Investor Presentation, October 2013
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Company Presentation October 2013 0.128.128 153.204.0 DISCLAIMER 128.128.128 208. 208.208 The information contained herein pertaining to SIBUR (the "Company") has been provided by the Company solely for use at this presentation. By attending this presentation, or by reading these presentation slides, you agree to be bound by the limitations set out below. This presentation does not constitute or form part of, 245.138.31 and should not be construed as, an offer, solicitation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of, or be relied on in connection with, any contract or investment decision relating thereto. 255.192.0 No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or 192.0.0 reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. The Company accepts no responsibility for any losses howsoever arising, directly or indirectly, from this presentation or its contents. The material contained in this presentation is presented solely for information purposes and is not to be construed as providing investment advice. As such, it has no regard to the specific investment objectives, 178.210.216 financial situation or particular needs of any recipient. There may be material variances between estimated data set forth in this presentation and actual results, and between the data set forth in this presentation and corresponding data previously published by or on behalf of the Company. 242. 242. 242 This presentation contains forward-looking statements, including (without limitation) statements containing the words "anticipates," "expects," "intends," "may," 229.242.242 "plans," “forecasts,” "projects," "will," "would", "targets,“ “believes” and similar words. These statements are based on the current expectations and projections of the Company about future events and are subject to change without notice. All statements, other than statements of historical fact, contained herein are forward-looking statements. Forward-looking statements are subject to inherent risks and uncertainties, such that future events and actual results may differ materially from those set forth in, contemplated by or underlying such forward-looking statements. The Company may not actually achieve or realize its plans, intentions or expectations. There can be no assurance that the Company's actual results will not differ materially from the expectations set forth in such forward-looking statements. Factors that could cause actual results to differ from such expectations include, but are not limited to, the state of the global economy, the ability of the petrochemical sector to maintain levels of growth and development, risks related to petrochemical prices and regional political and security concerns. The above is not an exhaustive list of the factors that could cause actual results to differ materially from the expectations set forth in such forward-looking statements. The Company and its Affiliates are under no obligation to update the information, opinions or forward-looking statements in this presentation. 2 0.128.128 153.204.0 AGENDA 128.128.128 208. 208.208 245.138.31 1. Business Overview 255.192.0 2. Investment Highlights 192.0.0 178.210.216 3. Strategy 242. 242. 242 4. Q2&H1 2013 Operational and Financial Results 229.242.242 5. Appendices 3 0.128.128 153.204.0 SIBUR AT A GLANCE 128.128.128 Financial Performance(1) Unique integrated gas Key Facts 208. 208.208 processing & petrochemicals Revenue,(2) 27(3) production sites in Russia company . 245.138.31 USD bln (2) 8.7 EBITDA, 8.5 . Over 28,000 employees 255.192.0 USD bln Leader in both gas processing 6.2 and petrochemicals industries in 192.0.0 . Russia‟s largest APG processor with a 4.0 Russia 56%(4) share of total processed volumes 178.210.216 2.9 2.6 1.9 0.8 . Russia‟s largest LPG producer with a 242. 242. 242 Diverse range of products 2009 2010 2011 2012 32%(5) share of total country‟s production (2) sold to multiple geographies EBITDA 229.242.242 20% 31% 35% 30% and customers margin, % . Russia‟s largest MTBE producer with a Net debt/ 1.6x 0.7x 0.8x 1.0x (5) EBITDA 36% share of total country‟s production Prudent and disciplined SIBUR Revenue Breakdown (2012) financial policy, sustained in the . Share of Russia‟s synthetic rubbers market downturn By Product By Region production: BR – 33%, SBR – 61%, SBS – 100%(5) Energy Other Other CIS products One of the highest rated private 6 Asia 6 1 Russia companies in the region . 37%(5),(6) of polypropylene and 41%(5) of 9 Russia‟s total LDPE production 47 % 48 % 55 29 Shareholders with established . Currently rated Ba1 (Moody‟s) / BB+ (Fitch) track record in international Petchem with no history of downgrades throughout Europe capital markets 2008/09 crisis Notes: (1) All financial figures for SIBUR in this presentation for the years of 2009-2012 are based on combined financial information, which excludes the results of the mineral fertilisers and tyres businesses, which were divested by SIBUR in December 2011, for all reporting periods. (2) SIBUR’s reporting currency is Russian rouble. Figures have been translated from RR to USD at average FX rates for the respective periods. (3) Including three gas processing plants (GPPs) operated by OOO Yugragazpererabotka, our JV with RN Holding (formerly TNK-BP Holding), which we do not consolidate from the second quarter of 2013. (4) Central Dispatch Department of the Fuel & Energy Complex, for FY 2012. (5) Petromarket, Kortes, Market Report, Alliance Analytics, Russian Association of Synthetic Rubbers Producers, company data, for FY 2012. 4 (6) Including 100% of NPP Neftekhimia production. 0.128.128 153.204.0 SIBUR OPERATES A UNIQUE VALUE CHAIN 128.128.128 Integrated Value Chain from Feedstock Sourcing to the Production of Petrochemicals 208. 208.208 FEEDSTOCK AND ENERGY PETROCHEMICALS 245.138.31 Basic 255.192.0 Oil-based polymers feedstock 192.0.0 (APG) Gas processing / Synthetic 178.210.216 Intermediates Fractionation rubbers 242. 242. 242 Gas-based feedstock Plastics & organic 229.242.242 (NGLs) synthesis products . Oil-based feedstock (APG) . Processing of APG into . Production and sale of four . By-product of oil production natural gas and NGLs categories of petrochemical . Sourced from oil companies . Transportation of NGLs products . Intermediates . Transported via pipelines . Fractionation of NGLs into . Basic polymers . Gas-based feedstock (NGLs) marketable energy products . Synthetic rubbers . Sourced from gas and oil . Sale of energy products to companies external customers and . Plastics and organic synthesis products . Transported via pipelines SIBUR‟s petrochemicals and rail segment 5 0.128.128 153.204.0 EXTENSIVE ASSET BASE THROUGHOUT RUSSIA 128.128.128 208. 208.208 245.138.31 Ust-Luga Transshipment Facility(1) NPP Neftekhimia Yuzhno-Priobskiy GPP(2) SIBUR-Geosint BIAXPLEN 255.192.0 (Nizhniy Novgorod region) Nyagan GPP(4) Western Siberia 192.0.0 SIBUR-Khimprom 48 Uralorgsintez Gubkinskiy GPP 22 bln bbl tcm 178.210.216 SIBUR-PETF Vyngapurovskiy GPP BIAXPLEN 242. 242. 242 (Moscow region) SIBUR- Headquarters Kstovo (Moscow) 229.242.242 Muravlenkovskiy GPP Plastic-Geosintetika Plastic Belozerniy GPP(4) Proven oil Proven BIAXPLEN Nizhnevartovskiy GPP(4) reserves gas reserves (Kursk) Yuzhno-Balykskiy GPP Voronezhsintezkauchuk Largest oil & gas Tobolsk Polymer Plant(1) reserves region RusVinyl(3) Polief in Russia Tobolsk-Neftekhim Source: IEA Togliattikauchuk SIBUR-Neftekhim(5) BIAXPLEN (Tomsk) BIAXPLEN Tomskneftekhim Orton Krasnoyarskiy ZSK (Samara region) Production sites with joint operations of Feedstock Feedstock & Energy segment & Energy and Petrochemicals segments Petrochemicals segment SIBUR‟s JVs Notes: (1) Investment project. (2) Investment project, JV with Gazprom Neft Group. (3) Investment project, JV with SolVin Holding Nederland B.V. (4) Part of OOO Yugragazpererabotka, JV with TNK-BP. On 30 July 2013, TNK- BP was renamed to RN Holding following the acquisition by Rosneft. (5) Including three production sites. 6 0.128.128 153.204.0 AGENDA 128.128.128 208. 208.208 245.138.31 1. Business Overview 255.192.0 2. Investment Highlights 192.0.0 178.210.216 3. Strategy 242. 242. 242 4. Q2&H1 2013 Operational and Financial Results 229.242.242 5. Appendices 7 0.128.128 153.204.0 INVESTMENT HIGHLIGHTS 128.128.128 208. 208.208 245.138.31 Advantageous access to feedstock and high barriers to entry 255.192.0 192.0.0 Vertically integrated business model supporting earnings sustainability 178.210.216 242. 242. 242 229.242.242 Leading market position in the attractive Russian petrochemicals market Highly diversified product portfolio Unique growth opportunities Strong management team and supportive shareholders 8 Advantageous access to feedstock and high barriers to entry 0.128.128 153.204.0 UNIQUE LARGE-SCALE GAS PROCESSING INFRASTRUCTURE 128.128.128 IN WESTERN SIBERIA Gas condensate pipeline 208. 208.208 Urengoy - Surgut (Gazprom) Purovskiy SIBUR owns and operates the largest and most 245.138.31 GCP extensive infrastructure for processing and Gubkinskiy PUROVSK transportation of feedstock in Western Siberia: GPP 255.192.0 Vyngayakhinskaya Muravlenkovskiy CS (1) 192.0.0 GPP . 7 out of 9 gas processing plants (GPP) Urengoy – Center I, II gas pipeline (Gazprom) . APG processing capacity of 23 bln cubic 178.210.216 (2) Kholmogorskaya metres p.a. Nyagan CS 242. 242. 242 GPP NOYABRSK Vyngapurovskiy . Raw NGL processing capacity of CGTU GPP Bakhilovskaya Tyumen 3.8 mln tonnes p.a. at flagship gas CS-3 CS Transportation infrastructure Gas condensate Yuzhny CTF pipeline Urengoi - 229.242.242 CS fractionation unit (GFU) in Tobolsk (out of 5.2 Definitions Surgut (Gazprom) Purovskiy GCP Surgutskiy GPP mln tonnes p.a.