NIS GROUP S PERFORMANCE PRESENTATION

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1 NIS GROUP S PERFORMANCE PRESENTATION for first quarter of 2018 April 27th, 2018 Anton Federov Finance, Economics, Planning and Accounting Function

NIS in Q1 2018 Exploration and Production 15 development wells and 1 exploration well drilled in Serbia Successful implementation of the GTM at Mokrin, Jermenovci and Maljurevac- Babusinac fields

2 NIS in Q Exploration and Production 15 development wells and 1 exploration well drilled in Serbia Successful implementation of the GTM at Mokrin, Jermenovci and Maljurevac- Babusinac fields Exploration wells Majd-X-002 and Is-X-007 drilled. Modernisation of Mokring Jug CS is in progress. The reconstruction of fire systems at Velebit 1 GS and Boka LS is underway. The project for Teremia Sever exploration field at Ex-7 and Ex-8 blocks approved. 2

NIS in Q1 2018 Refining A mini overhaul carried out in February by applying modern equipment cleaning methods New burners in the Vacuum Distillation Unit

3 NIS in Q Refining A mini overhaul carried out in February by applying modern equipment cleaning methods New burners in the Vacuum Distillation Unit tested Concrete structure for coking reactor constructed. The structure of two reactors erected for the Bottom of the Barrel complex New gas ejector commissioned 3

NIS in Q1 2018 Sales and Distribution Rebranding was completed at 2 PS 12 February (NIS Petrol) and Vojvoda Misic (GAZPROM).

4 NIS in Q Sales and Distribution Rebranding was completed at 2 PS 12 February (NIS Petrol) and Vojvoda Misic (GAZPROM). Preparation for the introduction of the Drive Cafe concept on all GAZPROM PS in B&H and in Bulgaria. Two new products of their own brand were introduced (G-Drive chewing gum Spearmint and Peppermint ). A new payment function of the On the Road with Us card has been introduced. Transition of water facility Jazak to Block Sales and Distribution. After the rebranding, PS Bagrdan was put into operation on March 14, Begin production and distribution of the new Nisotec Antiled product at PS 4

NIS in Q1 2018 Energy The implementation of TE-TO Pančevo d.o.o. project is in progress. The start of exploitation is expected in Q3 2020. CNG at Žarkovo 2 FS tender launched.

5 NIS in Q Energy The implementation of TE-TO Pančevo d.o.o. project is in progress. The start of exploitation is expected in Q CNG at Žarkovo 2 FS tender launched. The schedule for the construction of the CNG plant at Block 45 FS in Novi Beograd agreed with the Sales and Distribution Block The total contracted electricity trading volume amounts to 1.05 TWh. CNG at Palić field- compressor modification contracted, and technical documentation prepared. Decentralisation of the heat source in the area of the ex Oil Refinery of Novi Sad main equipment delivered. 5

6 Macroeconomic Indicators Dinar strengthens, oil price rises USD/RSD rate -17% Urals RCMB crude price, $/bbl % Average Average Average Average I II III 45 I II III 6

28 1.35 Q1 2018 2018 plan Q1 2017 0.31 0.43 153% 0.

7 HSE Indicators Increasing transparency LTIF RAR 2 Major 1 events Medium events % 28% 69% Minor 226 events 265 HIPO 16,032 16, Q plan Q % 0.17 Q plan Q Q Q Q Q plan Q Q plan 7

8 Key Indicators NIS Group Key indicators UoM Q Q Urals $/bbl % Sales revenues bn RSD % EBITDA bn RSD ,1-20% Net income bn RSD % OCF bn RSD % Accrued liabilities based on public revenues bn RSD % Oil and gas output thou. TOE % Crude oil and semi-finished products output thou. tons % Total petroleum products sales volumes thou. tons % CAPEX bn RSD % Total debt to banks (total debt to banks + letters of credits) mn USD % 8

Motor Fuel Market Trends Q1 2018/2017 There is a negative impact due to increased excise tax and cold weather in March that delayed the beginning of agricultural works to the second quarter. 2.1% Slovenia 2.

9 Motor Fuel Market Trends Q1 2018/2017 There is a negative impact due to increased excise tax and cold weather in March that delayed the beginning of agricultural works to the second quarter. 2.1% Slovenia 2.0% Hungary 1.1% Romania Serbia Increased consumption of diesel fuels The positive effect of infrastructure and construction works (which unexpectedly took place in January and February due to warm winter) Expected consumption of gas oil in March due to the postponement of seeding in agriculture was missed 1.3% Croatia -1.6% Bosnia and Herzegovina +3.2% Serbia 1.1% Bulgaria 9

10 Market Share Serbia Petroleum Products Market Petroleum products market volumes, thou. tons (75%) 197 (25%) 587 (74%) 207 (26%) Q Q % NIS Others The overall consumption of petroleum products only slightly increased: significant growth in consumption was recorded only for bitumen and coke, which is related to favorable weather conditions in January and February The main driver of derivatives consumption was the construction and road industry A cold wave in March postponed the start of agricultural work The main reason for somewhat lower market share in the total consumption of derivatives is the increased import of petrol and lower consumption of oil due to mild winter. 10

11 Market Share Serbia Motor Fuel Retail Market NIS's participation in the retail market is stable. Significant contribution to the preservation of the participation is given by numerous marketing projects and improvement of the concept of loyalty. Retail market, thou. tons % Retail market slightly increased The reduction in the consumption of autogas and gasoline has to do with the rise in prices and the change in the structure of the fleet 155 (44%) 195 (56%) 156 (44%) 196 (56%) NIS Others Q Q

12 Market Share Region Q1 2018/2017 Romania No. of PSs: 18 % total market: 0.9% % retail market: 1.4% Bosnia and Herzegovina No. of PSs : 35* % total market: 13.9% % retail market: 9.1% *and two DODO petrol stations Bulgaria No. of PSs : 35 % total market : 6.5% % retail market : 4.8% 12

13 Operating Indicators Exploration and Production Oil and gas output, thou. TOE % Angola Domestic gas Domestic oil Planned hydrocarbon output achieved Implementation of geological and technical measures 12 wells put into operation In 2018, hydrocarbon reserves increase 0.6% Q Q

14 Operating Indicators Refining Processing volumes increase by 3% Processing volumes aligned with the market demand and refining optimisation Refining of oil and semifinished products, thou. tons % Semi-finished products Imporeted oil Domestic oil Q Q

15 Operating Indicators Sales and Distribution Sales volumes*, thou. tons Q Q *Excluding internal sales +7% Export Wholesale - Serbia Foreign assets Retail - Serbia Retail in Serbia 0.3% increase Wholesale in Serbia 3% increase Export 42% increase Foreign assets 13% increase

16 Financial Indicators EBITDA Negative impact of the exchange rate Negative impact of oil and petroleum product price Decline in domestic oil production EBITDA, bn RSD -20% Q Q

17 Financial Indicators Net Income Net income, bn RSD -31% Lower EBITDA Higher depreciation costs Q Q

18 Financial Indicators OCF Higher inflows resulting from higher prices of petroleum products, Higher liabilities towards the state, Higher liabilities towards suppliers, Lower liabilities for the import of crude oil. OCF, bn RSD +3% Q Q

19 Financial Indicators CAPEX CAPEX, bn RSD +68% CAPEX by segments 1% 0.4% Exploration and Production Services 13% % 49% Refining Sales and Distribution Energy Q Q % Corporate Centers 19

20 Operational Efficiency Improvement Measures Effect on EBITDA, bn RSD Exploration and Production Services Refining Sales and Distribution Energy Corporate Centre NIS 2018 Pervented damage Total NIS M 2018 Measures Pervented damage 20

21 Debt to Banks Maturity and Currency Structure of Credit Portfolio Debt to banks, mn USD Debt to banks, mn USD 31.3.' ' % 31.3.' ' % ' ' ' ' ' Letters of credit ' up to 1 year ' Debt to banks ' over 1 year ' ' ' ' ' , ' ' ' Debt structure: USD 18% EUR 81% Other 0.5% GPN loan -5% 244 mn EUR 21

22 Benchmarking EBITDA margin (%) 4. EBITDA/FTE (thou. USD) 4. Daily volume (t/day) 6.& Share of light products (%) 2. OPEX ($/boe) N/A Data obtained from 2017 reports, except for NIS (3M 2018) *All data for

23 Conclusion Limited possibilities of long-term borrowing Negative trend of HSE indicators Increased sales volumes Favourable macroeconomic conditions Net profit and EBITDA over the plan 23

24 THANK YOU FOR YOUR ATTENTION! 24

25 Disclaimer This presentation has been prepared by NIS j.s.c. Novi Sad ("Company") and consists of a slide show that contain information pertaining to the NIS Group intended to investors. This presentation is not any offer or invitation to tender, or any information on the approval of the offer for sale or purchase or registration of shares or other securities of Company; neither this presentation, nor any of its part, as well as the fact that this presentation is made available or distributed, can be a ground for any contract or investment decision, and it may not be relied upon for this purpose. All visitors of this presentation who consider purchase or sale of securities are hereby warned that any purchase or sale should be undertaken on the basis of the information contained in other publicly available documents, which should be used in accordance with the restrictions contained in these documents. There should be no reliance, for whatever purpose, on the information contained in this presentation, or any content that has been mention when it was made public, or on its completeness, accuracy or veracity. The information specified in this presentation should not be treated as giving investment advice or recommendations. All reasonable measures were taken with a view to ensure that the facts contained in this presentation are accurate and that the opinions expressed are correct and reasonable. This presentation is not adopted by Company s bodies. Consequently, no statement or guarantees, explicit or implicit, in connection with the accuracy, completeness or veracity of information or opinions which are contained or considered in this presentation was not given by or in the name of the Company or any of its shareholders, directors, agents, employees or any other person. Neither the Company nor any of its shareholders, directors, agents or employees or any other person do not accept any responsibility for any loss that may arise on the basis of or in connection with the use of this presentation or its content or in any other way connected with this presentation. Information in this presentation contains a statements on uncertain future events. The statements about uncertain future events include statements that are not historical facts, statements in connection with the intent of the Company and NIS Group, beliefs or current expectations in connection with, among other things, performance results of the NIS Group, the financial situation and their liquidity management, prospects, growth, strategies and industrial branches in which the NIS Group operates. For the reasons which are related to the events and depend on circumstances that may but are not certain to take place in the future, the statements about uncertain future events by their nature involve risks and uncertainty, including but not limited to the risks and uncertainties that the Company and NIS Group have identified in other publicly available documents. The Company warns that there is no guarantee that the statements on uncertain future events will come true in the future and that the actual business results, the financial situation and the liquidity, as well as the development of the industrial branch in which the Company and NIS Group operate, may significantly differ from those presented or reckoned by the statements about uncertain future events which are contained in this presentation. Additionally, and if the results of the business of the NIS Group, its financial condition and liquidity, as well as the development of industrial branch in which the Company and NIS Group operate are in accordance with the statements herein contained about uncertain future events, such results and the development are not indicative of the results and the development in the coming periods. The information contained in this presentation is given on the date of this presentation and their changes are possible without prior notice. No person shall be under any obligation to update and keep current the data herein contained. Once you have visited or read this presentation you shall be considered familiar with the above mentioned constraints.

Quarterly Report for First Quarter of 2018

QUARTERLY REPORT for first quarter 2018 Quarterly Report for First Quarter of 2018 The Quarterly Report for First Quarter of 2018 presents a factual overview of NIS Group s activities, development and