Tatneft-3 · RUS:TATN
Tatneft-3 — Tatneft — Investor Presentation (May 2011)
19 slides from Tatneft-3's investor presentation, May 2011
Slide 1: Presentation to Investors May 2011
Presentation to Investors May 2011
Slide 2: 1. Operational Update
? TATNEFT 1. Operational Update
Slide 3: Reserve Base and Production
Reserve Base and Production Production dynamics Estimated production forecast, in bbl Proved Producing plus Proved Nonproducing reserves 506 509 510 510 4 000 000 000 ; i = a= eee. 100 000 000 H 10 000 000 ‘ 1 000 000 i 2007 2008 2009 2010 100 000 : eae 93 95 97 99 01 03 0S O7 09 11 13 15 17 19 21 2
Slide 4: Segment earnings Crude oil sales by destination market
Segment earnings Crude oil sales by destination market ooo, 190.6 188.0 191.3 200.3 m Domestic E&P 62,066 90.2% mNon-cis Refining & Marketing 7,160 10.4% ” Petrochemicals (422) -0.6% Total segments earnings 68,804 100% In accordance with US GAAP financial statements as of December 31, 2010 0. 2007 2
Slide 5: 2. TANECO
@ tatNEFT a 2. TANECO
Slide 6: TANECO - Project Overview
TANECO - Project Overview Key points about the proj = New refinery complex in City of Nizhnekamsk, Tatarstan — first large refinery being built in Russia after the dissolution of the USSR = Throughput capacity — 7 million metric tons of crude oil per year (approx. 140 thousand barrels per day) = The
Slide 7: TANECO — Production and Investments
TANECO — Production and Investments In 2010 comprehensive testing of completed units commenced, as well as work to commission facilities and obtain the necessary permits and certifications Commercial operation of the refinery is expected to start from the second half of 2011. The refinery will inclu
Slide 8: TANECO - Further Development of the Project
TANECO - Further Development of the Project = The project's goal is to achieve depth of refining of 97% and refine 100% Carboniferous crude oil = This goal will be achieved through the construction of a deep conversion plant — Phase 2 = The deep conversion plant will use heavy residuals as raw mater
Slide 9: 3. Bitumen (HVO) Production Pilot Project
Slide 10: Overview of Bitumen Production Project
Overview of Bitumen Production Project Project progress = Six pairs of pilot parallel horizontal SAGD-type wells and one horizontal well for CSS (cyclic steam stimulation) completed = Each pilot well produces up to 30 tons (214 bbls) daily = Approx. 27.15 thousand tons (193 Mbbls) of bitumen produce
Slide 11: Bitumen Production Technology
Bitumen Production Technology ¢ o oO £ oO a Steam Chamber °o ° S ———— — <= a roi o fa} V4 Up to 800m > NEFT
Slide 12: Highly Viscous Oil (Bitumen) Resources in Tatarstan
Highly Viscous Oil (Bitumen) Resources in Tatarstan Seen a, ; 7%, Highly prospective * . | Prespectives | a qv TATNEFT 12
Slide 13: 4. Financial Results Overview
Q TAINEFT 4. Financial Results Overview
Slide 14: Consolidated Financial Statements: P&L and Cash Flow
Consolidated Financial Statements: P&L and Cash Flow olidated P&L, in RR bin 2008 2009 2010 Revenues 444.3 380.6 468.0 Costs and other deductions 410.1 311.9 403.9 EBITDA (*) 25.1 82.9 73.7 EBITDA margin 6% 22% 16% Net income 8.4 54.4 46.7 Profit margin on sales 2% 14% 10% Cash flow, in RR bin Chg %
Slide 15: Cost dynamics
Cost dynamics Lifting costs Y-o-Y, RR/bbl Quarterly lifting costs, RR/bbI “Avg 153.5 Avg 172.2 RR/bbl RR/bbl 162.3 151.4 2008 avg 2009 avg 2010 avg 1Q09 2009 3Q09 4Q09.°*1Q10 2Q10 3010 4Q10 EBLifting Costs, RR per bbl -*- Inflation, % Gost per barrel: breakdown", RR/bbE a Lifting Costs, RR per bbl -
Slide 16: Debt Profile
Debt Profile Debt profile, in RR bin Debt reconciliation, in RR bin 120 Debt as of 100 31.12.2010 80 Other debt fl 0 Russian bonds 7.25% p.a. F 60 40 20 2007 2008 2009 2010 lm Long-term debt, net of current portion mlm Short-term debt —®— Net Debt a grewcouns 3Y Tranches - LIBOR + 3.1% on $1.5 bin f
Slide 17: Revenue and Costs: 2010 vs 2009
Revenue and Costs: 2010 vs 2009 RR bin 61 83 7 64 380.6 Increase by 87.4 bin RR 468.0 evenue K Revenue 2009 Crude Oil prices Refined Produces Sales Volumes Petrochemicals and Revenue 2010 prices Other sales 17.4 3.3 10.2 15.4 45.7 a Costs i Increase by 92 bIn RR Costs 2009 Export Duties UPT (increas
Slide 18: EBITDA and Net Income per bbl: 2010 vs 2009
EBITDA and Net Income per bbl: 2010 vs 2009 a (334.8) || | (93.4) 15.5 ‘eos (15.5) (422) (178) (15.3) EBITDA, <=> RR/bbl EBITDA 2009 _—- Revenue Taxes Purchases Transport OPEX SGA Other EBITDA 2010 (334.8 ) || (934) (55) Mal Net Income, RR/bbl (422) (178) 0) (58) 12 NI 2009 Revenue Taxes Purchases T
Slide 19: Important Notice
Important Notice FOR INTERNATIONAL INVESTORS THIS PRESENTATION IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONST