Presentation to Investors 9 months 2014 IFRS Results Update

Presentation to
Investors
9 months 2014 IFRS Results Update
December 2014
1
Review of Operations
2
Crude Oil Production and TANECO Refining output
Production Dynamics
TANECO Refined Products Output 9m2014
600
200
550
510
500
186.0
510
186.0
511
186.6
512
187.4
516
518
190
188.2
In the 9m2014 TANECO produced 6.35 million
tonnes of refined products, including:
450
400
180
350
300
170
2009
2010
2011
Average Daily Production, kbpd
2012
2013
9m2014
Total prodiction, mln barrels per year
141.3
!  Middle distillates – 2.03 million tonnes
!  Fuel Oil – 1.44 million tonnes
!  Stable Natural Gasoline (Naphtha) –
1.23 million tonnes
!  Diesel Fuel– 0.70 million tonnes
!  Vacuum Gasoil (VGO) – 0.41 million tonnes
3
Sales and Logistics
Crude Oil Sales
by Destination Market
28.1
Domestic
26.2
CIS
20
31%
29%
8%
8%
19.6
33%
3%
10
61%
63%
64%
Non-CIS
18.5
32%
13.8
3%
65%
46%
4%
50%
0
2010
2011
2012
2013
9m2014
10.3
10
Volumes, mln tonnes
Volumes, mln tonnes
30
Refined Products Sales
by Destination Market
9.4
8.3
8
42%
6
4
4.5
3%
2.9
2
85%
3%
9%
0
12%
29%
2010
2011
2010
2.8
2011
2012
2013
42%
40%
2012
2013
9m2014
Volumes, mln tonnes
1.9
0.7
4%
52%
62%
Volumes, mln tonnes
0.9
54%
18%
Refined Products Purchased
Crude Oil Purchased
2.7
45%
1.1
9m2014
2010
1.6
2011
1.4
2012
1.3
2013
0.8
9m2014
Main changes in the structure of sales are associated with the launch of TANECO facility in 2011
4
IFRS Financial Results
Overview (9m 2014)
5
Consolidated Financial Statements:
P&L and Cash Flow
Consolidated P&L, RR bn
2012
2013
Sales, gross
Less export duties & excise tax
Revenues, net
626.6
(182.5)
444.1
Costs and other deductions
EBITDA (*)
Chg %,
9m14/9m13
9m2013
9m2014
646.6
(191.6)
455.0
477.8
(143.2)
334.6
499.9
(128.1)
371.8
5%
-11%
11%
342.4
119.4
350.6
123.7
(254.6)
92.9
(274.3)
112.9
8%
22%
EBITDA margin
27%
27%
28%
30%
Profit for the period
Net Profit (attributable to Group
shareholders)
78.4
78.3
59.9
78.0
30%
73.5
70.8
55.1
73.6
34%
Free Cash Flow, RR bn
9m2013 9m2014
Chg % ,
9m14/9m13
2012
2013
Operating Cash Flow
90.6
118.1
79.3
100.2
26%
Capital Expenditures
(50.8)
(56.8)
(38.6)
(37.4)
-3%
Free Cash Flow
39.8
61.3
40.7
62.8
54%
Net Debt Repayments
(29.2)
(23.6)
(20.6)
(28.4)
38%
Dividends
(11.6)
(16.6)
(20.3)
(19.7)
-3%
(*) We define EBITDA as net revenue less (a) costs and other deductions plus (b) amortization and depreciation, according to our
consolidated financial statements.
6
Cost Dynamics
Lifting Costs Y-o-Y, RR/bbl
251.9
260
240
220
200
180
160
140
120
100
80
60
40
20
0
200.7
251.6
219.8
172.2
+14.6%
153.5
+16.6%
-0.1%
+9.5%
+12.2%
2009 avg
2010 avg
2011 avg
2012 avg
2013 avg
9m2014 avg
Lifting Costs, RR per bbl
9m 2014 Capital Expenditures* by Segments,
RR bn
Cost per Barrel Breakdown*, RR/bbl
1,540 1,596
17.0
2.1
1,335
9%
7%
9%
14%
10%
30%
14%
30%
8%
10%
15%
30%
1.0
15.4
R&M, TANECO construction
R&M, other
Exploration & Production
Petrochemical
* Including non-cash additions
40%
37%
37%
1,542
7%
11%
1,646
8%
8%
Other Costs
13%
Transportation expenses
31%
Selling, General and
Administrative Expenses
15%
29%
38%
40%
Operating Expenses
Taxes other than income taxes
2011
2012
2013
9m
2013
9m
2014
* Cost of purchased products is not included. Taxes other than income taxes exclude
export duties and excise taxes.
7
Debt Profile
Debt Profile, RR bn
Debt Reconciliation, RR bn
120
100
80
84.8
60
20
Partial repay ments of $2 bn
f acility 2010
19.8
0
2010
2011
2012
-7.2
9m 2014
2013
Short-term debt
(7.5)
Partial repay ments of $1.5 bn
f acility 2009
(2.2)
Long-term debt, net of current portion
Net Debt
LT Debt Maturity, RR bn
$550 mln f acility 2011
(18.9)
20
15
FX on $1.5bn, $2bn, $0.55 bn,
$75 mln, $144.5 mln & EUR 55
mln credit f acilities
11.6
4.9
10
5
2.0
3.5
4.1
Other
Debt/ EBITDA as of 30 September 2014: 0.18
57.0
40
-20
49.3
Debt as at 31.12.2013
100.6
(0.1)
0
w ithin 1Y
betw een 1Y & 2Y
betw een 2Y & 5Y
after 5Y
Debt as at 30.09.2014
25.5
8
Revenue and Costs: 9m2014 vs 9m2013
RR bn
15.1
12.1
15.4
1.6
(7.0)
371.8
334.6
Revenue
Increase by RR 37.2 bn
Revenue, net
9m2013
Export Duties &
Excise taxes
9.9
Crude Oil Prices Refined Products Sales Volumes
Prices
(0.9)
274.3
254.6
Costs 9m2013
Revenue, net
9m2014
8.8
7.7
(5.8)
Costs
Petrochemicals
and Other Sales
Increase by RR 19.7 bn
MET
Operating
Transportation
SGA
Other
Costs 9m2014
9
EBITDA and Net Profit per bbl: 9m2014 vs 9m2013
263.2
41.3
(29.3)
(54.6)
(71.2)
EBITDA,
RR/bbl
(17.4)
799.1
660.5
EBITDA
9m2013
6.6
Increase by 21%
Revenue, net Purchases
Taxes
Transport
OPEX
SGA
Other
EBITDA
9m2014
263.2
41.3
6.6
(29.3)
(54.6)
(71.2)
Net Profit,
RR/bbl
11.3
(17.3)
(20.9)
520.9
391.8
Net Profit
9m2013
Increase by 33%
Revenue, Purchases
net
Taxes
Transport
OPEX
SGA
DDA
FX
Income
Tax &
Other
Net Profit
9m2014
10
Important Notice
IMPORTANT INFORMATION
THIS PRESENTATION IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON
OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS.
THIS PRESENTATION SHALL NOT CONSTITUTE AN OFFER TO SELL, AN OFFER TO BUY OR SOLICITATION OF ANY OFFER TO SELL OR TO BUY ANY SECURITIES OF OAO TATNEFT (THE
COMPANY ) OR ANY OF ITS AFFILIATES, AND NEITHER THIS PRESENTATION NOR ANYTHING CONTAINED IN IT SHALL FORM THE BASIS OF ANY CONTRACT OR COMMITMENT.
THE INFORMATION IN THIS PRESENTATION HAS NOT BEEN INDEPENDENTLY VERIFIED. NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IS MADE AS TO THE FAIRNESS,
ACCURACY, COMPLETENESS OR CORRECTNESS OF THE INFORMATION, OPINIONS AND CONCLUSIONS CONTAINED IN THIS PRESENTATION. TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, THE COMPANY, EACH OF ITS AFFILIATES AND RELATED CORPORATE BODIES, AND EACH OF ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS AND ADVISORS
DISCLAIM ANY LIABILITY (INCLUDING, WITHOUT LIMITATION, ANY LIABILITY ARISING FROM FAULT OR NEGLIGENCE) FOR ANY LOSS ARISING FROM ANY USE OF THIS PRESENTATION OR
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OR ANY OF ITS AFFILIATES.
MATTERS DISCUSSED IN THIS PRESENTATION MAY CONSTITUTE FORWARD-LOOKING STATEMENTS. THEY APPEAR IN A NUMBER OF PLACES THROUGHOUT THIS PRESENTATION AND
ARE IDENTIFIED BY THE WORDS EXPECTS , INTENDS , WILL , SEEKS , PLANS , ANTICIPATES , PROJECTS AND SIMILAR EXPRESSIONS. THE FORWARD-LOOKING STATEMENTS IN
THIS PRESENTATION ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE STATED IN SUCH
STATEMENTS.
NEITHER WE NOR ANY OF OUR RESPECTIVE AGENTS, EMPLOYEES OR ADVISORS INTEND OR HAVE ANY DUTY OR OBLIGATION TO SUPPLEMENT, AMEND, UPDATE OR REVISE ANY OF
THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION.
THE INFORMATION AND OPINIONS CONTAINED IN THIS PRESENTATION ARE PROVIDED AS AT THE DATE OF THIS PRESENTATION AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. THE
SUPPLY OF THE MATERIALS IN THIS PRESENTATION DOES NOT IMPLY THAT THE INFORMATION HEREIN IS CORRECT AT ANY TIME SUBSEQUENT TO THE DATE HEREOF.
CURRENT AND PROSPECTIVE HOLDERS OF THE COMPANY S SECURITIES SHOULD NOT TREAT THE CONTENTS OF THIS PRESENTATION AS ADVICE RELATING TO LEGAL, TAXATION OR
INVESTMENT MATTERS AND ARE TO MAKE THEIR OWN ASSESSMENTS CONCERNING THESE AND OTHER CONSEQUENCES OF THE POTENTIAL TRANSACTIONS DESCRIBED HEREIN.
THIS PRESENTATION DOES NOT TAKE INTO CONSIDERATION THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR PARTICULAR NEEDS OF ANY PARTICULAR INVESTOR.
PROSPECTIVE INVESTORS ARE ADVISED TO CONDUCT THEIR OWN DUE DILIGENCE.
INFORMATION SET FORTH IN THIS PRESENTATION IS NOT AN ADVERTISEMENT OF THE SECURITIES OF THE COMPANY IN THE RUSSIAN FEDERATION AND IS NOT INTENDED TO DRAW
ATTENTION TO, CREATE OR MAINTAIN AN INTEREST IN OR PROMOTE IN THE MARKET THE COMPANY, OR THE SECURITIES OR TO FACILITATE ANY SALE, EXCHANGE OR OTHER
TRANSFER OF THE SECURITIES IN THE RUSSIAN FEDERATION OR TO OR FOR THE BENEFIT OF ANY RUSSIAN PERSON OR ENTITY.
11

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