Bashneft ANK · RUS:BANE
Bashneft ANK — JSOC Bashneft — Renaissance Capital 16th Annual 1:1 Investor Conference 2012
28 slides from Bashneft ANK's conference presentation, Jun 25, 2012
Slide 1: JSOC Bashneft 16th Annual 1:1 Investor Conference
JSOC Bashneft 16th Annual 1:1 Investor Conference Renaissance Capital 25-26 June 2012, Moscow
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation may contain assumptions or forecasts with respect to forthcoming events within Bashneft Group. The words “expect”, “estimate”, “intend”, “will”, “could” and similar expressions identify forward-looking statements. We wish to caution you that these s
Slide 3: Bashneft Group Today
Bashneft Group Today Crude Oil Production Crude oil production in 2011 – 15.1 mln.tonnes. Production growth rate in 2011 - +6.8% Share in Russia’s crude oil production – 3.0% Number of fields – 190 Proved oil reserves PRMS (1Р) – 1 984 mln.bbl. Oil Refining Nelson Index – 8.3 Refining volumes in 201
Slide 4: Key indicators for Bashneft Group in 1Q 2012 and 12M 2011
Key indicators for Bashneft Group in 1Q 2011 and 12M 2011 1Q 2012 4Q 2011 ∆, % Indicator 12M 2011 12M 2010 ∆, % Macro indicators 117,0 108,6 7,7% Urals price, US$/barrel 109,1 78,3 39,3% 54,9 55,3 -0,7% Crude oil export duty, US$/barrel 56,0 37,5 49,3% Operating results 308,0 305,4 0,9% Crude oil pr
Slide 5: Reserves as of December 2011
Reserves as of 31 December 2011 Reserves Reserves Trebs & Titov oilfields in Nenets 190 fields, of which 166 in operation Autonomous Okrug (2 oilfields) Proved oil reserves (1P) in 2011– 1,984mmbbl; (2P) – 2,404mmbbl Reserve life of 18 years (1P), 22 years (2P) 5 oilfields in Replacement ratio (1P)
Slide 6: Trebs & Titov oilfields: the key driver of future production growth
Trebs & Titov oilfields: the key driver of future production growth In the long-run the project will support production growth Reserves under АВС1 classification C1+C2: 140.1 mmt C3: 59.3 mmt Reserves under the standards of PRMS(1) Contingent resources: 732 mmbbl Prospective resources : 61 mmbbl In
Slide 7: Trebs & Titov oilfields: the key driver of future production growth
Trebs & Titov oilfields: the key driver of future production growth 15 April 2011: Bashneft and Lukoil signed a treaty on cooperation for the development of the oilfields 14 December 2011: license reissued for JSC Bashneft Polus 27 December 2011: signing of final documents on establishment of JV Bas
Slide 8: Oil Production
Oil Production Oil production growth rates in 2011, % Upstream business results 6.8% Bashneft remained the Russian oil sector leader by crude output 2,1% growth rates in 2011. Crude output was 15.106 million tonnes, which is 1,9% 6.8% more than in 2010 An increase in crude oil production in the 1st
Slide 9: Upstream strategy
Upstream strategy Oil production forecasts 20 18,5 18 15,1 15,2 16 14,1 14 12,2 12 10 8 6 4 2 0 2009 2010 2011 2012E 2013E 2014E 2015E 2016E Bashneft "as is" Trebs & Titov Mid-term goals 2012- 2016 Crude oil production of 18.5mmt by 2016 on the basis of existing assets: Maintaining the stable level
Slide 10: Bashneft Group refineries
Bashneft Group refineries Oil refining capacity – 24.1 mln. tonnes per year Refining volume in 2011 – 21.1 mln. tonnes Average refining depth – 85.9% Share of light products in 2011 – 59.9% Nelson index – 8.3 Potential to produce Euro-3 and Euro-4 fuel JSOC Ufa Oil refinery JSOC NOVOIL JSOC Ufanefte
Slide 11: Oil Refining
Oil Refining Oil refining growth rates (FY11),% Comments * Refining volumes in 2011 declined by 0.6% y-o-y to 21.062 million tonnes. 5,4% In the 1st quarter of 2012, crude oil refining amounted to 5,120 thousand tonnes, -0,1% having decreased by 4.0% compared to the 4th quarter of 2011; this was cau
Slide 12: Downstream strategy
Downstream strategy Refining volume, refining depth and light yield Mid-term goals (2012- 2016) 25 94,4% 100% Refining 85,9% Reach technical and economic metrics on the level of best European refineries 23 73,4% 80% Light yield increase to 73% Refining volume of 20mmtpa 59,9% 21 60% Nelson index of
Slide 13: Group sales
Group sales Export and domestic sales of oil products, Sales results mln. tonnes. 6,0 Total sales of petroleum products in the 1st quarter of 2012 amounted to 4,337 5,0 thousand tonnes. 4,0 In the 1st quarter of 2012, domestic sales of petroleum products and petrochemicals 2,6 2,9 2,8 2,7 3,1 3,0 2,
Slide 14: Capex dynamics: focus on developing newly acquired fields and modernizing refining capacities
Capex dynamics: focus on developing newly acquired fields and modernizing refining capacities US$mm Capex dynamics US$mm CAPEX in production and refining 900 851 160 146 147 800 53 140 700 589 308 120 106 600 102 492 100 95 500 84 190 78 76 80 74 400 136 60 50 300 215 134 490 40 200 100 184 222 20 0
Slide 15: Capex overview (2011e-2016e)
Capex overview (2011e-2016e) Capex structure by business lines Comments (average annual) Bashneft estimates that the capital expenditure in 2011-2016 may be ~ US$1-1.2bn per year 100% around US$1-1.2bn (ca. RUB 40bn) per year (excluding acquisitions in 20% the upstream segment) 80% 30% Upstream cape
Slide 16: Key credit strengths
Key credit strengths Extensive reserve base Large-scale vertical Top-industry production combined with top- integration from crude growth rates backed by industry replacement oil production to sales significant potential for results and lowest F&D of petroleum products further expansion costs Highly
Slide 17: Debt portfolio
Debt portfolio Debt breakdown (as of December 31, 2011) Debt structure, % 4 500 4 000 100% 5,0% 9,0% 90% 3 500 80% 3 000 881 70% 2 500 60% (602) 50% 2 000 2 965 95,0% 91,0% 3 385 40% 1 500 30% 1 000 1 902 20% 500 10% 420 0% 0 Short term Long term Total Cash&Cash Short term Net debt FY2010 FY2011 equ
Slide 18: Appendix
Appendix
Slide 19: Shareholder structure: stock consolidation by Sistema
Shareholder structure: stock consolidation by Sistema Shareholder equity Voting shares 3,1% Sistema 1,5% 12,2% 23,9% Sistema BB/Ba3/BB- (S&P/M/F) is the largest Sistema-Invest public diversified financial corporation in Russia and the CIS, which operates companies from a 52,1% Other legal entities,
Slide 20: Group structure
Group structure 52.1% * (61.3% **) Sistema JSFC 26.7% * (26.7% **) Bashneft Sistema-Invest 20.9% * (25.0% **) 54.9% * (65.7% **) 18.2% * (22.4% **) Ufaneftekhim 8.1% * (8.1% **) 61.8% * (67.4% **) 25.6% * (28.2% **) Novoil 47.8% * (50.2% **) 7.3% * (7.3% **) 56.3% * (62.7% **) 22.5% * (25.5% **) Ufa
Slide 21: Transition to a "single share"
Transition to a “single share” Key goals of the transaction Target Corporate Structure3 Establish Bashneft as a fully-fledged vertically-integrated company Minority Optimise corporate structure to improve efficiency AFK Sistema shareholders Protect the rights of minority shareholders 29.0%¹ 46.1%¹ 5
Slide 22: Transition to a "single share": buyback and conversion factors
Transition to a “single share”: buyback and conversion factors Proposed buyback prices (Roubles) Ordinary Shares Preferred shares Conversion ratio: number of Conversion ratio: number of Company shares in subsidiary per 1 share of Buyback price shares in subsidiary per 1 share Buyback price Bashneft
Slide 23: Constant monitoring and application of best corporate governance practices
Constant monitoring and application of best corporate governance practices Board of Directors Alexander Goncharuk Chairman Sergei Drozdov Aleksey Buyanov Mikhail Shamolin Anton Abugov Felix Evtushenkov Senior Vice President, Senior Vice President, President First Vice President, First Vice President
Slide 24: Corporate governance and management structure
Corporate governance and management structure Committees Alexander Corporate Budget and Nominating and Board of Strategy Korsik Conduct Audit Compensation Directors Committee President Committee Committee Committee Exploration & Production Refining and commerce Strategy Finance Governance & Legal Mi
Slide 25: Management team with strong track record
Management team with strong track record 1995-1997 Deputy executive director of KomiTek-Moscow Alexander 1997-1999 Head of strategic development department, 1999-2005 first vice president of Sibneft Korsik President 2006 Deputy executive board chairman of Renaissance Capital, 2006-2007 president of
Slide 26: Management team (cont'd)
Management team (cont’d) 1997-2006 Worked in OJSC Sibneft Igor Marchenko November 2006- 2007 Development Director of ITERA Oil and Gas Company LLC. Vice President 2007-2009 Vice President for Development in OAO NK RussNeft. Strategy and 2009–2011 Worked as an Executive Vice-President, the Director o
Slide 27: Management team (cont'd)
Management team (cont’d) Viktor 20 years of experience at the Ufa refinery Gantsev 1998-2004 Director of Bashneftekhim Senior Vice President 2006-2009 Director of Ufaneftekhim Refining and 2009 Senior Vice President of the refining department at Bashneft Petrochemicals 1996-1998 Head of implementati
Slide 28: Thank you for your attention!
Thank you for your attention! Our contacts: Investor Relations Department Maria RADINA Head of IR Phone: (007) (495) 225-00-35, ext. 99832 E-mail: [email protected] 5, 1-st Tverskaya-Yamskaya Moscow, 125047, Russia Tel: +7 495 225 – 00 – 35 Fax + 7 495 228 – 15 – 90 [email protected]
JSOC Bashneft — Renaissance Capital 16th Annual 1:1 Investor Conference 2012 on 6ix