Bashneft key credit strengths Large-scale vertical Extensive reserve base Top-industry production integration from crude oil combined with top-industry growth rates backed by production to sales of replacement results and lowest significant potential for petroleum products F&D costs further expansio
Slide 18: Debt portfolio
Debt portfolio Debt breakdown (as of June 30, 2012) Debt structure, % 4500 100% 5,0% 4000 9,0% (476) 90% 3500 80% 3000 70% (1 351) 2500 60% 3 444 50% 2000 3 930 95,0% 91,0% 40% 1500 30% 1000 2 103 20% 500 10% 486 0% 0 Short term Long term Total Cash and cash Short term Net debt FY2010 FY2011 equival
Slide 19: Appendix
Appendix
Slide 20: Shareholder structure: stock consolidation by Sistema
Shareholder structure: stock consolidation by Sistema Shareholder equity Voting shares 3,1% Sistema 1,5% 12,2% 23,9% Sistema BB/Ba3/BB- (S&P/M/F) is the largest public Sistema-Invest diversified financial corporation in Russia and the CIS, which operates companies from a broad array of 52,1% Other l
Slide 21: Bashneft group structure before transition to a single share
Bashneft group structure before transition to a “single share” 52.1% * (61.3% **) Sistema JSFC 26.7% * (26.7% **) Bashneft Sistema-Invest 20.9% * (25.0% **) 54.9% * (65.7% **) 18.2% * (22.4% **) Ufaneftekhim 8.1% * (8.1% **) 61.8% * (67.4% **) 25.6% * (28.2% **) Novoil 47.8% * (50.2% **) 7.3% * (7.3
Slide 22: Transition to a single share
Transition to a “single share” Key goals of the transaction Target Corporate Structure3 Establish Bashneft as a fully-fledged vertically-integrated company Minority Optimise corporate structure to improve efficiency AFK Sistema shareholders Protect the rights of minority shareholders 29.0%¹ 46.1%¹ 5
Slide 23: Transition to a single share: buyback and conversion factors
Transition to a “single share”: buyback and conversion factors Proposed buyback prices (Roubles) Ordinary Shares Preferred shares Conversion ratio: number of Conversion ratio: number of Company shares in subsidiary per 1 share of Buyback price shares in subsidiary per 1 share Buyback price Bashneft
Slide 24: Constant monitoring and application of best corporate governance practices
Constant monitoring and application of best corporate governance practices Board of Directors Felix Evtushenkov Chairman Sergei Drozdov Aleksey Buyanov Senior Vice President, Senior Vice President, Alexander Goncharuk Charles Watson Randall Gossen Head of Corporate Head of the Finance and Deputy Cha
Slide 25: Corporate governance and management structure
Corporate governance and management structure Committees Alexander Nominating and Board of Strategy Corporate Conduct Budget and Audit Korsik Compensation Directors Committee Committee Committee President Committee Exploration & Production Refining and commerce Strategy Finance Governance & Legal Mi
Slide 26: Management team with strong track record
Management team with strong track record Alexander 1995-1997 Deputy executive director of KomiTek-Moscow Korsik 1997-1999 Head of strategic development department, 1999-2005 first vice president of Sibneft President 2006 Deputy executive board chairman of Renaissance Capital, 2006-2007 president of
Slide 27: Management team (cont'd)
Management team (cont’d) 1997-2006 Worked in OJSC Sibneft Igor Marchenko November 2006- 2007 Development Director of ITERA Oil and Gas Company LLC. Vice President 2007-2009 Vice President for Development in OAO NK RussNeft. Strategy and 2009–2011 Worked as an Executive Vice-President, the Director o
Slide 28: Management team (cont'd)
Management team (cont’d) Viktor 20 years of experience at the Ufa refinery Gantsev 1998-2004 Director of Bashneftekhim Senior Vice President 2006-2009 Director of Ufaneftekhim Refining and 2009 Senior Vice President of the refining department at Bashneft Petrochemicals 1996-1998 Head of implementati
Slide 29: Thank you for your attention!
Thank you for your attention! Our contacts: Investor Relations Department Maria RADINA Head of IR Phone: (007) (495) 225-00-35, ext. 99832 E-mail: RadinaMA@bashneft.ru 5, 1-st Tverskaya-Yamskaya Moscow, 125047, Russia Tel: +7 495 225 – 00 – 35 Fax + 7 495 228 – 15 – 90 ir@bashneft.ru
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