Presentation for investors and shareholders for February 14 th, 2013 Novi Sad Investor Relations

Transcription

1 Presentation for investors and shareholders for 2012 February 14 th, 2013 Novi Sad Investor Relations

2 Disclaimer This presentation has been prepared by NIS a.d. Novi Sad (the Company ), and comprises the slides for a presentation to investors concerning the Company. Presentation does not constitute or form part of any offer or invitation, or any solicitation of any offer to sell or purchase or subscribe for, any shares or other securities representing shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any viewer of this presentation considering a purchase of such securities is hereby reminded that any such sale or purchase should be made solely on the basis of the information contained in other publicly available documents and will be subject to the restrictions set out therein. No reliance may be placed for any purposes whatsoever on the information contained in this presentation, or any other material discussed at any presentation or on its completeness, accuracy or fairness. The information in this presentation should not be treated as giving investment advice or recommendation. All reasonable measures are taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and reasonable. However, the contents of this presentation have not been adopted by the corporate body s of Company. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this presentation. None of the Company or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. 2

3 The information in this presentation includes forward-looking statements. These forward-looking statements include all matters that are not historical facts, statements regarding the Company s intentions, beliefs or current expectations concerning, among other things, the Company s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties to be set in other publicly available documents, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. No person is under any obligation to update or keep current the information contained herein. By attending the presentation you confirm that you have read and understood foregoing limitations. 3

4 Mission, vision and values of the company MISSION To give the people of Balkan region energy for movement towards better by responsible use of natural resources and modern technology. VISION Vertically integrated energy company NIS will become a recognized leader in Balkan region in its industry by dynamics of sustainable development and increase of efficiencies, demonstrating high social and ecological responsibility and modern standards of customer service. VALUES OF THE COMPANY EXPERTISE gaining up-to-date knowledge for the goal of constant professional development, and the ability to implement it in an actual business processes. POSITIVISM AND COOPERATION readiness to participate in multifunctional groups and projects, eagerness to meet demands of colleagues from other units of the company, willingness to exchange information, ability to work in a team. INITIATIVE AND RESPONSIBILITY finding and suggesting new solutions both in the working environment, and in the sphere of company interests. COLLECTIVE RESULTS collective effort in achieving a visible and meaningful result, a desire to succeed and provide each other with needed assistance. 4

5 NIS heads towards achievement of the second objective of its strategy by Verticaly integrated Company on Balkans The implementation of the transformation and modernization program that will enable a profitable and stable long-term growth Emerging player in the Balkan market To become vertically integrated oil company with the fastest growth in the Balkans in production of crude oil and gas, production and supply of petroleum products Efficiency leader in the Balkans To become a leading energy company a leader among competitors in South European market. To become a regional player with the fastest growth in production, refining and retail sales volume the Balkans. 5

6 Key emphasis in 2012 active development of regional objectives Hungary First explorative well drilling completed Activities in the area of exploration and production continued Bosnia and Herzegovina Start up of 6 PSs NIS-Petrol Acquisition of OMV retail network with 28 PSs Exploration activities of Jadran naftgas continued. 6 Bulgaria Start up of 14 PSs Acquisition of oil depot in Kostin Brod Romania Start up of GAZPROM PS Acquisition of a land lot for construction of oil depot in Timisoara Activities in the area of exploration and production continued

7 Accelerated technological development as a characteristic of NIS business operations in 2012 Exploration and Production: Procurement of modern equipment for seismic explorations and drilling Automation of oil and gas production Implementation of well fracturing technology Implementation of slim hole technology in drilling small diameter wells Refining: Completion of construction and start up of MHC/DHT plant in RNP Construction of Hydrogen plant in RNP Contruction of SARU plant Cosntruction of modern complex for LPG storage Sales and Distribution: Installation of oil separators in PS NIS Petrol Construction of 2 modern bunkering stations 7

8 New Development Directions in 2012 Energy: NIS became a partner in wind park project Plandište Initiation of small cogeneration project in NIS wells in Vojvodina Modernization of TETO Novi Sad and construction of TETO Pančevo under preparation Sales and Distribution: 2 bunkering stations started up in 2012 Initiation of cooperation with Nikola Tesla airport (Belgrade) and Konstantin Veliki airport (Niš) related to jet fuel supply Active development of sales of NISOTEC oils and lubricants HIPP: Revitalization of refining capacities in HIPP initiated with NIS Support Recovery of operations in two plants Initiation of financial consolidation of HIPP 8

9 Successful completion of RNP modernization project Gazprom Neft fulfilled all obligations taken over under acquisition agreement. RNP modernization and ecological project worth of 500 million Euro Deadlines The project was completed by deadlines agreed under the agreement with a main contractor: mechanical readiness achieved readiness for launching achieved production of commercial products in accordance with Euro 5 standards Budget In spite of significant project modifications (more than 30% of equipment and business operations), initially approved project budget was complied with with the savings of 2% Safety More than 5 million safe hours ensured during the project due to implementattion of best practices Image Official start up of a new complex on 1 November 2012 in presence of GPN top management and Serbian governmental officials 9 Experience and human resources Valuable experience in implementation of big investment projects makes one of world s leaders in this area

10 First petrol station under GAZPROM brand in the region started up in December 2012 Outer looks of PS under GAZPROM brand Serbia Start up of the first PS on Romania Start up of the first PS on Bulgaria Start up of the first PS by Bosnia and Herzegovina Start up of the first PS in Q3 2013

11 2012: HSE indicator Investment into environmental projects, mln. USD Transparency index increase Perforation coefficient * 23% 3% 3 major accidents serious incidents % 100% 80% -36% 29% , BP minor incidents potentially 6683 hazardous 6146 situations. 60% 40% 20% 0% 2,47 2,23 1, BP LTIF RAR Investigated cases 120% 100% 80% 60% 40% 20% 0% 0,75 0,71 0, BP World oil industry average indicators LTIF = 0,55-31% 1% -27% 110% 108% 106% 104% 102% 100% 98% 96% 94% 1,95 1,80 9% 1, План Promoting awareness of regulations in the field of traffic safety has resulted in a decrease of road accidents 70% 60% 50% 40% 30% 20% 10% 0% 37% 320% 67% 49% 15% Perforation coefficient is relation between the number of perforations, multiplied by 100 based on the total oil pipeline length in km LTIF - Lost time injury frequency rates (relation between the number of injured during accidents at work and the total working hours, multiplied by 100 thousand RAR - Road Accident Rates - relation between the number of road accidents as opposed to mileage in km, multiplied by 1 million

12 Macroeconomic indicators GDP*, billion of RSD Unemployment rate*, % 1.860, , ,3 20,0% 24,4% 25,6% 2010 ** Oil price, USD/bbl 2010 ** USD/RSD rate 0,3% 79,5 111,3 111,6 77,7 73,3 88, Source: National Statistical Office, Serbian Statistical Office, International Monetary Fund ** Forecast 2010

13 2012: Key indicators Q Q % Јединица % Key indicators Q4 12/Q4 11 мере 2012/ ,3 13,5 28% Net profit billion of RSD 49,5 40,6 22% 18,4 20,1-8% EBITDA* billion of RSD 66,5 52,4 27% 64,2 53,9 19% Sales (without excise tax) billion of RSD 226,2 186,9 21% 9,4 17,6-47% OCF billion of RSD 36,8 35,0 5,2% 28,7 20,9 37% Taxes and fiscal obligations** billion of RSD 91,4 84,7 8% 438,1 409,4 7% Domestic oil and gas production thous. cond. tons *** 1.693,6 1520,6 11% 291,2 272,6 7% Domestic oil production thousand tons 1.124,8 1020,5 10% 682,3 604,7 13% Oil refining volume thousand tons 2.142,3 2359,0-9% 688,6 629,3 9% Total sales of oil products**** thousand tons 2.395,1 2428,3-1% 600,6 592,5 1% Oil products local market sales thousand tons 2.121,6 2182,0-3% 174,1 129,5 34% Retail thousand tons 596,9 518,6 15% ,7 3% Light oil products sales thousand tons % 17,83 84,9-79% CAPEX from GPN loan**** million of EUR 127,50 201,3-37% 18,09 6,85 164% CAPEX from OCF (NIS projects) billion of RSD 36,36 13,9 163% % Total bank indebtedness****** million of USD % Calculation of percentage values is based on values expressed in millions of RSD All possible discrepancies in percentage values and total values are due to rounding errors Values for CAPEX from GPN loan and CAPEX from OCF are without VAT *EBITDA = Sales (without excise tax) inventories ( of oil, oil products and other products) operational expenditure (OPEX) other costs, which management cannot affect ** Taxes paid and fiscal obligations includes taxes, duties, fees and other public revenues. *** 1,256 m3 gas = 1 conditional ton of oil **** Under the Agreement of sale and purchase of shares of NIS a.d Novi Sad, clause 8.1.2, JSC Gazprom Neft (GPN) has an obligation to provide EUR 500 million to NIS a.d. Novi Sad by way of special purpose loans in order to implement NIS Novi Sad technological complex reconstruction and modernization program. CAPEX from GPN loan does not include letters of credit. All obligations of Gazprom Neft under the acquisition agreement were fully met in April 2012 and in the second half of 2012 NIS started with loan repayment ****** Total bank indebtedness = Total debt to banks + letters of credit 13

14 Trend of fuel consumption decrease in 2012 continues in the whole region Hungary +0,2% 1,8% PFC Forecast Forecast based on statistical estimates Slovenia +1,36% - 0,88% ,45% -8,68% 2012 Romania -1,43% -3,53% 2012 Serbia* -1,47 % - 9,4% Croatia 2012 Bulgaria -1,06% n\a 2012 Bosnia and Herzegovina 2012 Macedonia ,16% +1,8% -4% n\a ,83% n\a Greece 14 Sources: - PFC : Downstream Monitoring Service Europe (2012), - Eustat ( ) -1,53% -12,39% 2012

15 Financial Indicators 28% Net profit 69% 22% Increase in net profit: Increase of market share Increased business efficiency Cost cuttings 13,5 8,4 13,6 10,2 17,3 40,6 49,5 Implementation of investments resulted in increase of resource base and domestic oil and gas production increase Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Net profit before FX differences Increase in net profit before FX differences: -15% 78% 37% Increased business efficiency Implementation of investments resulted in increase of resource base and domestic oil and gas production increase 18,4 12,9 19,0 8,8 15,7 41,1 56,5 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12-5,0-4,5 Net FX differences 132% 16% 1,4 1,6-5,4-0,5-7,0 Negative net FX differences : Increase in USD/RSD rate 6,6% or 5,31 RSD Increase in EUR/RSD rate 8,7% or 9,077 RSD x13 15 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 All possible discrepancies in percentage values and total values are due to rounding errors

16 Financial Indicators 20,1 15,6-8% 21,3 EBITDA 63% 18,4 11,3 52,4 27% 66,5 Increase of EBITDA : Increased business efficiency Implementation of investments resulted in increase of resource base and domestic oil and gas production increase Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Sales 15% / 19% 0,004% / 3% 62,2 54,1 Angolа 45,6 Angola 0,01 2,00 Angola 1,1 1,8 54,0 62,2 62,2 53,1 43,8 64,2 Angola 18% / 21% 226, ,9 Angola Increase in Sales: Increase in crude oil price in 2012, comparing to last year, is app +1%. Increase of retail prices of oil derivatives 2012 for app +16 compared to 2011 БМБ 95 - increase in retail prices for +14,7% (average prices in 2011 were app 129,40 RSD per liter, and in 2012 they were app 148,50 RSD per liter) Д2 - increase in retail prices for +16,5% (average prices in 2011 were app 122,70 RSD per liter, and in 2012 they were app 142,90 RSD per liter Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '11-47% OCF 21% 5,2% Increase of OCF : Increase of account receivables from clients Lower import of crude oil 16 17,6-2,0 21,7 7,7 9,4 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 ' All possible discrepancies in percentage values and total values are due to rounding errors *EBITDA = Sales (without excise tax) inventories (oil, oil products and other products) operational expenditure (OPEX) other costs, which management cannot affect

17 Oil and gas production Domestic oil and gas production (in thousand conditional tons)* 7% 1,9% 11% Increase in domestic oil and gas production by 11% compared to 2011: Increase in domestic gas production by 9% у compared to Implementation of geological technical measures Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Domestic oil production (in thousand tons) 6,8% 1,7% 10% Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 ' м 3 of = 1 tone equivalent of oil All possible discrepancies in percentage values and total values are due to rounding errors

18 Refining ,3% -30,4% Refining volume (in thousand tons) -123,1% 31,1% 13% ,5% -50,8% Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4'12 Domastic oil 100% 83% 123% 574 Imported oil Refining per Refineries % Refining is decreased by 9% comparing to 2011: % -25% Planned overhauls of Pancevo Refinery were realized in following periods: February 22rd April 2nd 2012 June 21st July 16th 2012 August 30th October 2nd 2012 Finalizing and testing before commissioning new MHC/DHT facility in Pancevo Refinary Refining in 2012 is in line with operational plans formed according to market demand for oil and oil derivatives which is also reason for decrease in refininig -2% +2% -1% +13% 85% 87% 86% 84% 96,5% 86% 83,5% +2% 15% 13% -2% 14% +1% 17% -13% 3,5% Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 14% 16,5% Pancevo Refinery Novi Sad Refinery 18 All possible discrepancies in percentage values and total values are due to rounding errors

19 Sales and Distribution Oil derivatives sales (in thousand tons) Sales structure per oil derivatives (in thousand tons) -24% % 9% % % % -1% -6% 63 25% -31% 67 7% % 0 н/а 0,374,0 x3 1,7 1, % % 155-2% % % -3% % Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 All possible discrepancies in percentage values and total values are due to rounding errors 11% 20% 8% Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12-2% 36% ,8% , % ,3% -8,3% Retail Export Wholesale Retail (abroad assets) 639 White products Black and other products n/a -1% Retail - abroad assets Total sales of oil derivatives decreased by 1,3% compared to 2011: Retail increase by 15% Sales increase is recorded for all petroleum products except BMB-95. The growth in sales of diesel fuel D-2 is affected by the realisation of Agreement between NIS and Ministry of Agriculture, and stating from October also by the increase in prices of EL LU due to rising the excise tax and VAT Expanding the network of PS that sell LPG Wholesale - decrease by 8.3% Reduced fuel consumption BMB 95 Reduced sales of D2 due to transfer of these amounts in the retail channel and import of LU EL by competitors Export - an increase of 9,8% 0 Increased demand for fuel oil in the domestic market and reduction of discount given to traders in the international market at the same time, has led to a reduction in the volume of export deliveries and to their higher efficiency as compared to last year. However, despite the reduction of export deliveries of fuel oil total exports have increased due to the increase of exports of other products 3,8

20 Market Share RS Market volumes* in thousands of tones -9% Drop in economic activities and increase in unemployment rate (approximately 27%) are two most significant factors causing lower consumption of motor fuel. Additional negative impact on consumption of motor fuels was caused by VAT and diesel and LPG excise rate increase as of 1 October. Although retail market volume was reduced in the Republic of Serbia, NIS retail sale was increased by 15%, and drop in wholesale activities was lower than market trend. RS retail market volumes in thousands of tons -3% NIS retail activities in RS market in thousand tons +15%

21 Structure of bank indebtedness Obligation of GPN from SPA fulfilled Total indebtness decreased by 40 million USD comparing to December 31st, 2011 Total debt to banks (in millions of USD) GPN loan (in millions of EUR) Long-term* Medium-term* Short-term* Кретање укупне задужености према банкама у милионима USD (total indebtedness) Structure of total debt to banks per currency in % % 1% 1% 1% 5% 5% 6% 7% 5% 5% 6% 6% 32% 26% 25% 20% 20% 19% 21% 24% 25% 25% 29% 29% 18% 26% 67% 73% 74% 79% 74% 76% 73% 70% 70% 70% 66% 65% 56% Total debt Letters of credit Остало EUR USD 21 All possible discrepancies in percentage values and total values are due to rounding errors *Term structure of the debt to banks is shown according to Contract terms and not by maturity of the debt as of December 31 st 2012

22 Investments 22 Q4 ʼ11 Q4 ʼ12 Sources of investment funding 8,70 2,40 CAPEX from GPN loan 20,49 14,47 0,72 0,24 Ecology 2,15 2,50 7,98 2,16 MHC/DHT 18,33 11,97 6,85 18,09 CAPEX from OCF (NIS funds) 13,90 36,36 0,24 0,42 Ecology 0,26 0,74 1,15 0,46 MHC/DHT 1,24 1,89 0,02 0,08 Angola PSA 0,19 0,40 4,37 13,64 Projects with direct economic effect 9,44 26,24** 1,05 3,18 Projects without direct economic effects 2,71 6,65 0,02 0,31 Project-researching activities 0,06 0,43 15,55 20,49 TOTAL: 34,39 50,83 CAPEX from GPN loan and CAPEX from NIS OCF in 2012 (in billions of RSD) 14,5 CAPEX from GPN loan 36,4 CAPEX from OCF All possible discrepancies in percentage values and total values are due to rounding errors *PSA - Production Sharing Agreement; **Including letters of credit for drilling facility of 9 million USD * in billions of RSD (VAT excluded) The most important projects in the oil and gas production are: Investments in concession rights (RAG (Hungary)) Geological explorations in the area of Vojvodina Development drilling GTM projects (GRP, ESP...) Infrastructure reconstruction Geological explorations in the area of inner Serbia CAPEX per investment projects (in billions of RSD) 34,8 0,06 2,71 9,44 19,57 145% 178% 40% -29% 2,41 3,25 CAPEX growth in 2012 by 48% compared to ,43 6,65 26,24 13,86 while the most important projects related to ecology, implemented in RP : Construction of the Sulphuric Acid Recovery Unit Reconstruction and modernization of RNP wharf at the river Danube Reconstruction and modernization of the Tank Car Filling Station Reconstruction and modernization of LPG fuel transfusion station FCC reconstruction reduction of emission of solid particles into atmosphere x6 48% 35% 50,83 Ecology MHC/DHT Angola PSA* Projects with direct economic effect Projects without direct economic effects Project-researching activities

23 The most significant investments in explorations and production, refining and sales and distribution in 2012 Exploration and Production 10,1 bln. RSD Oil and gas production increase Increase of reserves Refining Reconstruction and modernizatio of RNP Environmental projects Sales and distribution Geological explorations in the area of Vojvodina Geological explorations in the area of BiH Investments in concession rights Well fracturing Drilling new development wells Production automation Installation of electrical submersible pumps 20,4 bln. RSD Construction of MHC/DHT plant and hydrogen plant Construction of SARU plant Reconstruction of the wharf in Pančevo Reconstruction of tank car filling station in Pančevo Reconstruction of LPG transfusion station in Pančevo Панчеву 13,2 bln. RSD Retail Network Development Total reconstruction 9 petrol stations LPG installation 11 units Пurchase of of new petrol stations 1 petrol stations PS Rebranding petrol stations (56 under САРЕХ program and 175 under ОРЕХ program) Regional development of sales and distribution in Bulgaria and Bosnia and Herzegovina and Romania (acquisition of storage facilities in Bulgaria, signed agreement on purchaes of OMV retail network in Bosnia and Herzegovina, as well as purchase of other objects in region) 23

24 Comparative analysis (benchmarking) of basic indicators with competitors The dynamics is monitored based on average daily sales from 3,2 to 4,43 t EBITDA margin (%) EBITDA/FTE (in thousands USD) Daily sales rate (in ton/day) , , ,76 28, ,81 6,84 19,8 72 6,13 Ratio of other products (in %) OPEX ($/boe) 63 3,83 0,9 66 6, , , ,33 24 Sources: Companies reports for 2012 * NIS data for 12M 2012 ** Other companies data for 9М 2012 *** without leasing employees 73 9,85

25 Basic focus in 2013 is the investement activity and business efficiency increase 2012 was the year of strategic investments and establishment of foundations for further progress in Production increase of production and reserves volume, active development of foreign projects. Refining continuation of reconstruction of Pančevo Oil Refinery, increase of capacity utilization, initiation of project for constructing the centre for base oils production in Novi Sad Refinery Oilfield Services continuation of equipment modernization, appearance in the regional market Petrohemija - continuation of HIPP modernization in cooperation with the Serbian government, improvement of economic standing of the company Sales and Distribution - continuation of the campaign for PS NIS Petrol rebranding and reconstruction, establishment of PS GAZPROM network in Serbia and abroad Energy continuation of implementation of projects in traditional and alternative energy area (wind park Plandište, ТЕТО Novi Sad and Pančevo, small cogeneration unit, oil shale) 25

26 Regional Development of Exploration and Production Hungary NIS and the Canadian Company "Falcon" - a joint project of HC exploration in the Southern Hungary: GEW for the period from 2013 to 2015: drilling of exploratory wells; NIS and the Austrian Company "RAG" - a joint project of HC explorations in the Southern Hungary: GEW for the period from 2013 to 2015: drilling of exploratory wells; Bosnia and Herzegovina "Jadran-Naftagaz joint venture (NIS and "Neftegazinkor" j.s.c.): GEW for the period from 2013 to 2015: reprocessing; 2D seismics (det. + region); 3D seismics; drilling of exploratory wells Hungary Bosnia and Herzegovina Serbia Romania Romania NIS and the Canadian Company "East West Petroleum" - a joint project of HC exploration in the Western Romania: GEW for the period from 2013 to 2015: 2D seismics; 3D seismics; Drilling of exploratory wells. NIS and the "Moesia Oil and Gas" Company - a joint project of HC exploration in the Western Romania: GEW for the period from 2013 to 2015: reprocessing; 2D seismics; 3D seismics; drilling of exploratory wells Exploration and Production (with FS) Alternative resources Development of business with alternative resources Projects in the phase of implementation 26 A project of exploration of oil shales in Serbia in cooperation with partners. Exploration and Production of alternative gas resources in Serbia, Hungary and Romania.

27 Phases of modernization of oil refining capacities First phase meeting the requirements of modern standards for Euro 5 product quality an improvement of motor fuel quality a higher conversion of high-yield products advanced indicators of the bottom of the barrel and production of "white" petroleum products. Second phase development of the production chain for a wider range of products Reconstruction of the Novi Sad Refinery, production of high-quality base oils. Additional reconstruction of the Pančevo Refinery, the process of heavy residue refining Third phase increased bottom of the barrel Reconstruction of Pančevo Refinery so that it could be included in the technological chain of the process of heavy residue refining and optimization of process flows. 27

28 Regional Development of Sales and Distribution Development of 2 brands NIS Petrol (economic) and GAZPROM (premium) at Balkan market will ensure that these brands are more accessible to targeted market segment Sales increase at Serbian market stimulative ompact of continued implementation of retail network modernization and increase of market policy efficiency Active increase of sales volume in neighbouring markets Bulgaria, Romania, Bosnia and Herzegovina By the end of 2013, there should be at least 100 active petrol stations at these markets. RS Market 1st priority of regional development Bosnia and Herzegovina Romania Bulgaria 28

29 Directions of Development of Oil Field Services in the Period from 2013 to 2015 Bosnia and Herzegovina (the Republic of Srpska): It is planned to engage Well Services Hungary: Exploratory drilling is planned to be conducted by way of NATIONAL-3 unit, as well as rendering of services by Well Services Croatia Hungary Bosnia and Herzegovina Montenegro Macedonia Albania Romania Romania: It is planned to engage Well Services Turkmenistan It is planned to engage drilling unit NATIONAL-1 Egypt It is planned to engage Driiling Unit in Egypt (drilling rig NATIONAL-2.) 29

30 Energy Projects Gas monetization projects and meeting NIS internal demands, as well as development of green energy projects Small Co-generation Units on NIS Oil & Gas Fields CHPP Novi Sad Reconsutrction CHPP Pancevo Construction Wind Park in Serbia 30

31 NIS a.d. Novi Sad Investor Relations Sector Narodnog fronta Novi Sad, Serbia 31