Rosneft · RUS:ROSN
Rosneft — Investor Day (April 2013)
14 slides from Rosneft's investor day presentation, Apr 23, 2013
Slide 1: Rosneft Investor Day: Financials
ROSNEFT INVESTOR DAY FINANCIALS Svyatoslav y I. Slavinskiy y April 23, 2013
Slide 2: TNK-BP Acquisition: Financing
TNK-BP Acquisition: Financing Sources Uses Cash equivalents and short-term Existing cash financial assets on the balance sheet 50% interest in resources of Rosneft amounted to over Total consideration of $27.5 bn TNK-BP $12.6 bn(1) (2), as of Dec-31, 2012 International $16.7 bn in cash L d b L
Slide 3: Pro forma Income Statement
Pro forma Income Statement $ bn 12M 2012 Revenues 159.2 Costs and expenses (139.8) Operating profit 19.4 Other income (net) 2.1 Profit before taxes 21.5 Income tax (4.8) Net Income 16.7 EBITDA 33.4 EBITDA margin 21.0% Net income margin 10.5% * The information presented above is prepared for illustra
Slide 4: Exercising Potential Synergies
Exercising Potential Synergies Total value of synergies, $ bn Around 24% of $10 bn of total Total: $10 bn synergies is expected to be obtained in 3 years from now CAPEX savings account for $3.4 bn of the total synergies Increase of operating efficiency 7.6 to bring additional $6.6 bn of the to
Slide 5: Efficient Cost Control
Efficient Cost Control Lifting costs, $ bn SGA, $ bn (0.2) (0.15) 5.8 4.7 1.8 34 3.4 5.6 4.5 29 2.9 2.4 as off now after f integration i i as off now after f integration i i Rosneft TNK-BP Rosneft TNK-BP Potential synergies y g g initiatives will enable to reduce and cost saving controllable expense
Slide 6: CAPEX and Free Cash Flow
CAPEX and Free Cash Flow Steady production growth Opportunity to reallocate goods and enjoy higher netbacks OCF Able to reduce expenses quickly in order to meet existing commitments it t RUR/USD exchange rate serves an effective defensive mechanism Key priorities: complete refinery moderni
Slide 7: Credit profile
Credit profile Dec 31, 2012(1) Debt Structure Total debt debt, $ bn 76 6 76.6 7.5% 3.5% Net Debt, $ bn 66.8 Net debt / LTM EBITDA 0 2.0x Credit ratings 89.0% S&P BBB (upgrade as of 16.04.2013) USD Euro RUB Mood ’s Moody’s Âàà1 0.6% 12.7% Fitch BBB 86.7% Bonds Loans Other 7 Note: (1) Based on pro for
Slide 8: Maturity Profile
Maturity Profile Debt maturity profile, $ bn To T extend t d the th company’s ’ debt d bt profile by refinancing bridge-loans with LT instruments 15 9 15.9 16 2 16.2 16 0 16.0 Develop long-term off-take contacts funding working capital Unique access to debt capital markets: • Eurobonds E b d a
Slide 9: Liquidity Sources
Liquidity Sources Eurobonds $ $10 bn p program g registered, g , two tranches of $ $1 and $ $2 bn issued expiring 2017 and 2022 respectively RUB bonds RUB 50 bn raised: two tranches of RUB 20 bn and 30 bn expiring p g 2018 and 2017 respectively p y Prepayment $7.5 $7 5 bn called ($10 bn committ
Slide 10: Key Financial Priorities
Key Financial Priorities Below • Cost saving g i fl i inflation Managing •Managing SGA SGA and production and production costs costs Optimize • CAPEX control t l Review •Review current current projectproject portfolio portfolio to increaseto increase profitability profitability Neutral to • Free cas
Slide 11: Integration: Key Principles
Integration: Key Principles Full control o o over o TNK-BP op operations o with minimal changes g too structure and governance starting from Day 1 Ensuring all business units going concern New management system retaining most qualified personnel Maximizing identified synergies Coordinating
Slide 12: Integration: Timeline
Integration: Timeline Day 1 July 1, 2013 January 1, 2014 Preparation Detailed planning Developing new Personnel Screening Integration of business units HQ structure Key business All business New business model ... processes optimized processes optimized Realizing g and tracking g S Synergies i ident
Slide 13: Integration: Interim Results
Integration: Interim Results Detailed integration plan developed, key managers appointed Draft Company structure envisaging: • Higher responsibility of business divisions for financial performance and efficiency; • Client focused HR and Legal divisions; • Improved investment spending procedures;
Slide 14: Important Notice
Important Notice The information contained herein has been prepared by the Company. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on information obtained from sources believed to be reliable