Petroleo Brasileiro Sa · BMFBOVESPA:PETR3
Petroleo Brasileiro Sa — Petrobras - Petroleo Brasileiro — Shareholder Meeting (November 2016)
52 slides from Petroleo Brasileiro Sa's shareholder meeting presentation, Nov 1, 2016
Slide 1: Extraordinary General Meeting - Manual for Shareholder's Participation
Extraordinary General Meeting MANUAL FOR SHAREHOLDER’S PARTICIPATION November 30*, 2016 = BR} PETROBRAS
Slide 2: Index
INDEX Invitation 2 Notice of Meeting 3 Items to be discussed in the Extraordinary General Meeting (EGM): I. Election of a member of the Board of Directors by minority shareholders, holding common shares 7 ‘Annex | Information concerning the member nominated to the Board of Directors, in accordance w
Slide 3: Marcelo Mesquita de Siqueira Filho
Marcelo Mesquita de Siqueira Filho, Brazilian, Economist. He has a degree in Economics from PUC-Rio, in French Studies from Nancy University II and an OPM (Owner/President Management) from Harvard, he is a co-founder partner of Leblon Equities (since 2008) and co-manager of equity funds and of Priva
Slide 4: Santander fairness opinion
@& Santander ‘Sao Paulo, 06 de setembro de 2016 Ao Conselho de Administragao da Petroleo Brasileiro S.A. - Petrobras Senhores, © Banco Santander (Brasil) S.A. (“Santander”) foi contratado pela Petréleo Brasileiro S.A. - Petrobras (“Contratante”), no Ambito do Contrato para Prestagiio de Servigos de
Slide 5: Santander fairness opinion (cont'd)
&d Santander administrar esses conflitos, nao estando o Santander obrigado a restringir quaisquer de suas atividades conduzidas no curso normal de seus negécios. Santander ressalta que recebera uma remuneragiio da Contratante para emissio da presente fairness opinion e que, especificamente com relag
Slide 6: Santander fairness opinion (cont'd)
® Santander b) informagdes comerciais, financeiras e operacionais histéricas preparadas pela Companhia ¢ encaminhadas pela Companhia e pela Contratante telativas a Companhia; e ©) contratos societirios ¢ operacionais nos quais a Contratante é parte do contrato, incluindo, mas néo se limitando a, con
Slide 7: Santander fairness opinion (cont'd)
@& Santander Operagdo. Consequentemente, no temos condigdes de avaliar 0 impacto de qualquer evento, inclusive, subsequente que venha a se materializar posteriormente a data das InformagGes por nés analisadas, ou, ainda, de qualquer evento ja ocortido ¢ cujos efeitos no se encontrem refletidos nas I
Slide 8: Santander fairness opinion (cont'd)
> Santander O Santander assumiu como verdadeiras, corretas e completas todas as Informagées, sem qualquer verificagéio independente (nem assumiu responsabilidade ou obrigagao de realizar qualquer verificagao independente) ou realizagao de auditoria, seja de natureza legal, contabil ou financeira nas
Slide 9: Santander fairness opinion (cont'd)
@& Santander € as informagGes discutidas com a administrago da Contratante e a administragdo da Companhia) utilizadas para a elaboragio da Avaliago, tampouco assume qualquer responsabilidade ou obrigagdo de indenizar em raziio do contetido dessas Informagies, as quais sio de unica e exclusiva respon
Slide 10: Santander fairness opinion (cont'd)
utilizadas na Avaliagao, podendo tais analises, relatorios e publicagdes conter concludes significativamente diversas das descritas na Avaliago € nesta fairness opinion. No curso normal de suas atividades, o Santander poderé fomnecer servigos de banco de investimento e outros servigos financeiros pa
Slide 11: Credit Agricole fairness opinion
©? CREDIT AGRICOLE CORPORATE & INVESTMENT BANK To the Board of Directors of Petréleo Brasileiro S.A. September 12", 2016 Petrdleo Brasileiro SA ‘Ay. Repiiblica do Chile, 65 Rio de Janeiro 20031-912 Brazil Dear Sirs: We understand that Petréleo Brasileiro S.A. (‘Petrobras’) is negotiating the sale of
Slide 12: Credit Agricole fairness opinion (cont'd)
Dé CREDIT AGRICOLE CORPORATE & INVESTMENT BANK In addition, we have held discussions with members of Petrobras’ acquisitions and divestments team, regarding their views for the existing business of the Company and its future perspectives. In connection with our review, we have not assumed any respon
Slide 13: Credit Agricole fairness opinion (cont'd)
©? CREDIT AGRICOLE CORPORATE & INVESTMENT BANK It is agreed that this letter is for the exclusive use of the Board of Directors of Petrobras only in connection with its consideration of the Proposed Acquisition. This letter is not issued pursuant to or as a result of the existence of any regulation,
Slide 14: Project Noronha Valuation Presentation
STRICTLY PRIVATE AND CONFIDENTIAL PROJECT NORONHA VALUATION PRESENTATION July 22"4, 2016 JPMorgan 23
Slide 15: Project Noronha - Valuation Presentation disclaimer
LUATION PRESENTATION PROJECT NORONHA - VA IDENTIAL This presentation was prepared exclusively for the benefit and internal use of Petréleo Brasileiro S.A (the “Company’) in order to assist the Company in evaluating, on a preliminary basis, the feasibility of a possible transaction or transactions an
Slide 16: Introduction
CONFIDENTIAL ntroduction = Petréleo Brasileiro S.A. (“Petrobras” or the “Company’) has engaged J.P. Morgan to provide a valuation presentation ("Valuation Report’) of Nova Transportadora do Sudeste S.A. ("NTS") to its Senior Management and Board of Directors = The Valuation Report is exclusively for
Slide 17: NTS overview
PROJECT NORONHA - VALUATION PRESENTATION CONFIDENTIAL NTS overview = NTSis a wholly owned subsidiary of Petrobras and operates in the gas = mm 2B ‘transportation industry in Brazil Its network includes: '= 22interconnected gas pipelines with approximately 2,048km of extension in the ‘Southeast regio
Slide 18: NTS financial projections
PROJECT NORONHA - VALUATION PRESENTATION CONFIDENTIAL NTS financial projections Key assumptions based on management estimates Projection period ® From 2016 to 2041 (end of the Authorization period) = Volumes and tarifs are estimated by GTA = Existing GTAS: ~ Estimates from 2016 until the expiration
Slide 19: NTS financial projections (cont'd) - average tariff by GTA
PROJECT NORONHA - VALUATION PRESENTATION CONFIDENTIAL NTS financial projections (cont'd) Average tariff by GTA (R$ / ‘000 m3) 102 w\ ‘Authorization Maiha SE [ea 266 906 CAG ends GTA u = = 7 Bon 2M ST WE ‘7E 1E 10E 2G 2G 2G 26 WE 25 20E 27E 288 WE WE ME HE ME ME WE ME WE ME WE AOE “IE “18e—S1E CAGE A
Slide 20: NTS financial projections (cont'd) - net revenues
PROJECT NORONHA - VALUATION PRESENTATION CONFIDENTIAL NTS financial projections (cont'd) Net revenues (R$mm and yly % growth) 129% 42m 14% g2y ST 51% 49% 42% 40K SOE 49% APH 0 45% AOE ADE 11%, 42% 45% 45% 48% 42m 45% 40% (197%) 31%) 7 ener) sa 5720 47 8200 ‘soma 8308 6305 nes suc sen 2084 a9 4100440
Slide 21: NTS summary projections
VALUATION PRESENTATION PROJECT NORONHA NTS financial projections (cont'd) CONFIDENTIAL NTS summary projections‘ (R$mm) istrcalpeiod Projection pri nRsnm BoIGA 014A 201A “OIGE—2017E OTB —2010E MBOE DIE | ome <0ORE DOME OOS OMOE‘OETE HORE Net revenues 2006 24m 2551 3854 39614406 4401 GIG Ant S047 zm 5
Slide 22: NTS summary projections (cont'd)
PROJECT NORONHA - VALUATION PRESENTATION NTS financial projections (cont’d) CONFIDENTIAL NTS summary projections’ (RSmm) Priston ped nine wome 2000 aE moe OSE aE E | DOME TOTEM OE DOE ZONE = ee rw 9) 42% 1M RH) «9TH «ASH A SH te OO) TEN) ross profit ry eT ee a ee eT? Margin (ot rere) 652% 600% © TAM
Slide 23: Valuation methodology overview
- VALUATION PRESENTATION PROJECT NORONHA CONFIDENTIAL Valuation methodology overview Valuation framework and methodologies overview = NTS valuation is based on the information and financial projections provided by Petrobras management to J.P. Morgan = J.P. Morgan analysis is based on the discounted
Slide 24: Discounted cash flow analysis
PROJECT NORONHA - VALUATION PRESENTATION CONFIDENTIAL Discounted cash flow analysis Free cash flow (R$mm, unless otherwise noted) on = sue ne ae eae I eae tt Net revere gost) aa61 4185 cdot aste att ser sz sss 70a aun uss oto ‘% growth -| 02% 57% 51% 49% 42% 49% 50% 49% 42% (19.1%) 48% (472%) om sin
Slide 25: Agenda - Appendix
- VALUATION PRESENTATION PROJECT NORONHA Agenda PETROBRAS Page Appendix "1 = NTS — Weighted Average Cost of Capital (“WACC”) analysis " CONFIDENTIAL JPMorgan 34
Slide 26: NTS - Weighted Average Cost of Capital analysis
APPENDIX NTS - Weighted Average Cost of Capital (“WWACC”) analysis Discount rate summary (US$ nominal terms) Low High Risk-free rate! 16% Equity risk premiu 6.75% - 775% Levered beta 110 = 1.50 Country risk premium 37% = 37% Cost of equity 12.7% - 16.9% Pre-tax cost of debt 24% Post tax cost of debt
Slide 27: Bradesco BBI fairness opinion
im) Bradesco BB! ‘rinihe bo Branesco 88! Ao Consetho de Administragao Pettoleo Brasileiro S.A, ~ PETROBRAS Avenida Republica do Chile, 65, 22° Andar Rio de Janeiro ~ RJ Brasil Estritamente Privado e Confidencial ‘So Paulo, 12 de setembro de 2016. Prezados Senhores: 1 © Banco Bradesco BBI S.A. (Brade
Slide 28: Bradesco BBI opinion (cont'd)
im) Bradesco BB! OpwwiKo bo BRADESCO BBI 5. Adicionalmente, conduzimos interacdes com executives € administradores da Companhia a respeito: (i) da Transagao e do egocio; i) do objeto social da NTS; (i) das operagles e ativos atuais da NTS © como estes estarao arganizados na data da Transagéo; (iv) d
Slide 29: Bradesco BBI opinion (cont'd)
im) Bradesco 8B! Opwwiko 00 BRADESCO BBI 13. O Bradesco BB! deciara expressamente nao ter qualquer responsabilidade de atualizar e/ou informar a Compania. o Consércio Brookfield e/ou a NTS (ou qualquer outra parte envolvida na Transaco) sobre qualquer desenvolvimento ou circunstancia de qualquer tip
Slide 30: Bradesco BBI opinion (cont'd)
if) Bradesco 8B! ‘OFINikO D0 BRADESCO BEI 21, 0 Bradesco B81 sera remunerado pela Companhia em relagao a prestago dos servicos referentes 4 elaboracdo desta Opiniao, sendo que os honorarios devidos pela Companhia ao Bradesco BEI nao esto de qualquer forma vinculados ou sujeitos 20, ou de qualquer fo
Slide 31: Bylaws Comparison Chart - Board of Directors
Comparison Chart Previous version Proposed version ‘Justification: Art. 18- The Board of Directors will consist of between 5 (five) and 10 (ten) members. General Shareholders’ Meetings will be responsible for appointing from among them the Chairman of the Board. The term of office of all members may
Slide 32: Bylaws Article 20 - Board of Executive Officers
Art, 20- The Board of Executive Officers shall comprise a Chief Executive Officer, chosen by the Board of Directors from among the members, and 7 (seven) Executive Officers elected by the Board of Directors from among Brazilians residing in the country, with a term of office that may not be longer t
Slide 33: Bylaws Article 21 - Management appointments
Art. 21- Appointments to management roles at the Company will comply with the conditions imposed by article 147 and complemented by those provided for in article 162 of Law 6,404 of 1976. Section 1- People who have ascendants, descendants or collateral relatives in positions on the Company's Board o
Slide 34: Bylaws Article 27
‘Art. 27- The Chief Executive Officer and the] Art.27-(..) Executive Officers may not be absent from) Section 1 - The Chief Executive Officer and their office, annually, for more than 30 (thirty) the Executive Directors shall be entitled days, consecutives or not, without being! annually to 30 (thir
Slide 35: Bylaws Article 29
‘Art. 29- (..) II- approving strategic plans, as well as the respective multi-year plans and annual spending and investment programs; (.) ‘Art. 29- (..) I> approving strategic plans proposed by the Executive Board, as-wall-as the respective plurennials plans, as well the plans and annual spending an
Slide 36: Bylaws Article 29 (cont'd)
fart.29-(.) Xil-approve and disseminate Annual Letter and_the Corporate Governance Letter, as provided by Law No. 13303/16. Section 1: The establishment of the human resources policy referred to in part Vil may not involve the participation of the board member who represents employees, if the discus
Slide 37: Bylaws - Board of Directors responsibilities
Art. 30 - It is incumbent, even, upon the Boar of Directors to deliberate about the followin: matters: I~ The Basic Organizational Plan and it amendments as well as the assignment to th: members of Executive Officers, upon the Chie Executive Office's proposal, of _dutie corresponding to the contact
Slide 38: Bylaws Article 33
B= 33_— The Executive Board and it jembers are responsible for_managing th [Company's business, in accordance with th in, objectives, strategies and_quideline kstablished by the Board of Directors. ~) ‘Article 33 - The Executive Board and its members are responsible for managing the Company's busine
Slide 39: Bylaws Article 34
Art. 34- Responsibilities of the Executive Board: I- Evaluate and submit for the approval of the Board of Directors: () Article 34 - Responsibilities of the Executive Board: b) the Company's strategic plan, the respective pluriannual plans, as well _as the plans and _annual_spending_and investment _
Slide 40: Bylaws Article 34 (cont'd)
) the manuals and corporate rules of jovernance, feF accounting, finance, ersonnel administration, the procurement nd execution of construction work and ervices, the supply and disposal of be and equipment, operations and ther corporate rules necessary matters ‘or the guidance of Company operations;
Slide 41: Bylaws Article 34 (cont'd)
‘) the creation and winding up of non- statutory committees, reporting to the Executive Board or its members, approving the respective operating rules, duties and limits of authority for action; i) the approval-ef the amount above which \cts, contracts or operations, although the ‘esponsibility of t
Slide 42: Bylaws - Executive Board meetings and committees
rt 35 - The Board of Executive Officers shall ‘old a regular meeting once a week with th jority of its membership, among whom thi hief Executive Officer or his deputy, and in al pecial meeting upon call by the Chief Executi ‘ ficer or of two-thirds of the Executive Fficers. ele paragraph - The membe
Slide 43: Bylaws Article 35
Art. 35-(...) Art. 35-(..) Section 3: The advice of the Technical Statutory Committees is not binding to the Executive Board or its members, as appropriate, but will be a necessary condition for the examination and resolution of the matter within their duties-Theadviee-giver-by the Sinton Dachnient
Slide 44: Bylaws Article 36 - Individual responsibilities
[Art. 36- Individual responsibilities: Section 1- The Chief Executive Officer is responsible for: Executive Board, the _ technical-economi assessment criteria for investment projects, with] Article 36 — Individual responsibilitie: Section 1 - The Chief Execu responsible for: 1 to elaborate and submi
Slide 45: Bylaws - Director responsibilities
‘Art. 36 - Section 3- The Director for Exploration & Production is responsible f () Section 5- The Chi Investor Rel: ) Financial Officer and ctor is responsible for: Section 3 — The Executive Exploration & Production is responsible for: I- coordinating projects to optimize assets in on shore, shallo
Slide 46: Bylaws Section 6 - Director responsibilities
Section 6- The Director for Human Resources, Health, Environment, Safety and Services is responsible for: () Section 7- The Director for Governance, Risk and Compliance is responsible for: () MILVI- coordinating the processes of acquiring Eo disposing of equity stakes held by the ‘ompany, in accorda
Slide 47: Bylaws Section 7 - Governance, Risk and Compliance
Section 7- The Director for Governance, Risk and Compliance is responsible for: () Section 8 - The Executive Director for Strategy, Organization and Management System is responsible for: =) Ikcoordinating the management of compliance and necessary internal controls, including fraud and corruption as
Slide 48: Bylaws Section 8 - Strategy and Organization
Section 8 - The Executive Director for Strategy, Organization and Management System is responsible for: ) Section 8 - The Executive Director for Strategy, Organization and Management System is responsible for: ) ‘oordinate the preparation of the Basic Organization Plan, containing, among others, the
Slide 49: Bylaws Section 9 - CEO and Directors
Section 8 - The Executive Director for Strategy, Organization and Management System is responsible for: (.) Section 9 - The Chief Executive Officer and each Executive Director, within the areas of contact described in the Basic Organizational Plan, are responsible for: () Vik quide and promote the i
Slide 50: Bylaws Article 40 - Extraordinary General Meetings
Article 40 - Extraordinary General Shareholders’ Meetings, in addition to the cases established by law, will take place when convened by the Board of Directors, to deci on subjects of interest to the Company, especially the following: Art. 40- Extraordinary General Shareholders’ Meetings, in additio
Slide 51: Bylaws Article 49 - High-Level Management
Art 49 - The duties of the High-Level Management and the powers and responsibilities of the respective incumbent: shall be defined in the Basic Organizational Plan of the Company. Section 3 - The managerial duties that shall constitute the organizational structure of the Company at all other levels
Slide 52: Bylaws Article 52 - Basic Organizational Plan
Art 52 - The activities of Petrobras shall compl with the Basic Organizational Plan approved by th Board of Directors and shall cover the geners structure and define the nature and th assignments of each body, the reporting| coordination and control relationships required for its operation in accord
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