INTERIM REPORT FOR THE FIRST THREE MONTHS OF 2016

Transcription

1 INTERIM REPORT FOR THE FIRST THREE MONTHS OF 2016

2 KEY GROUP FIGURES KEY GROUP FIGURES AS AT 31 MARCH in EUR thousand Q Q Change Sales Revenues 61,052 72,709 (16.0)% Gross profit 9,100 10,713 (15.1)% EBITDA 15,420 16,261 (5.2)% EBITDA margin 25.3% 22.4% EBIT 5,445 6,762 (19.5)% EBIT margin 8.9% 9.3% Group result 4,272 5,478 (22.0)% Earnings per share (EUR) (22.0)% Balance sheet total 1) 316, , % Equity 1) 159, , % Equity ratio 1) 50.5% 48.3% Cash flow from operating activities 19,282 (4,575) >100.0% Capital expenditure (2,293) (14,663) (84.4)% Cash flow from financing activities 1,137 >100.0% Cash and cash equivalents 47,864 41, % Employees (average) 3,167 3,335 (5.0)% 1) As at 31 March 2016 and 31 December 2015 respectively

3 1 GROUP MANAGEMENT REPORT AS AT 31 MARCH MANAGEMENT REPORT

4 PERFORMANCE OF THE C.A.T. OIL GROUP GROUP MANAGEMENT REPORT AS AT 31 MARCH In the first three months of 2016 the C.A.T. oil Group experienced a good start despite the ambivalent economic conditions: the revenues in Russian Roubles maintained the level of 2015 and the service operation facilities of the Company were contracted almost up to 100% for the year This was performed although the business environment confronted the industry with some challenges. The Russian Rouble had continued it s devaluation, especially in the beginning of the year and the cross exchange rate demonstrated a negative impact. The average exchange rate of one Euro in the Q1 of 2016 is Russian Rouble in comparison to Russian Rouble in the Q1 of The straight forward impact of devaluation is 16.9%. The companies of C.A.T. oil Group carry out almost all their service contracts in Russian Roubles, whereas, the consolidated financial statements are presented in Euro currency. On the other hand, the Brent oil price improved from the lowest level of 28.6 USD on 18 th of January up to 39.6 USD by Unfortunately this strong recovery by 38.5% starting from dramaticly low level was not enough to reanimate investment activities of oil producers and service fees paid to OFS providers had remained under pressure and unchanged. A significant client s recognition happended in the sector of HSE (Health, Safety & Environment): CAToil Drilling was ranked as number one among the other suppliers of OAO Slavneft-Megionneftegaz related to operational safety as well as industrial, fire, environmental, driving safety and polution prevention. The significance of this award is underlined by the fact that Slavneft-Megionneftegaz is one of the largest corporations in Russia. The company is producing and developing oil and gas deposits across Western Siberia in Russian Federation. In CAToil each employee is incorporated in the valid system of measures to prevent disasters and accidents. The system is continuously improving and progressing for the favor of our Customers. REVENUES In this environment C.A.T. oil Group managed to maintain the sales revenues in Russian Roubles on the same level as in the first quarter of 2015, which was better than expected. The number of jobs in the segment Well Services fell by 7.7% to 1,028 due to adjusted demand from oil companies and because the tender campaign had been postponed, whereas in the segment Drilling, Sidetracking and IPM the job count rose by 25.9% to 68 jobs which is mostly related to newly placed rigs and improved contract conditions. The consolidated sales revenues in Euro fell from 72.7 EUR million in the first quarter of 2015 to 61.1 EUR million in the first quarter of This decline of 16% is less than depreciation of the Russian Rouble in the same period which amounted to 16.9%.

5 GROUP MANAGEMENT REPORT AS AT 31 MARCH External revenues Q Q Change +/- in % Well Services EUR million (5.2) (13.0) Jobs Number 1,028 1,114 (86) (7.7) Average revenue per job EUR thousand (2.1) (5.8) Percentage of revenues % Drilling, Sidetracking, IPM EUR million (6.4) (19.8) Jobs Number Average revenue per job EUR thousand (216.9) (36.2) Percentage of revenues % WELL SERVICES REVENUES The job count in the Well Services segment had fallen as well as the average revenue per job which amounted to 34,124 Euro after 36,209 Euro in the first quarter of The segment s revenue eased by 13.0% from 40.3 EUR million in the first quarter of the previous year to 35.1 EUR million in the first quarter of DRILLING, SIDETRACKING AND IPM REVENUES Contrary to that, the performance in the Drilling, Sidetracking and IPM segment was embossed by a steep increase in number of jobs. The job count rose by 25.9% to 68 jobs due to the improved contract conditions. Because the sharp increase of physical volumes the average revenue per job fell by 36.2% only to 382 EURO thousands. The segment s revenue declined by 19.8% from 32.4 EUR million to 26.0 EUR million in the first quarter of 2016 and was in line with Russian Rouble depreciation and price trends in drilling and sidetracking. EARNINGS Cost of sales, which primarily consists of material costs, direct costs (represented mainly by industrial services), depreciation and personnel costs, went down by 16.2% and amounted in the first quarter of 2016 to 52.0 EUR million. This reduction is justified by higher depreciation. As a result, the EBIT dynamics was inferior to the revenue s development. Consolidated earnings before interest and taxes (EBIT) contracted by 19.5% in the reporting period to 5.45 EUR millions. The bigger pace of EBIT reduction compared to revenue and cost of sales is related to the increase of other operating expenses (creation of provisions for several debtors). As a result the respective margin compressed to 8.9% from 9.3% in the Q In the Q EBIT amounted to 6.76 EUR millions. CONSOLIDATED NET RESULT In the first quarter of 2016 the consolidated net result decreased by 22% to 4.3 EUR million (Q1 2015: 5.5 EUR million). The decline is more distinct in comparison with the reduction of EBIT due to higher taxation rate (18.8% in Q versus 17.1% in Q1 2015). Earnings per share amount to 0.09 EUR in the reporting period after 0.11 EUR in the first quarter of the previous year.

6 GROUP MANAGEMENT REPORT AS AT 31 MARCH EBITDA AND CASH FLOW EBITDA margin in the reporting period reached 25.3% and provided a contribution of 15.4 EUR millions. This development is the crucial factor for the turnaround of the operating cash flow from minus 4.6 EUR millions in Q to 19.3 EUR millions in Q The second key factor was the positive development of working capital which achieved 5.3 EUR millions in Q compared to minus 19.7 EUR millions in Q The limited cash outflow of 1.86 EUR millions from investment activities was covered by the effect of the exchange rate. Effect of exchange rate changes on cash and cash equivalents amounted to 1.98 EUR million. Thus, the overall net change in cash and cash equivalents amounted to 19.4 EUR millions which is totally in line with the development of the operating cash flow. As a result, cash and cash equivalents reached 47.9 EUR millions compared to 28.5 EUR millions as at 31 December So, the managerial cash position which is calculated as sum of cash and cash equivalents and bank deposits increased by 50.6% from 40.3 EUR million at the beginning of reporting period to 60.7 EUR million as at 31 March BALANCE SHEET In the first quarter of 2016 total assets increased by 4.9% compared to the figure at the end of the year 2015, amounting to EUR million, resulting in an equity ratio of 50.5%, as compared to 48.3% at the end of Equity rose by 9.6% to EUR million, as compared to EUR million at the end of By the end of the first quarter of 2016 there is an increase in trade payables by 23.5% to 31.5 million euros in connection with the improvement of payment terms and raising the procurement for the upcoming projects.

7 OUTLOOK GROUP MANAGEMENT REPORT AS AT 31 MARCH Three main factors will determine the development of the Russian economy: First factor is commodity prices, which already recovered slightly at the beginning of In the second quarter of 2016, the oil price fluctuates in the range of USD per barrel. In the second half of the year the oil price is expected to come up to a level of USD per barrel. The second factor is the economical sanctions imposed by the USA and the European Union which could be eased after the presidential elections in the US in Thirdly, the ability of the Central Bank of Russia and the government to keep financial and budget stability will help to relaunch the economic growth based on a restored investment process adapted to stabilized new environment conditions. Oil production in Q increased by 4.5% on a year-on-year basis which demonstrates the improved growth and export conditions in Russia. Thus, the performance of the Russian economy should turn into real growth rates in the second half of Some industry analysts and experts anticipate the investment activities in the oil industry to restart in the middle of the year in order to provide efficient production rates in Russia in the future. Due to improved economic and market trends we adjusted our assumptions on exchange rate to Russian Rouble for 1 Euro. The management expects revenue from operations in Russian Rouble to raise by 1% or 2% in The margins regarding EBIT and EBITDA are expected to keep their satisfactory level around 12% and 25% respectively. The management will keep a focus on cost of sales which are expected to keep their current level in Russian Rouble.

8 EVENTS AFTER THE BALANCE SHEET DATE GROUP MANAGEMENT REPORT AS AT 31 MARCH Moody s Investors Service (Moody s) has confirmed in April the Ba3 corporate family rating (CFR) of C.A.T. oil with stable outlook. According to Moody s the rating remains supported by C.A.T. oil s robust business model with a well-invested modern asset base, track record of strong financial performance and sound liquidity profile. These factors provide sufficient flexibility to weather risks related to adverse market conditions and heavy exposure to rouble depreciation, due to currency mismatch between C.A.T. oil s rouble revenues and euro debt. Moody s expects that in 2016 C.A.T. oil s operating performance and financial metrics will remain fairly strong. Although in euro terms Moody s expects further reduction in the company s revenues as a result of ongoing rouble depreciation, its rouble revenues should remain flat based on existing contracts. The stable rating outlook reflects Moody s expectation that C.A.T. oil will continue to demonstrate healthy operating and financial results during market downturn and to maintain a strong liquidity profile and conservative financial policy. Vienna, May 2016 Management Board Yury Semenov Chief Executive Officer Valeriy Inyushin Chief Financial Officer

9 2 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH 2016

10 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2016 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH in TEUR Notes 31 March December 2015 ASSETS Non-current assets 153, ,410 Intangible assets Property, plant and equipment 2 151, ,469 Other assets Deferred tax assets 6 1,578 1,823 Current assets 162, ,850 Inventories 3 18,761 17,017 Trade receivables 4 70,920 75,293 Bank deposits 12,792 11,857 Other receivables 4 10,992 11,206 Tax assets 4 1,448 1,012 Cash and cash equivalents 47,864 28,465 Balance sheet total 316, ,260 EQUITY AND LIABILITIES Equity 159, ,475 Share capital 5 48,850 48,850 Capital reserve 111, ,987 Retained earnings 199, ,375 Remeasurement of defined benefit plans Currency translation reserve (201,145) (210,890) Non-current liabilities 104, ,152 Non-current financial liabilities to related parties 7, , ,000 Deferred tax liabilities 6 3,854 3,310 Employee benefits Current liabilities 51,924 51,633 Current financial liabilities to related parties 8 5,763 4,754 Trade payables 8 31,476 25,460 Other liabilities 8 13,763 20,567 Advance payments received 8 26 Income tax payables Balance sheet total 316, ,260

11 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH CONDENSED CONSOLIDATED INCOME STATEMENT FOR THE THREE MONTHS ENDED 31 MARCH 2016 in TEUR Notes Q Q (restated) Sales revenues 61,052 72,709 Cost of sales 9 (51,952) (61,996) Gross profit 9,100 10,713 Administrative expenses (3,792) (4,126) Other operating income Operating result 5,445 6,762 Finance income 1,078 1,374 Finance costs (1,211) (1,521) Financial result (133) (147) Profit before tax 5,312 6,615 Income tax 6 (997) (1,130) Profit after tax from continuing operations 4,315 5,485 Loss before tax from discontinued operation (43) (7) Profit 4,272 5,478 Basic earnings per share in EUR Diluted earnings per share in EUR CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED 31 MARCH 2016 in TEUR Notes Q Q (restated) Profit after tax 4,272 5,478 Items that may be reclassified to profit or loss Foreign currency translation differences for foreign operations: Functional currency 1 3,266 6,424 Net investments 1 7,061 16,234 Income tax effect related to net investments (582) (185) Other comprehensive income 9,745 22,473 Comprehensive income 14,017 27,951

12 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THREE MONTHS ENDED 31 MARCH 2016 in EUR thousand Share capital Capital reserve Retained earnings Remeasurement of defined benefit plans Currency translation reserve Functional currency Net investments Total equity Balance at , , , (81,132) (91,858) 168,913 Profit after tax 5,478 5,478 Foreign currency translation differences for foreign operations: Functional currency 6,424 6,424 Net investments, net of related tax (restated) 16,049 16,049 Comprehensive income 5,478 6,424 16,049 27,951 Balance at (restated) 48, , , (74,708) (75,809) 196,864 Balance at , , , (89,084) (121,806) 145,475 Profit after tax 4,272 4,272 Foreign currency translation differences for foreign operations: Functional currency 3,266 3,266 Net investments, net of related tax 6,479 6,479 Comprehensive income 4,272 3,266 6,479 14,017 Balance at , , , (85,818) (115,327) 159,492

13 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH CONSOLIDATED CASH FLOW STATEMENT FOR THE THREE MONTHS ENDED 31 MARCH 2016 in EUR thousand Notes Q Q Profit before tax 5,269 6,608 Depreciation and amortization 2 9,975 9,499 Gain on the disposal of fixed assets (96) (20) Non-cash changes from profit tax / other positions (60) 652 Loss/(gain) from exchange rate changes 272 (788) Net finance income and costs (139) 935 Income taxes paid (1,261) (1,791) Change in Working Capital 5,322 (19,670) Change in inventories (969) 1,202 Change in trade and other receivables 7,557 (2,425) Change in trade and other liabilities (1,266) (18,447) Cash flows from operating activities 19,282 (4,575) Purchase of property, plant and equipment (2,293) (14,663) Proceeds from sale of equipment Addition to the cash deposits (15,774) Withdrawal of cash deposits 15,222 Interest received 834 Cash flows used in investing activities (1,858) (14,468) Cash proceeds from receiving of loans 1,035 Finance interest 102 Cash flows from financing activities 1,137 Effect of exchange rate changes on cash 1,975 1,229 and cash equivalents Net change in cash and cash equivalents 19,399 (16,677) Cash and cash equivalents at 01 January 28,465 58,238 Cash and cash equivalents at 31 March 47,864 41,561 Of which: cash flows from discontinued operation Cash flows from operating activities (20) 11

14 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS ACCOUNTING IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) AS ADOPTED BY THE EU The condensed consolidated interim financial statements, which comprise C.A.T. oil AG (the Company ) and its subsidiaries (together with the Company referred to as the Group ) as at and for the three months ended 31 March 2016 were prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the European Union (EU) and as applicable for interim financial reporting. In accordance with IAS 34 the condensed consolidated interim financial statements have been prepared on a condensed scope and, therefore, should be read in connection with the most recent consolidated financial statements prepared as at 31 December ACCOUNTING POLICIES The accounting pronouncements required to be applied for the first time in financial year 2016 have no impact on the presentation of Group s assets, finances and earnings situation. A breakdown of these accounting pronouncements is provided in the notes to the consolidated financial statements for the year ended 31 December Except for as disclosed in the following section Restatement of prior period information the accounting principles and practices as applied in the Group condensed consolidated interim financial statements correspond to those pertaining to the annual consolidated financial statements for the year ended 31 December 2015 The consolidated income statement is presented in accordance with the cost of sales method. The Group s condensed consolidated interim financial statements have been prepared in Euro. All figures are indicated in TEUR, except as stated otherwise. When indicating amounts in TEUR, rounding differences may arise. The Group condensed consolidated interim financial statements are published in German and English language. The German version of the condensed consolidated interim financial statements prevails. SCOPE OF CONSOLIDATION The scope of consolidation is unchanged in comparison to the balance sheet date 31 December 2015.

15 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH RESTATEMENT OF PRIOR PERIOD INFORMATION The Company corrected the error which was arisen in prior period. The adjustment was made as a reclassification of deferred income tax effects related to net investments in foreign operation. This adjustment affected both deferred income tax expenses and benefits recognized in the income statement and in other comprehensive income. As a result of the adjustment the following lines items in the condensed consolidated interim financial statements have been changed in the corresponding prior period financial information: Adjustment of comparable information for three months ended 31 March 2015 decreased tax expense by TEUR 185 (increase in net income) and increased other comprehensive loss by TEUR 185 (decrease in net investment equity component); Adjustments mentioned before affected net income and thus earning per share changed as follows: in EUR thousand Q Q (restated) Common stock thousand 48,850 48,850 Profit after tax TEUR 5,300 5,485 Earnings per share EUR CURRENCY TRANSLATION In the interim financial statements of the consolidated companies, transactions in foreign currency are translated into the functional currency (which is usually the local currency of the country of domicile) at the respective rates valid during the performance months on the basis of the official exchange rates of the Russian and European Central banks. The interim financial statements of the Russian companies are translated into the presentation currency (EUR) using the official exchange rates of the Russian Federation. The relevant exchange rates used for foreign currency translation in relation to the EUR are as follows: Currency (1 EUR=) Closing rate as at 31 March 2016 Closing rate as at 31 December 2015 Average rate Q Average rate Q Russian Rouble (RUB) US-Dollar (USD) The relevant exchange rates used for foreign currency translation in relation to the U.S. dollar are as follows: Currency (1 USD=) Closing rate as at 31 March 2016 Closing rate as at 31 December 2015 Average rate Q Average rate Q Russian Rouble (RUB)

16 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH NON-CURRENT ASSETS Changes in selected non-current assets between 1 January and 31 March are as follows: in EUR thousand Carrying amount 01 January 2016 Additions Disposals Currency translation Depreciation Carrying amount and amortization 31 March 2016 Intangible assets 97 (12) (30) 55 Property, plant and equipment 154,469 1,396 (57) 5,818 (9,945) 151,681 in EUR thousand Carrying amount 01 January 2015 Additions Disposals Currency translation Depreciation Carrying amount and amortization 31 March 2015 Intangible assets (39) 236 Property, plant and equipment 194,689 14,663 (176) 16,256 (9,460) 215,972 Goodwill 2, ,521 As at 31 March 2016 Property, plant and equipment includes advances given for property, plant and equipment in the amount of TEUR 232 (31 December 2015: TEUR 387). 3. INVENTORIES in EUR thousand 31 March December 2015 Spare parts and other materials 15,726 14,119 Raw material 1,355 1,560 Fuel and lubricants 1,680 1,338 18,761 17,017 In the period 1 January to 31 March 2016, reversal of write-down of inventory increased operating profit by TEUR 4 (in the period 1 January to 31 March 2015: TEUR 153 decrease in operating profit). 4. CURRENT RECEIVABLES in EUR thousand 31 March December 2015 Trade receivables 70,920 75,293 Other receivables 10,992 11,206 Tax assets 1,448 1,012 83,360 87,511 In the period 1 January to 31 March 2016, write-down of trade receivables reduced operating profit by TEUR 81 (in the period 1 January to 31 March 2015: TEUR 461). Other current assets include receivable from related parties (CAT. Holding (Cyprus) Ltd.)amounted to TEUR 7,716 (31 December 2015: TEUR 7,716).

17 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH EQUITY Share capital as at 31 March 2016 amounted to TEUR 48,850 (31 December 2015: TEUR 48,850). 6. DEFERRED TAX in EUR thousand Q Q (restated) Current tax expenses 777 2,019 Deferred tax expense (income) relating to the origination and reversal of 101 (882) temporary differences Withholding tax 48 Income taxes from previous years 71 (11) Current and deferred tax expenses 997 1,126 Income tax expenses of discontinued operations include expense in the amount of nil resulting from the tax expense under Austrian corporate tax law (in the period 1 January to 31 March 2015: TEUR 4). Deferred taxes relate to the following items: 31 March December 2015 in EUR thousand Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities Tax loss carryforwards 7,717 6,709 Deferred expenses/liabilities 120 (879) 505 (351) Fixed assets/depreciation (9,005) (8,698) Other 392 (621) 972 (624) Netting (6,651) 6,651 (6,363) 6,363 1,578 (3,854) 1,823 (3,310) 7. NON-CURRENT LIABILITIES As at 31 March 2016 non-current liabilities include financial liabilities against CAT. Holding (Cyprus) Ltd. amounted to TEUR 100,000 (31 December 2015: TEUR 100,000). 8. CURRENT LIABILITIES in EUR thousand 31 March December 2015 Financial liabilities against related parties 5,763 4,754 Trade payables 31,476 25,460 Other liabilities 13,763 20,567 Advance payments received 26 Income tax payables ,924 51,633 The financial liabilities against related parties comprise interest expenses accrued on the loans (see notes 7 and 12).

18 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH COST OF SALES in EUR thousand Q Q Raw materials 19,749 22,572 Direct costs 10,727 16,312 Depreciation 9,873 9,377 Wages and salaries 8,159 9,132 Social tax 2,620 3,014 Other costs 824 1,589 51,952 61, EARNINGS PER SHARE Earnings per share are calculated in accordance with IAS 33 by dividing the net profit for the Group by the average number of shares. There is no dilutive effect. in EUR thousand Q Q (restated) Common stock thousand 48,850 48,850 Profit after tax TEUR 4,315 5,485 Earnings per share EUR The financial performance of the discontinued operation affects the earnings per share insignificantly. 11. SEGMENT REPORTING For management purposes the Group is organized into business units based on their services, and has the following reportable operating segments: well services - services for hydraulic fracturing (operated by OOO CATKoneft); drilling, sidetracking, integrated project management (IPM) services for conventional drilling, sidetrack drilling (operated by OOO C.A.T. oil Drilling and OOO CATOBNEFT). Management monitors operating results of its business units separately for the purpose of making decisions and performance assessment. Segment performance is evaluated based on financial information prepared in accordance to IFRS. Transactions between the business segments are conducted on normal commercial terms and conditions. Reconciliation includes amounts related to corporate activities which are not allocated to operating segments and the reconciliation of the total reportable segments amounts to the financial statements. Segment information as at and for the three months ended 31 March 2016 and 31 March 2015 is presented below.

19 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH Reporting segments: Q1 2016: in EUR thousand Well Services Drilling Sidetracking IPM Total segments Reconciliation Group External sales 35,079 25,968 61, ,052 Group sales (335) Total sales 35,270 26,112 61,382 (330) 61,052 Operating result 5,033 1,496 6,529 (1,084) 5,445 Interest income and expenses 139 Other financial result (272) Profit before tax 5,312 Income tax (997) Profit after tax 4,315 Reporting segments: Q1 2015: in EUR thousand Well Services Drilling Sidetracking IPM Total segments Reconciliation Group External sales 40,337 32,360 72, ,709 Group sales (624) Total sales 40,797 32,524 73,321 (612) 72,709 Operating result 6,858 1,178 8,036 (1,274) 6,762 Interest income and expenses (935) Other financial result 788 Profit before tax 6,615 Income tax (1,130) Profit after tax 5, RELATED PARTIES As at 31 March 2016 the non-current financial liabilities against CAT. Holding (Cyprus) Ltd. amounted to TEUR 100,000 (31 December 2015: TEUR 100,000). In the period 1 January to 31 March 2016, the interest expenses resulting from these financial liabilities amounted to TEUR 1,009 (in the period 1 January to 31 March 2015: TEUR 1,032). This corresponds to an average interest rate of 3.87 % (in the period 1 January to 31 March 2015: 4.4 %).

20 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH The Group has conducted the following transactions with related parties: Transaction value Outstanding balance Transaction description in EUR thousand Q Q Mar Dec 2015 Parent company: A2C Treuhand Wirtschaftsprüfungsgesellschaft mbh, Hamburg 84 Accounting services fee Fairtune East Ltd., Nicosia Rental fee Subsidiaries: CAT GmbH Consulting Agency Trade (Cyprus) Ltd., Nikosia Consulting Fairtune East Ltd., Moscow Rental fee Remuneration of key management personnel was as follows: Management Board remuneration in EUR thousand Total Q Second level management remuneration in EUR thousand Q Q Second level management salaries Additional information on transactions and balances with related parties is disclosed in notes 7 and FINANCIAL INSTRUMENTS Carrying amounts of Financial Instruments were as follows: Financial assets measured at amortised costs in EUR thousand 31 March December 2015 Cash and cash equivalents 47,864 28,465 Bank deposits 12,792 11,857 Trade receivables 70,920 75,293 Receivables from related parties 7,716 7,794 Other short term receivables 1, , ,322

21 GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH Financial liabilities measured at amortised costs in EUR thousand 31 March December 2015 Long term debts 100, ,000 Short term debts 5,763 4,754 Trade payables 31,476 25,460 Other short term payables 2,126 2, , ,997 Group s financial instruments carrying amounts correspond to the fair value. There were no financial instruments measured at fair value as at the reporting date. 14. LITIGATIONS AND CLAIMS On 10 April 2015 the Company filed a statement of facts at the Central Public Prosecutor s Office for the Prosecution of Economic Crimes and Corruption in Vienna. The statement of facts refers to circumstances, which set out reasons substantiating reasonable suspicion of breach of trust that came to the attention of the new Management Board. With filing dated 9 September 2015 the Company extended its private claim to TEUR 27,500. Since the investigations are still at an early stage, further developments and outcome, including the actual loss of the Company in this regard, are not yet possible to determine reliably. The criminal complaint relates to transactions in connection with a procurement system, which was established at the Group in recent years. In purchasing fixed assets for business operations of subsidiaries of C.A.T. oil AG, companies not belonging to the Group were used as intermediaries. Since the investigations are still at an early stage, further developments and outcome, including the actual loss of the Company in this regard, are not yet possible to determine reliably. C.A.T. oil AG filed against former members of Management Board claim amounting to TEUR 1,540 due to the unlawful and premature payment of compensation. C.A.T. oil AG is currently assessing potential claims regarding the activities of its subsidiary C.A.T. GEODATA GmbH, which generated significant operational losses in the past. For that reason, C.A.T. oil AG filed a criminal complaint to the Public Prosecutor s Office in Vienna on 17 November 2015 within the pending criminal proceedings. It is uncertain at this stage if at all and in which amount these losses are in connection with potential criminal activities. These questions will be subject to the investigations of the Public Prosecutor. 15. EVENTS AFTER THE REPORTING DATE No material events occurred after the balance sheet date. Vienna, 27 May 2016 Board of Management Yury Semenov Chief Executive Officer Valeriy Inyushin Chief Financial Officer

22 FINANCIAL CALENDAR GROUP CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH June th Annual Shareholders Meeting 26 August 2016 Publication of half-year report 25 November 2016 Publication of Q3 interim report IR-CONTACT AND IMPRINT C.A.T. oil AG Kärntner Ring Vienna Phone: Fax: ir@catoilag.com Internet: Disclaimer This document contains certain statements that constitute neither reported results nor other historical information. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond C.A.T. oil AG s ability to control or precisely estimate, such as future market and economic conditions, the behaviour of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies, and the actions of government authorities. Readers are cautioned not to place undue reliance on these forwardlooking statements, which apply only as of the date of this document. C.A.T. oil AG does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document. This document does not constitute an offer to sell or the solicitation of an offer to subscribe to or to buy any security, nor shall there by any sale, issuance, or transfer of the securities referred to in this document in any jurisdiction in which such act would breach applicable law. Copies of this document are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed, or sent in or into or from Australia, Canada, or Japan or any other jurisdiction where it would be unlawful to do so. This document represents the Company s judgement as of the date of this document.