Equinor Asa · OSL:EQNR
Equinor Asa — Statoil — Merger or Acquisition (December 2006)
26 slides from Equinor Asa's merger presentation, Dec 18, 2006
Slide 1: Press conference Oslo 18.12.2006
Press conference Oslo 18.12.2006
Slide 2: Forward-looking information cautionary statement
Certain statements contained in this announcement constitute "forward-looking information" within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. In order to utilize the "safe harbors" within these provis
Slide 3: Use of non-GAAP financial measures
Use of non-GAAP financial measures With respect to each non-GAAP financial measure Hydro and Statoil use in connection with their financial reporting and other public communications, Hydro and Statoil provide a presentation of what Hydro and Statoil believe to be the most directly comparable GAAP fi
Slide 4: Introduction
Introduction Jannik Lindbaek Chairman Statoil ASA Jan Reinas Chairman Norsk Hydro ASA
Slide 5: A historic transaction
A historic transaction Merging Hydro's oil and gas activities with Statoil to create a new Norwegian-based international energy company, capitalizing on 40 years of oil and gas expertise Hydro to continue a century of industrial heritage as a focused aluminium company
Slide 6: Transaction structure and governance
Transaction structure and governance Valuation Merger of equals and exchange ratio based on relative contributions Hydro's shareholders will hold 32.7% and Statoil's shareholders will hold 67.3% of the equity in the combined company Government stake in the combined company will be 62.5% and 43.8% in
Slide 7: Eivind Reiten President & CEO Hydro
Eivind Reiten President & CEO Hydro
Slide 8: Creating two Norwegian-based global champions
Creating two Norwegian-based global champions A leading international energy company positioned for continued growth World's largest offshore operator with strong portfolio First-class technology and project execution capabilities Major and reliable supplier of gas to Europe A focused global alumini
Slide 9: A perfect match
A perfect match Stronger basis for value creation on the Norwegian Continental Shelf Forceful international competitor Scale, portfolio and capabilities to accelerate growth Strong platform to enhance shareholder value Responding to a changing competitive landscape
Slide 10: Hydro: A focused global aluminium company
Hydro: A focused global aluminium company Third largest listed aluminium company in the world Restructuring nearly completed - strong results in 2006 Well-positioned for long-term growth Good power coverage from captive hydropower Strong financial position
Slide 11: Hydro: Strategy for long-term growth
Hydro: Strategy for long-term growth Building on a leading, global position in metal production Pursuing new attractive opportunities in alumina and metal Leveraging unique platform in Extrusion, Precision Tubing and Building Systems and strong position in Rolled Products
Slide 12: Helge Lund President & CEO Statoil
Helge Lund President & CEO Statoil
Slide 13: The Norwegian-based energy champion
The Norwegian-based energy champion Step change in production and resource base Expected combined production 1.9 million boepd in 2007 6.3 billion boe in proven reserves* Stronger portfolio in Norway and internationally Extensive exploration program and acreage Technology and project execution skill
Slide 14: World's largest offshore operator
World's largest offshore operator * No. of barrels operated at water depths > 100m Source: McKinsey 2003
Slide 15: Taking the NCS to the next level
Taking the NCS to the next level Ensure maximum recovery of resources Efficient operations to prolong the economic life of existing fields Catalyst for innovative solutions and increased recovery Active frontier exploration
Slide 16: Stronger global E&P presence
US Gulf of Mexico South America West Africa North Africa Caspian Middle East Stronger global E&P presence Canada Russia Arctic North Sea & Norwegian Sea Current production
Slide 17: Gulf of Mexico - more of the perfect match
Gulf of Mexico - more of the perfect match Balanced and material position with potential to deliver significant future growth Current production in period of high prices Significant near-term growth from new deepwater developments Well positioned in recent significant discoveries Top ten exploration
Slide 18: Significant and attractive sources of growth
Significant and attractive sources of growth* Comprehensive portfolio of projects under development Norway: Ormen Lange, Snohvit, Statfjord Late Life, Gjoa/Vega, Tyrihans, Volve US Gulf of Mexico: Tahiti, Thunder Hawk, Independence Hub Area West Africa: Rosa, Agbami, Gimboa Caspian: ACG phase III At
Slide 19: Capitalizing on technology leadership
Capitalizing on technology leadership World leader in subsea technology Pioneer in advanced drilling and multilateral wells Excellent reservoir management and enhanced recovery track record First-class project management of large scale oil and gas projects High standard of environmental technology a
Slide 20: Synergies and value creation
Synergies and value creation A merger for new opportunities and growth Complementary competencies and portfolios Larger operational and financial flexibility Efficient use of technology, development expertise and R&D Sharing of best practice
Slide 21: Corporate Management in the new company
Corporate Management in the new company Helge Lund, President and Chief Executive Officer Eldar Saetre, Chief Financial Officer Tore Torvund, Exploration & Production Norway Peter Mellbye, International Exploration & Production Morten Ruud, Projects Margareth Ovrum, Technology and New Energy Rune Bj
Slide 22: Integration process
Integration process Company address in Stavanger. Group functions located in Oslo and Stavanger. President and CEO to operate out of both locations Integration team to be led by Hilde Merete Aasheim Planning and execution of integration according to detailed timeline Equal job opportunities for empl
Slide 23: Transaction structure and financial highlights
Transaction structure and financial highlights Hydro's shareholders will hold 32.7% and Statoil's shareholders will hold 67.3% of the equity in the combined company Hydro's shareholders will receive shares in the ratio of 0.8622 shares per Hydro share Net interest bearing debt expected at the end of
Slide 24: Timeline to closing
Timeline to closing Transaction is subject to Shareholder approvals Regulatory approvals Expected closing third quarter 2007
Slide 25: Income Statements
Income Statements ‘STATOR. CONSOLIDATED STATEMENTS OF INCOME - USGAAP (Unaudited) At September 30, ‘PROPOSED DEMERGED H¥ORO CONDENSED CONSOLIDATED STATEMENT OF INCOME - USGAAP (Unaudited) At September 30, Gn. NOK million) 2006 (in NOK million) 2006 Total revenues 321 431 Operating revenues 76 000 De
Slide 26: Balance Sheets
Balance Sheets ‘STATON. CONSOLIDATED BALANCE SHEET (Unaudited) At September 30, ‘PROPOSED DEMERGED HYDRO ‘CONDENSED CONSOLIDATED BALANCE (Unaudited) At September 20, (ia Nox mition) 2006. (in NOK milion) 2008 ASSETS ASsers Tota curent assets 105752 Total curent assets 45000 Investments in afates 491