Rosneft · RUS:ROSN
Rosneft — Investor Day (April 2013)
17 slides from Rosneft's investor day presentation, Apr 23, 2013
Slide 1: Rosneft Investor Day London
ROSNEFT INVESTOR DAY LONDON Igor I. Sechin April 23, 2013
Slide 2: 2012: Another Successful Year
2012: Another Successful Year 131% • Reserve replacement •Well Wellabove aboveindustry average industry average 4.5% • Production P d ti growth th •Increased output Increased atat output new and new maintained and production maintained plateau production ofof plateau existing fields existing fields
Slide 3: Key Highlights
Key Highlights Record high crude production of 2.4 mln bbl per day Breakthrough B kh h iin gas b business: i i h Itera, JV with I l long-term contract with ih INTER RAO UES 16 refining fi i units it built b ilt or upgraded d d since i th the start t t off th the Refinery R fi modernization pro
Slide 4: Efficient Production
Efficient Production Rosneft Rosneft 367 309 0.1% (0.3)% thbpd thbpd Yugansk West Siberia** production at total production at y-o-y flat y-o-y decline Vankor VIOC* greenfields 133 65 $2.9 $5.6 bpd bpd per bbl per bbl average flow average lifting costs average rate per well in Russia in Russia * Vert
Slide 5: Monetization of Gas
Monetization of Gas Gas production, bcm 100 Gas is 24% of proved Others hydrocarbon reserves Sakhalin-3 Rospan Itera JV provides acess to unique regional distribution 53 Kynsko-Chaselskoe network Kharampur Over 75% of target gas production already contracted in Vankor 2017 41 Long-term targe
Slide 6: Refinery Modernization Program
Refinery Modernization Program Fuel oil in petroleum products output When completed: Target Euro-5 E 5 compliance li 5% 28% Light product yield up from 56% to 80% 2012 Refining margin up from $7.5 to $11 per bbl Cost and quality control • Standard units at different refineries Motor fuels co
Slide 7: Progress on Strategic Partnerships
Progress on Strategic Partnerships Russian offshore Drilling candidate chosen in the Kara Sea. Drilling to start 2014 Tight oil Pilot program accepted, finance up to USD 300 mln Stake in US Gulf of Mexico projects and Cardium in Canada (with limited International projects budget) Russian offshore 4
Slide 8: Venezuela: Largest New Discoveries
Venezuela: Largest New Discoveries Proved oil reserves by countries Total Capex of $10 bln over 10 years starting Others in 2-3 years 17.9% Venezuela Tax breaks depending on project payback 46.3% 1.7 1 7 trln t l bbl 16.1% Low lifting costs Saudi Arabia • Carabobo-2 (40%): 10.6% 9.1% Iran Cana
Slide 9: TNK-BP Acquisition
TNK-BP Acquisition New shareholder structure The largest deal ($55.3 bn) in the Free float industry BP 10.75% Rosneft is the largest public oil company 19 75% 19.75% Synergies exceeding $10 bn BP ready to share industry insight and know-how Private shareholder base reached 69.50% 30 5% 30.
Slide 10: Strong Consolidated Metrics of the Companies
Strong Consolidated Metrics of the Companies 2012 Rosneft 100% in ÒNK-ÂÐ $ bn Revenue 99.0 60.8 EBITDA 19.6 13.8 Net Income 11.0 8.5 Operating O ti cash flow 16.6 13.2 Cash 12.6 4.6 year end 10
Slide 11: Integration Process
Integration Process A steering committee, chaired by the CEO, coordinating HQ, secretariat and 21 working groups have been set up to integrate the two companies Robert Dudley (CEO of BP) joined the steering committee on TNK-BP integration and has been nominated to the Rosneft Board of Directors St
Slide 12: Synergies Total Value
Synergies Total Value 1.0 2.5 1.0 05 0.5 10.0 2.0 30 3.0 Upstream Marketing&Logistics Refining Personnel Procurements Others Total 1 2 3 4 5 1. Joint use of Vankor infrastructure, exploration portfolio optimization 2 Crude and petroleum products supply chains and filling station networks optimizatio
Slide 13: Scale of Operations
Scale of Operations 9 overlapping regions in Upstream, 11 in Downstream Europe Messoyakha Russia Polar Lights West‐ Suzun & Tagul Zapolyarnoe Vankor Belarus Severnaya Neft Beregovoe Pyreinoe Rospan Russkoe East Mozyr Moscow Yanos Khadyryakhinskoe Kharampur Gubkinskoe Taas‐Yuryakh Kuyumbinskoe Ukrain
Slide 14: New Global Leader
New Global Leader Production, mln boe per day SEC reserves, bln boe 14 Source: Company data
Slide 15: Corporate Governance
Corporate Governance Rosneft shareholders proposed to add three new international board members increasing g the depth p of senior corporate p governance g experience p and knowledge g in both the oil and gas sector as well as corporate finance Robert Dudley Donald Humphreys p y John Mack Chief Exec
Slide 16: Strategic Priorities
Strategic Priorities Global leadership in hydrocarbon production TNK-BP TNK BP acquisition Increase of high-margin outputs Refinery modernization program 35% completed Gas business development Created Itera JV, signed long term contract with INTER RAO, gas reserves up 17% Efficient domestic and expo
Slide 17: 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