Novatek · RUS:NVTK
Novatek — Non-Deal Roadshow (April 2020)
24 slides from Novatek's roadshow presentation, April 2020
Slide 1: Unlocking Arctic Potential: Expanding Our Global LNG Footprint to 2030
Unlocking Arctic Potential: Expanding Our Global LNG Footprint to 2030 Energy Affordability, Security & Sustainability Investor Meetings April 2020
Slide 2: 2019 Financial Highlights
2019 Financial Highlights 1% 13.3 REVENUE (US$ bln) 7.1 NORMALIZED EBITDA (US$ bln) 8% 81% 4.7 NORMALIZED PROFIT (US$ bln) 2.2 FREE CASH FLOW (US$ bln) 15% 2.5 CAPEX (US$ bln) 67% NET DEBT 85% 0.06 TO NORMALIZED EBITDA* (x) * normalized EBITDA from subsidiaries y-o-y performance ✔ Energy Affordabili
Slide 3: 2019 Operational Highlights
2019 Operational Highlights SALES VOLUMES Natural Gas LNG Oil Products Crude Oil LPG 65.7 bcm 12.8 bcm 7.0 mmt 4.8 mmt 2.8 mmt 3
Slide 4: Monetizing Our Resource Base (2019)
Monetizing Our Resource Base (2019) Yamal LNG (nameplate capacity – 17,4 mmtpa) PRODUCING FIELDS Natural gas LNG Yamal Trade Natural gas by pipeline Cryogas-Vysotsk (nameplate capacity – 660 mtpa) Separation and Unstable gas NOVATEK Gas & Power treatment condensate by Asia pipeline LNG Crude oil by
Slide 5: Internally Funded Investment Program
Internally Funded Investment Program 2 000 20,0 1,724 1 500 15,0 1,260 1 000 10,0 981 1,001 931 830 846 842 841 729 751 769 662 684 Operating CF / CAPEX 500 595 5,0 443 US$ mln 0 0,0 -500 - 5,0 Source: Company data LNG -1 CAPEX 000 2 13 20 27 14 95 32 85 70 165 187 305 375 167 234 421 - 10,0 Non-LNG
Slide 6: Strategy’s Objectives and Key Events 2018-2020
Strategy’s Objectives and Key Events 2018-2020 Cryogas-Vysotsk FID made for Train 1 Yamal LNG Start-up of Train 3 ARC7 LNG carriers Yamal LNG Cryogas-Vysotsk 15 carriers in Start-up of Train 4 Start-up of Train 1 Arctic LNG 2 operation FEED completion Natural gas liquefaction ARC4 LNG carriers compl
Slide 7: Global LNG Market
Global LNG Market ✔ Energy Affordability ✔ Energy Security ✔ Energy Sustainability 7
Slide 8: Significant Potential for Increased Gas Consumption by Emerging Markets
Significant Potential for Increased Gas Consumption by Emerging Markets Size of the circle depends on the population ✔ Energy Affordability ✔ Energy Security ✔ Energy Sustainability 8
Slide 9: Global LNG Demand – Stronger than Expected
Global LNG Demand – Stronger than Expected >740 800 mmtpa 700 600 Europe 500 400 314 300 Asia- Pacific 200 100 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Asia Pacific Europe Middle East North America South America Africa Sourc
Slide 10: Asian Gas Market Prospects
Asian Gas Market Prospects 1400 bcm 1274 1200 1000 Gap to be filled mostly by LNG and pipeline gas >780 bcm 800 600 740 400 Domestic production? 200 0 2019 2022 2025 2028 2031 2034 2037 2040 Onstream Under Development Probable Development Technical Reserves YTF Demand Source: Wood Mackenzie ✔ Energy
Slide 11: European Gas Market Prospects
European Gas Market Prospects 700 bcm 600 517 500 548 400 Need for global LNG 300 and pipeline gas >430 bcm 200 100 0 2019 2022 2025 2028 2031 2034 2037 2040 Indigenous Production* Contracted - LNG Contracted - North Africa Piped Contracted - Norway Piped Contracted - Russia Piped Contracted - South
Slide 12: NOVATEK’s LNG Production Platform
NOVATEK’s LNG Production Platform TREKHBUGORNIY LA BUKHARINSKIY LA 2027-30 ✔ Energy Affordability ✔ Energy Security ✔ Energy Sustainability 12
Slide 13: NOVATEK’s LNG Production Timeline
NOVATEK’s LNG Production Timeline 18.6 19.6 19.6 31 38 44 57-70 mmt mmt mmt mmt mmt mmt mmt 13
Slide 14: Yamal LNG Runs Above Capacity
Yamal LNG Runs Above Capacity Yamal LNG ramp-up ahead of schedule and on budget Train 1 completed on schedule 5.5 mmtpa Train 2 completed 6 months 5.5 mmtpa ahead of schedule Train 3 completed >12 months 5.5 mmtpa ahead of schedule Train 4 start-up is expected 0.9 mmtpa in 2020 >30 million tons of L
Slide 15: Large-Scale LNG Sales
Large-Scale LNG Sales LNG Sales of NOVATEK Gas & Power Asia 12M Total (1) 2019 from 2017 Yamal LNG Number of Norway cargos 119 177 Volumes, mmt 8.3 12.3 United Kingdom Netherlands Belgium Total dispatched from Yamal LNG France Number of Spain cargos 253 369 China Volumes, mmt 18.4 26.9 Thailand Indi
Slide 16: Arctic LNG 2
Arctic LNG 2 Natural gas production at Utrenneye field, bcm 35 30 25 20 15 10 5 0 2023 2024 2025 2026 2027 2028 2029 2030 Gas condensate production at Utrenneye field, mmt 2,0 1,5 1,0 0,5 0,0 2023 2024 2025 2026 2027 2028 2029 2030 Project Participants Contracted more than 90% of the equipment for t
Slide 17: Cryogas-Vysotsk
Cryogas-Vysotsk Medium-tonnage LNG plant on the Baltic Sea LNG production facility and a transshipment terminal thousand tons per annum – 660 initial design capacity designed to handle 30 mcm capacity LNG carriers 51% Our participation interest 91 shipments by tankers and 240 by trucks in 2019 = 386
Slide 18: All ARC7 Ice-Class LNG Tankers in Operation
All 15 ARC7 Ice-Class LNG Tankers in Operation Speed in open Speed in ice 1.5 m water thick LNG tanker Vessel power capacity ✔ Energy Affordability ✔ Energy Security ✔ Energy Sustainability 18
Slide 19: LNG Logistics to Asia
LNG Logistics to Asia 12 days 85 36 days 29 2019 2040 160 110 79 6 35 days 2019 2040 2019 2040 145 26 days 46 14 7 days days 4 2019 2040 days 15 86 days 76 2019 2040 Source: IHS Markit Global LNG supply ✔ Energy Affordability ✔ Energy Security ✔ Energy Sustainability 19
Slide 20: Sustainable Development – Integral Part of Strategy
Sustainable Development – Integral Part of Strategy* Sustainable reporting with GRI recommendations from 2005 * Corporate Strategy 2018-2030 ✔ Energy Affordability ✔ Energy Security ✔ Energy Sustainability 20
Slide 21: Sustainability Reports Since 2005
Sustainability Reports Since 2005 Longest history of sustainability reporting in the Russian O&G ✔ Energy Affordability ✔ Energy Security ✔ Energy Sustainability 21
Slide 22: Commitment to Developing Sustainable Value
Commitment to Developing Sustainable Value NOVATEK is ranked among top ESG companies FTSE Russell Ratings confirms that NOVATEK by Thomson Reuters ESG Scores in Russia remains a constituent of the across all industries FTSE4Good Emerging Index in 2019 Rating 3.4/5 NOVATEK maintained Average Performe
Slide 23: Dividends: Sharing Our Success
Dividends: Sharing Our Success DIVIDEND PAYOUT(1), (RR per ordinary share) Absolute growth: 36x 32,33 CAGR: 29% 26,06 18,10 (2) 2H 14,95 13,50 13,90 14,23 1H 10,30 7,89 6,86 6,00 4,00 1,65 2,35 2,52 2,75 0,90 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Committed to inc
Slide 24: Disclaimer – Forward Looking Statement
Disclaimer – Forward Looking Statement Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which