PRESENTATION TO INVESTORS

Transcription

1 Copyright PJSC TATNEFT, 2018 PRESENTATION TO INVESTORS 2Q & 1H 2018 IFRS Results Update Moscow 28 August 2018

2 IMPORTANT NOTICE ABOUT FORWARD-LOOKING STATEMENTS AND DISCLAIMER 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 PJSC 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. 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 EVENTS OR 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. THIS PRESENTATION HAS NOT BEEN VERIFIED PERSUANT TO ANY SPECIAL PROCEDURES AND DESPITE THE USE OF RELIABLE SOURCES, THE COMPANY SHALL NOT BE LIABLE FOR ANY DISCREPANCY WITH FACTUAL DATA. THIS PRESENTATION MAY CONTAIN INADVERTENT MISTAKES AND OTHER DISCREPANCIES. THE COMPANY SHALL NOT BE LAIBLE FOR SUCH MISTAKES AND SHALL BEAR NO OBLIGATION TO CORRECT THEM. IN THIS PRESENTATION TATNEFT MEANS PJSC TATNEFT ; AND TATNEFT, THE COMPANY AND TATNEFT GROUP SHALL MEAN PJSC TATNEFT TOGETHER WITH SUBSIDIARIES. 2

3 1H 2018 CRUDE OIL AND REFINED PRODUCTS OUTPUT PJSC Tatneft th. tonnes/ year 1H 2018 MBbl/ day chg. to 1H ,7 76,2 76,7 Conventional oil 13,181 тыс. тонн в 519 тыс. тонн (2.2%) в тыс. тонн в день день день Highly viscous oil % PJSC Tatneft Total 14, (0.) Subsidiaries (5.5%) Tatneft Group Total 14, (0.) Calculations are based on unrounded data. Crude oil production TANECO refined products output* 1Q 18, th.mt 2Q 18, th.mt Middle Distillates Naphtha Diesel Fuel Kerosene/ Jet fuel Other Total 2,159 2,208 * Including volumes on tolling arrangements with third parties For conversion of tonnes into barrels a conversion factor of bbl/tonne is used. 3

4 2Q 2018 IFRS RESULTS 4

5 KEY FINANCIAL INDICATORS* (in RR bn) Chg. %, 2017 / Q Q 2018 Chg. %, 2Q2018 / 1Q2018 Sales, gross % Export duties & excise tax (104.7) (84.9) (91.5) 8% (21.9) (24.1) 10% Revenue, net % Costs and other deductions % % EBITDA (**) % % EBITDA margin 28% 29% 2 32% 35% EBITDA, adjusted (***) Profit for the period % Profit attributable to Group shareholders % % Free Cash Flow (****) (*) Revenues and costs are presented ex banking activities. (**) We define EBITDA as net revenue on non-banking activities less (a) costs and other deductions on non banking activities less (b) gain/(loss) on disposal of interest in subsidiaries and associates less (c) banking operating results plus (d) amortization and depreciation, according to our consolidated financial statements. EBITDA is non-ifrs measure. (***) Adjusted for the effect of nonrecurring and exceptional items (RR, mln): 13,754 FY2017 and 8,745 FY2016 (please see page 4 of the Directors report for the year ended 31 December 2017 published on the company s web-site). (****) Free Cash Flow in 1Q2018 was affected by net cash outflow from banking operating activities in the aggregate amount of about RR 6.5 billion primarily as a result of scheduled repayment of funds borrowed from the Central Bank of Russia and closing of certain REPO transactions. Unless stated otherwise, all data in this section is based on respective IFRS financial statements of Tatneft. 5

6 Volumes, mln tonnes Volumes, mln tonnes REVENUE* Net Revenue on non-banking activities by product type - dynamics, RR bn % 39% % 8% % 35% Other sales Petrochemicals Refined products sales Crude oil sales 49% 51% 54% 3% 5% % 40% 52% 53% 3% Q Q 2018 * Revenue is presented ex banking activities and includes purchased crude oil and refined products, respectively Crude oil sales by destination market Refined products sales by destination market % 39% 2 5% 54% 5 6 Domestic CIS Non-CIS % 42% 53% 52% Q Q % 43% % 2% 43% % 4% 44% Q Q % 55% Domestic CIS Non-CIS** ** About 6 and 63% of refined products sold for export in 1Q2018 and 2Q 2018, respectively, were naphtha and middle distillates % 49% 6

7 COSTS* Cost per barrel on non-banking activities breakdown**, RR/bbl 1,866 11% 8% 13% 30% 1,747 10% 9% 13% 33% 2,178 10% 8% 11% 28% 2,335 9% 8% 9% 23% 2,680 10% 23% Other expenses Transportation expenses Selling, General and Administrative expenses Operating expenses 38% 35% 43% 51% 53% Taxes other than income taxes Q Q 2018 * Costs are presented ex banking activities ** Cost of purchased products is not included. Taxes other than income taxes exclude export duties and excise taxes Lifting costs, RR/bbl Refining expenses TANECO, RR/t per tonne of refined products output , ,421 1, ,237 1, , ,8% avg 2016 avg 2017 avg 1Q2018 avg 2Q2018 evg 7

8 CAPEX AND DEBT PROFILE 1H2018 Additions to PPE by segments, IFRS, RR bn* Debt profile (at period ends), RR bn Exploration & Production Short-term debt Long-term debt, net of current portion Refining & Marketing, TANECO construction 70 Net Debt Refining & Marketing, Other Petrochemicals RR bn Others H 2018* * Approx. 5 of gross total debt is attributed to Bank ZENIT * Based on Consolidated Statement of Cash Flows. For more information see IFRS consolidated financial statements of Tatneft RR bn H 2018 Net Debt Total 4.0 (35.2) Net Debt without Bank ZENIT 8.1 (35.9) 8

9 Web-site: Contacts: Headquarters: 75, Lenin st., Almetyevsk, Republic of Tatarstan, Russian Federation, IR. Phone: