Slide 1: Oando Plc Half Year Update Call
Oando Plc Half Year Update Call FYE 2015 & Q1 2016 Performance Review Presented by Wale Tinubu - Group Chief Executive www.oandoplc.com
Slide 2: Disclaimer
Disclaimer This presentation includes certain forward looking statements with respect to regulatory authorities) or they may be reasonably anticipated economic This presentation does not constitute an certain development projects, potential collaborative partnerships, results of conditions in the ca
Slide 3: Contents
Contents 03 Asset Overview 05 Operational Update 7 FYE 2015 Financial Highlights 12 Q1 2016 Financial Highlights 17 2016 Corporate Initiatives 22 Strategic Overview 2
Slide 4: Asset Overview
Asset Overview www.oandoplc.com ..the energy to inspire
Slide 5: Asset Overview
Asset Overview Description Operational Assets · Largest indigenous producer in Nigeria · Producing assets: OMLs 60-63, OML 125, OML 56 & OML 13. Exploration & · Development & appraisal: OML 90, OML 122, OML 131, OML 134, UPSTREAM and OML 145, Production · Exploration: OPL 321, OPL 323, OPL 278, OPL
Slide 6: Operational Update
Operational Update www.oandoplc.com ..the energy to inspire
Slide 7: Operational Update
Operational Update Upstream Division Midstream Division Downstream Division Exploration & Supply & Gas & Power Marketing Terminals Production Trading Completed 2015 year-end summary Commenced 8.5km pipeline Entered into strategic partnership Geographical operational Successfully completed tie-ins of
Slide 8: FYE 2015 Financial Highlights
FYE 2015 Financial Highlights www.oandoplc.com
Slide 9: FYE 2015 Profit & Loss Highlights Vs. FYE 2014
FYE 2015 Profit & Loss Highlights Vs. FYE 2014 ..the energy to inspire Turnover EBITDA Loss After Tax -10% -13% 66% N 382 Bn N 47.1Bn N 49.7 Bn N’Million FYE 2015 FYE 2014 Variance Turnover 381,741 425,693 (10%) Gross Margin 77,676 72,308 7% Non-interest Expenses (70,350) (87,471) (20%) Other Operat
Slide 10: Reconciliation of 2014 Actual to Annual Financial Statements
Reconcilation of 2014 Actual to Annual Financial Statements Discontinued 2014 N’Million FYE 2014 Operations as reported Turnover 425,693 332,780 92,912 Gross Margin 72,308 26,273 46,035 Non-interest Expenses (87,471) (37,052) (50,419) Other Operating Income 69,437 (3,376) 66,061 EBITDA 54,274 (7,403
Slide 11: Explanation of Non-interest expenses (including D&A)
Explanation of Non-interest expenses (including D&A) ADMIN EXPENSES N’Million FYE 2015 FYE 2014 Depreciation & Amortization 33,070 22,595 Impairments 13,368 134,541 Other Admin expenses 65,075 81,672 Selling and Marketing expenses 5,275 5,798 Total non-interest expenses 116,788 244,606 IMPAIRMENTS N
Slide 12: Group Balance Sheet Highlights
Group Balance Sheet Highlights Fixed Assets Long Term Receivables Total Borrowings 10% N 615 Bn 34 % N 7.1 Bn -16 % N 400 Bn N’Million FYE 2015 FYE 2014 Variance PPE & Intangibles 614,867 559,747 10% Long term receivables 7,097 5,288 34% Stock 15,159 26,971 (44%) Trade and other Debtors 145,923 133,
Slide 13: Q1 2016 Financial Highlights
Q1 2016 Financial Highlights www.oandoplc.com ..the energy to inspire
Slide 14: Q1 2016 Profit & Loss Highlights Vs. Q1 2015
Q1 2016 Profit & Loss Highlights Vs. Q1 2015 Turnover EBITDA Profit After Tax -34% 2989% 120% N 64.4 Bn N 20.8 Bn N 4.1 Bn N’Million Q1 2016 Q1 2015 Variance Turnover 64,413 97,070 (34%) Gross Margin 9,226 20,458 (55%) Non-interest Expenses (14,220) (23,345) (39%) Other Operating Income 25,757 3,559
Slide 15: Reconciliation of Q1 2015 Actual to Financial Statements
Reconcilation of Q1 2015 Actual to Financial Statements Discontinued Q1 2015 N’Million Q1 2015 Operations as reported in FS Turnover 97,070 66,420 30,650 Gross Margin 20,458 6,591 13,867 Non-interest Expenses (23,345) (12,869) (10,476) Other Operating Income 3,559 254 3,306 EBITDA 672 (6,025) 6,697
Slide 16: Q1 2016 Group Balance Sheet Highlights
Q1 2016 Group Balance Sheet Highlights Fixed Assets LT Receivables Total Borrowings -1% N 607 Bn 7 % 7.6 N Bn -14 % N 345 Bn N’Million Q1 2016 FYE 2015 Variance PPE & Intangibles 607,514 614,867 (1%) Long term receivables 7,594 7,097 7% Inventory 12,236 15,159 (19%) Trade and other debtors 152,318 1
Slide 17: Earnings Guidance for H1 2016 - Unrealized Forex Losses
Earnings Guidance for H1 2016 - Unrealized Forex Losses Ÿ We expect to report lower earnings for Q2 2016 due to the impact of the Naira devaluation against the US dollar resulting in unrealized foreign exchange losses. Ÿ As at Q2 2016 we held USD denominated liabilities of ~$260 Million in our Naira
Slide 18: 2016 Corporate Initiatives
2016 Corporate Initiatives www.oandoplc.com ..the energy to inspire
Slide 19: Oando's New Reality
Oando’s New Reality ..the energy to inspire Low Oil Price Impairments: Foreign Exchange Volatility < $50/bbl >$ 200 Billion Cash Flow Joint Venture Challenges FUNDING CURRENT CLIMATE Delayed Projects: Niger Delta $ 220 Billion MILITANCY Production DECLINE Service Industry Production SHRINKAGE DECLIN
Slide 20: 2016 Strategic Group Initiatives
2016 Strategic Group Initiatives Sale of 60% of ODS to Helios/Vitol. Enterprise value is ~N138bn. Net cash proceeds of Oando Downstream Services (ODS) N58.5bn will be used to reduce debt on the Oando Group Balance Sheet. 60% divestment Deconsolidation will remove another N69bn of debt from the group
Slide 21: 2016 Strategic Group Initiatives - Financial Effects
2016 Strategic Group Initiatives - Financial Effects EBITDA FINANCE COST PAT NET CURRENT ASSETS Oando Downstream Services (ODS) 49% legal rights divestment N16.6 Billion N12.2 Billion N8.9 Billion N55.6 Billion Oando PLC Debt Restructure New MTL Facility N7.7 Billion N7.7 Billion N110.0 Billion OODP
Slide 22: Oando Plc's Deleveraging Profile
Oando Plc’s Deleveraging Profile Group Net Debt (NGN billion) 473 400 374 373 374 345 305 159 218 203 11 93 92 135 128 111 Dec-14 Mar-15 Jun-15 Sept-15 Dec - 15 Mar-16 Jun-16* Sept-16* Dec-16* OPLC OGP OER Notes: 1 June 2016 debt profile based on: I. 60% ODS divestment II. New MTL facility 3 Septemb
Slide 23: Strategic Overview
Strategic Oveview www.oandoplc.com ..the energy to inspire
Slide 24: Strategic Highlights
Strategic Highlights Current: 2016 Midterm: 2017 Long Term: 2019 › Production of ~54 kboepd (2015 Average Net Production) › Production Target: > 80kboepd › Production Target:>100kboepd › 2P Reserves of 445 mmboe › Reserves Replacement Ratio Target of 1:1 › 2P Reserves Target: >500mmboe › Maintain pr
Slide 25: Q&A
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