Deutsche Rohstoff Ag · XETR:DR0
Deutsche Rohstoff — Shareholder Meeting (June 2024)
62 slides from Deutsche Rohstoff's shareholder meeting presentation, June 2024
Slide 1: Presentation Annual General Meeting 2024
AA Deutsche Rohstoff Presentation Annual General Meeting 2024
Slide 2: Disclaimer
Disclaimer This document is an abridged presentation of important facts of Deutsche Rohstoff AG, Mannheim (DRAG; Company). The document has been prepared and published in its entirety by DRAG. This presentation is not to be construed as investment advice by the Company. This presentation does not co
Slide 3: 2023 profitability and stability continue
2023 profitability and stability continue Diversified production base ® Core business oil & gas production in the USA further expanded ® 2024 will be the 3rd year in a row with EBITDA above EUR 130m . . . oo Wyoming @ Production continues to rise significantly Colorado ® EUR 500m balance sheet total
Slide 4: Deutsche Rohstoff Highlights
Deutsche Rohstoff Highlights 12,762 s0EPp cuR65.2m Record production in 2023 Record profit in 2023 Last year: 9,600 BOEPD (+33 %) Last year: EUR 60.8m (+7 %) EUR 198.4 eur 100m Investment record 2023 Bond issue Last year: EUR 82.9m (+139 %) 7.5 % coupon ceuR208.4m EuR 15.6m Equity 1924 Record shareh
Slide 5: Oil & Gas annual production of 4.7m BOE - how much energy is that?
Oil & Gas annual production of 4.7m BOE - how much energy is that? AA Deutsche Rohstoff ~4.7m BOE Heating for In 2023 Annual fuel 180,000 consumption of Houses per year approx. 325,000 cars Sources: Exxon Mobil, DRAGresearch GASAG Group “Assuming I kh for one cubic meter of gas, houses with an avera
Slide 6: Investments lead to continuous increase in production and EBITDA
Investments lead to continuous increase in production and EBITDA Group production, EBITDA and CAPEX in EURm Mol Micas EBITDA 24 66 139 158 160-180 125-145 CAPEX 49 29 72 149 145-165 100-110 20 18 mBOEPD 14.7-15.7 16 mBOEPD 14 28 2 12 mBOEPD Bio 96 i mBOEPD 8 7 6 mBOEPD 4.2 4 ; = 0 2020 2021 2022 202
Slide 7: Reserve Replacement - reserve value increases despite high production
“Reserve Replacement” - reserve value increases despite high production Development of the net present value of oil and gas reserves! in USDm & production volume per day 14.7 - 15.7 3 Mm Proven Producing mami Proven Probable ——mBOEPD 2 c o a o @ w o oa z 7 o ir} 368 S 45 4.2 9 2 o > 221 2 c a s 143
Slide 8: Stock and bond
Stock and bond
Slide 9: Stock facts & highlights
Stock facts & highlights Share price increase 20247 Dividend 2024e +13% 1.75 cur Prior-year period: +10% Last year: EUR 1.30 (+35%) Closing price 2023! P/E-Ratio current? 32.45 cur 2.9x Last year: EUR 26.00 (+25%) Last year: 2.4x (+21%) Market capitalization? P/B-Ratio current? EUR 183.2m 0.98x Last
Slide 10: The shareholder structure has been stable for years
The shareholder structure has been stable for years Private individuals Management >10,000 shares i Legal entities Ef Number of shares Market capitalization Share capital Stock exchanges ISIN/WKN Stock exchange segment Designated Sponsor Vv Private individuals < 10,000 shares June 14,2024 5,005,438
Slide 11: EUR 15.6 million - dividend, cash settlement and share buyback
EUR 15.6 million - dividend, cash settlement and share buyback Dividend policy and share price performance Shareholder return package 2024 Upside consensus ‘May 13, 24)* — Largest shareholder return package in the ~ 4.45 EUR —_ company's history EUR 15.6m Dividend per share or EUR 3.15 per share — P
Slide 12: Share price performance since listing in 2010
Share price performance since listing in 2010 56.70 (24.04.24) m, mwb research 56.50 (13.05.24) «fo “epler Share price performance since IPO* in % 400% 51.00 (08.05.24) rst Belin 00% 288% Since 2010 200% 100% 0% 100% 200% s s s s ” “Initial public offering - IPO AA Deutsche Rohstoff | 12
Slide 13: Strong share price performance compared to diverse peer groups
Strong share price performance compared to diverse peer groups Share price performance incl. dividend since Jan. 2019 in % 250% 200% < 166%Deutsche Rohstoff 150% 4 122% D.J Oil E&P inx 100% 475% DAX “Wi <4 67% WTI Oil <4 58% Big cap peers 4.41% Small cap peers 50% 50% * Big cap. Peer Group Median co
Slide 14: Development of DRAG compared to other small-cap companies
Development of DRAG compared to other small-cap companies Share price performance incl. dividend since Jan. 2019 in % 200% <4 166% Deutsche Rohstoff 150% 154% Riley Exploration Permian 100% <4 55% SilverBow Resources <q 48% Vitesse Energy* <q 36% Primeenergy Resources 50% fay “2% Evolution Petroleum
Slide 15: Decoupling from the peer group in 2021 & start of growth
Decoupling from the peer group in 2021 & start of growth i .S. il Explorati DRAG share price over the course of the year, based on the first day of each year == Deutsche Rohstoff. === pow tones is Select Oil Exploration & 2019 2020 2021 2022 2023 2024 +9% am 44% 7 +139% a +26% am +25% +13% 250% 200%
Slide 16: Undervaluation compared to other oil and gas companies
Undervaluation compared to other oil and gas companies Deutsche Rohstoff Small Cap Market capitalization EUR 187m <EURIb Enterprise Value EUR 285m = @ Production BOEPD 1Q2024 14.9 mBOEPD 21.7 MBOEPD Big Cap > EUR 1b ~880 mBOEPD P/E 2023 median 2.90 5.2 EV/EBITDA 2023 median 1.80 3.9 EV/BOEPD 1924 Me
Slide 17: Bonds - price development and placement
Bonds - price development and placement Successful placement of the bond 23/28 Price performance of the bond since issue - Placed in September 2023 112% - Fully placed for the first time with strong oversubscription 109.25% - Strong price performance 109% Attractive bond maturity profile 106% 19/24
Slide 18: Oil market
Oil market einai
Slide 19: The oil price has increased since the start of 2019
The oil price has increased by around 67 % since the start of 2019 Share price performance incl. dividend since Jan. 2019 in % 250% COVID-19 crisis 200% 166%Deutsche Rohstoff 150% 100% 67% WTI Oil 50% 0% -50% 100% s a s x s s * Big cap. Peer Group Median consists of : OXY; DVN; EOG; HES; BP; SHEL; F
Slide 20: Oil demand continues to grow - road, chemicals and aviation are the drivers
Oil demand continues to grow - road, chemicals and aviation are the drivers Demand for oil has risen in 23 of the last 25 years 20 m0 100 mmBOPD 90 80 70 1990 Financial Corona crisis crisis - - 7 , 7 4 4 JOD cvcecheccececececccefocecececececesdoce Moccececechoccscscececsespooseees 2024e 102 mmBOPD 2
Slide 21: This is another reason why we are investing in the USA
This is another reason why we are investing in the USA Cumulative GDP growth since 2019 in percent Comment 12.0 -. NB USA — Deutschland 10.0 a — Robust growth in the USA 91 8.0 — — Growth path not abandoned despite 66 Covid19 crisis ° — +115 4s — Forecast trend: USA mostly better 4.0 j than expected
Slide 22: Operational development
Operational development
Slide 23: Deutsche Rohstoff - Highlights 2023
Deutsche Rohstoff - Highlights 2023 May 2023 1876 acquires pipeline to secure further development of acreage through transportation capacity September 2023 109. Oversubscribed bond placement of EUR 100m EUR 100m Bond November 2023 Prime Lithium reserves an area in a chemical park and establishes an
Slide 24: We produce in two US states with a high level of activity
We produce in two US states with a high level of activity SOUTH DAKOTA oe; Powder River Basin ah ae Oe SS 18764 aos WYOMING ; | es) WYOMING BSS Bell corcrave wats (¢) SALT CREEK Discas NEBRASKA TA @ 1876 @ asazceeex @ -EESTER aa F re Resources OTL+GAS COLORADO AA Deutsche Rohstoff | 24
Slide 25: Powder River Basin (PRB), 12,500 wells drilled since 1970
Powder River Basin (PRB), 12,500 wells drilled since 1970 The Powder River Basin Our area of activity - South of the Basin jaF 12,500 Producing wells ctive drilling rigs {| odbberceee 2 soca 1876 OIGAS me! ‘7 RESOURCES AA Deutsche Rohstoff | 25
Slide 26: Powder River Basin 2023 & 2024
Powder River Basin 2023 & 2024 (SALT CREEK, & 1876 OIL+GAS. RESOURCES | | l . | Wyonting — 9wells, Lost Springs (3), Ethel (4) & — Huckleberry & Woody Pad Online, Tina Pad (2) Lund Pad since 2022 — William Pad drilled = Start of drilling at Bright Rock — Acquisition Midst Pipeli — 3wells, 1 of which
Slide 27: 2023 drilling program in Wyoming yields positive results
2023 drilling program in Wyoming yields positive results Production from 19 Niobrara wells commissioned in 2023 Good results from the drilling program 200,000 — 19 Niobrara wells were put into operation Production data =-- Forecast in 2023 — Drilled by US subsidiaries + Oxy JV 160,000 — Average perf
Slide 28: Part of the best Niobrara wells in PRB 2023
Part of the best Niobrara wells in PRB 2023 Cumulative oil production from Niobrara wells coming online in PRB in 2023 Leading productivity 120,000 Peer operator 2023! « gare genre av? 90,000 3 TA S y 5 fA = 60,000 Fe 30,000 1 2 3 4 5 6 7 Production months In 2023, the US subsidiaries and Oxy JV com
Slide 29: Development of an oil & gas well in Wyoming
Development of an oil & gas well* in Wyoming Permit > Drilling > 6-12 months Drilling requires the lease of extraction rights “Federal Permits" required High environmental regulations & breeding seasons to be observed 2 weeks Drilling process very short High costs of USD 4m. Specialized equipment, c
Slide 30: Capex-structure of an oil & gas well
Capex-structure of an oil & gas well* Drilling USD 4m Location Earthworks, leveling the USD 0.1m . surface and laying the road im . on the site Drilling costs 8 ] = Awell takes 10 to 15 days USD 2.8m todrill Steel pipes with different diameters used inside the oil well Completion USD 5.2m * Example
Slide 31: Development speed and production process
Development speed and production process Production development since 2019 20 Drivers Cash flow & IRR — Capex per well* USD 10m vs. USD 11m Stable production at a high level — Reserve per well 550-600k BO vs. 500k BO 15 ee | — Lower OPEX and lower overhead costs 2024: — Production at ~15,000 BOEPD —
Slide 32: Development speed and production process
Development speed and production process rN @ Base Target CAPEX/Drilling USD Tim UsD10m Vv EUR - Oil reserve of the well 500,000 550,000 & 600,000 Return -IRR 31% 51% 85% Payback (years) 2.8 19 1.4 Assumptions: WTI 75 USD/BBL, HenryHub 4 USD/MMBTU, OPEX/BO ~10 USD/BOE, royalties 18% The individual a
Slide 33: Strong hedge book - 1.8m BO hedged at 74.8 USD/BBL
Strong hedge book - 1.8m BO hedged at 74.8 USD/BBL Hedged volume in barrels Value of hedges: 493,500 wonoo0 USD 50 WTI-> USD 45m USD 40 WTI-> USD 63m 311,000 248,500 TEED 124,000 [| = Qa Q3 Q4 Qi Qa Q3 Q4 2024 2024 2024 2025 2025 2025 2025 TOTAL Q2 Q3 Q4 Qi Q2 Q3 Q4 HEDGES 2024 2024 2024 2025 2025 2
Slide 34: Reserve category and product split
34 PROB 8% PROB PUD 6% 17% PUD 28% PD 66% PD 75% NGL 12% NGL 14% Gas 16% Gas 23% Öl 63% Öl 72%
Slide 35: Reserves as of December 31, 2023
Reserves as af December 31, 2023! Reserves as of December 31, 2023 High oil price sen: ity Eloved Geb teat — Anincrease in the long-term oil price from USD 60 inUsDbm me manne Proved Probable to USD 80 INTEREEEEE the value of the reserves by BOE in million 189 12.5 314 ng 432 USD 375 million Revenue
Slide 36: ESG
ESG
Slide 37: ESG-Framework
ESG-Framework Health and Safety The health and safety of our employees and partners is our top priority No accidents at work among our employees in recent years aia Environment & population Commitment to the protection of people, the environment and wildlife beyond legal requirements Installation of
Slide 38: ESG - High standards for the operation in the USA
ESG - High standards for the operation in the USA We are committed to sustainable and successful growth, for a secure energy supply Approval & operation of wells — &SG reporting, federal states and Bureau of Land Management — Ongoing communication with the authorities Numerous authorities & partners
Slide 39: Metals
Metals einai
Slide 40: Pillars of the metal sector
3 pillars of the metal sector Metals segment ~6-7% of total assets/30+m Euro - Attractive opportunities from battery sector & metals 2x Tungsten Almonty Industries A amon — 13.11% share since 2014 due to sale ofa mine — Tungsten producer in Portugal > Lithium Prime Lithium AG primelithium Share 85%
Slide 41: Almonty - leading tungsten producer in our portfolio
Almonty - leading tungsten producer in our portfolio A aumionny Facts Producing mine — DRAG holds 13.11% plus loans amounting to approx. EUR 15m — Panasqueira, Portugal — With the construction of the Sangdong mine in South ’ Korea, Almonty aims to become the largest tungsten producer outside China P
Slide 42: Prime Lithium AG
Prime Lithium AG primeLithium LJ Lithium project with a focus on electromobility — Focus on the production of battery-ready lithium hydroxide from hard rock, spodumene — Prime Lithium has assembled a team of international experts in the lithium and chemical industry — The aim is the technologically
Slide 43: Financials
Financials einai
Slide 44: Highlights Group figures 2023
Highlights Group figures 2023 Record revenue Record EBITDA Record equity 19.2 158.3 3900 a +14% —q = +42% ——y 2022 2023 2022 2023 2022 2023 — Production up 33% to 12,762 BOEPD — EBITDA margin over 80% — Net profit of EUR 65.2m (+7%) strengthens substance — Growth despite oil/gas price and — Record i
Slide 45: Produced volume and realized prices
Produced volume and realized prices Volume by product a in thousands Realized price after hedges in USD EUR/USD & USD/EUR exchange rate é 39%) pee] ales 7659 7391 : 437% Hoon Hon > at a ms | — 2,557 ue ue 1. os \ " 480 ats 1,861 [| LI poe BOE BO Oil Gas USD per1EUR USD per1EUR — Production increases
Slide 46: Revenue share by product and volume by region
Revenue share by product and volume by region ‘Gi Revenue by product @ Revenue share (% Revenue share in EURm per state in % by product in % +9% +2%P ~33%P [ q | | aaa M02 a1%P 75% W202 53% 55% 2023 1 2023 wn 4 46% 178.5 om 42% 13% sa = Oil Gas & NGL Wyoming Colorado Gas & NGL — Oil revenue grow by
Slide 47: Consolidated income statement
Consolidated income statement EURm 2023 + in% 2022 2021 2020 2019 Revenue 196.7 19% 165.4 73.3 38.7 41.2 Other operating income 20.6 -21% 259 23.0 77 4.3 Cost of materials 34.3 13% 30.4 18.1 11.6 13 Personnel expenses 10.3 59% 6.5 5.1 3.6 45 Other expenses 14.4 -6% 15.3 7.0 7.2 71 EBITDA 158.3 14% 1
Slide 48: Consolidated balance sheet
Consolidated balance sheet EURm 2023 +in% 2022 2021 2020 2019 Balance sheet total 493.8 41% 350.3 265.0 206.7 278.9 Intangible assets 23.5 -31% 33.9 29.8 219 22.1 Property, plant and equipment 317.6 65% 192.6 14911 112.8 139.6 Financial assets 30.6 -10% 33.9 33.0 35.7 36.8 Thereof securities classif
Slide 49: Group liquidity
Group liquidity EURm 2023 +in% 2022 2021 2020 2019 Financial liabilities 161.3 41% 109.9 174 128.4 139.1 Cash and cash equivalents 82.2 52% 54.2 23.5 22.8 66.6 Net debt 791 65% 55.7 93.9 105.6 72.5 Net Debt-EBITDA Ratio! 0.5 0.1%P 04 14 44 3.2 Interest coverage ratio” 16.3 -3.9%P. 20.2 10.5 34 39 Op
Slide 50: Reconciliation to IFRS reveals hidden reserves in HGB figures
Reconciliation to IFRS reveals hidden reserves in HGB figures +6% —Y 12.0 208.6 196.7 ei HGB Reconciliation IFRS Gross statement of: — Production taxes — Hedging transactions (realized) Gg EBITDA é€ Group result HGB Reconciliation IFRS HGB Reconciliation IFRS Fair value accounting of - Securities -
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Slide 52: Annual report of Deutsche Rohstoff AG (single financial statement)
Annual report of Deutsche Rohstoff AG (single financial statement) EURm 2023 + in% 2022 2021 2020 2019 Revenue & other operating 1.4 -39% 189 24 84 46 Personnel & other expenses 1.5 30% 8.7 5.3 7.2 61 Income from equity investments 0.0 - 47 0.0 0.0 3.6 Depreciation and amortization 1.0 -82% 5.6 3.0
Slide 53: Share options, authorized capital and share buyback
Share options, authorized capital and share buyback Stock option programs Authorized capital Conditional capital 2018 — 200,000 options issued in the years 2018-2021, 50% each to the Management Board and employees — Execution until 31.12.2023: 7,000 options through shares, 15,000 options through cas
Slide 54: Group key financials as of March 31, 2024
Group key financials as of March 31, 2024 Income statement items Balance sheet & Cash Flow items EURm Q124 Q123 1in% EURm Q124 2023 1in% Revenue 55.6 42.7 30% Balance sheet total 505.5 493.8 2% Other operating income 13 23 -43% Property, plent and 349.6 3176 10% Cost of materials 10.5 8.3 27% equipm
Slide 55: Forecast 2024 & 2025
Forecast 2024 & 2025 Forecast figures Base scenario 2024e Volume - 14,700-15,700 BOEPD 2024e 2025e — Ofwhich 8,800-9,400 BOPD Revenue EURm 210-230 180-200 ATO au 160-180 125445 2024e Share of revenue Underlying assumptions: — Oil 80-85% Oil price USD 75 7S — Gas and NGL 15-20% Gas price USD 2 2 USD/
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56
Slide 57: Glossary
Glossary BO or BBL Barrel of oil or barrel BOE Barrels of oil equivalent (oil, gas, NGLs) BOEPD/BOPD Barrels of oil equivalent per day/barrels of oil per day CAPEX Capital Expenditure (defined as Investing Cash Flow for reasons of simplification) CF Cash Flow DRAG Deutsche Rohstoff AG DSU Drilling s
Slide 58: Glossary
Glossary Market capitalization: Refers to the total market value of a company's outstanding shares Millions of barrels of oil per day Thousand cubic feet Million Miles Million British Thermal Units Metric tons Liquid gas: ethane, propane, butane Organization of the petroleum exporting countries Oper
Slide 59: Appendix
Appendix einai
Slide 60: Income statement
31.12.2023 31.12.2022 31.12.2021 31.12.2020 Income statement KEUR in % KEUR in % KEUR in % KEUR in % 1, REVENUE 196,651 100% 165,439 100% 73,321 100% 38,683 100% 2, INCREASE OR DECREASE IN FINISHED GOODS AND WORK IN PROCESS 29 0% (45) 0% (0% 2 0% 3, OTHER OPERATING INCOME 20,553 10% 25,855 16% 22,97
Slide 61: Consolidated balance sheet
Consolidated balance sheet an2003 su2.2022 22021 12.2020 ASSETS KEUR in% KEUR in% KEUR _in% KEUR in% A. FIXED ASSETS 371,731 75% 260,513 74% 211,841 80% 170,368 82% |. Intangible assets 23547 5% 33,929 10% 29,822 11% 21,892 11% Il, Property, plant and equipment 317,015 64% 192,640 55% 149,056 56% 11
Slide 62: Cash flow statement
+/+ c h Fl 31.12.2023 31.12.2022 31.12.2021 31.12.2020 as ow statement KEUR KEUR KEUR KEUR Result for the period (consolidated net profit/loss for the year including profit/loss attributable to non- OS 06,186 26,357 (16.099) controlling interests) Depreciation / write-ups on fixed assets 63,384 39,7