Company Presentation June 2015
DISCLAIMER 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, 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. 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 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, 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. This presentation contains forward-looking statements, including (without limitation) statements containing the words "anticipates," "expects," "intends," "may," "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
SIBUR AT A GLANCE Financial Performance (1) SIBUR Advantage SIBUR is a unique integrated gas processing & Revenue, USD bln EBITDA, USD bln 35% petrochemicals company (2) 32% EBITDA margin, % 31% 30% 29% Vertically integrated business model supporting 1 9.4 resilient business performance 8.7 8.5 8.5 20% Advantageous access to feedstock and high barriers 2 6.2 to entry 4.0 Highly diversified product portfolio 3 Leading market position in the attractive Russian 2.9 4 2.6 2.7 2.5 1.9 petrochemicals market 0.8 Unique growth opportunities 5 2009 2010 2011 2012 2013 2014 Net debt/ One of the highest rated companies in the region: EBITDA 1.6x 0.7x 0.7x 1.0x 1.1x 1.2x (USD) Ba1/Moody‟s (affirmed in March 2015) and BB+/Fitch Ba2 Ba2 Ba2 Ba1 Ba1 Ba1 (affirmed in February 2015) with no history of downgrades throughout 2008/09 crisis BB BB BB BB+ BB+ BB+ Key Facts Revenue by Product (2014) Revenue by Region (2014) Other revenue Other CIS 26 production sites in Russia 1 3 Russia 6 Asia 8 Over 25,000 employees 37 49 Energy 36 % % Over 1,400 large customers from 75 countries representing products 60 Europe Petchem diverse range of end-customer industries Naphtha trading operations via Ust-Luga, ceased in 2015 Notes: SIBUR’s reporting currency is Russian rouble. Figures have been translated from RR to USD at average and end-of-period FX rates for the respective periods. (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. (2) Estimated EBITDA margin excluding naphtha trading via Ust-Luga transshipment facility. 3
SIBUR OPERATES A UNIQUE VALUE CHAIN Integrated Value Chain from Feedstock Sourcing to the Production of Petrochemicals Basic Oil-based polymers feedstock (APG) Gas processing / Synthetic Intermediates Fractionation rubbers Gas-based feedstock Plastics & organic (NGLs) synthesis products FEEDSTOCK AND ENERGY (2014) PETROCHEMICALS (2014) EXTERNAL SOURCING OF HYDROCARBON EBITDA: USD 2,299 mln EBITDA: USD 542 mln FEEDSTOCK EBITDA margin (3) : 41.8% EBITDA margin: 14.6% Oil-based feedstock (APG (1) ) Processing of APG into natural gas Production and sale of four categories of By-product of oil production and NGLs petrochemical products Sourced from oil companies Fractionation of NGLs into Dominant share of feedstock sourced Gas-based feedstock (NGLs (2) ) marketable energy products internally Sourced from gas and oil Sale of energy products to external customers and SIBUR‟s companies petrochemicals segment Notes: (1) Associated petroleum gas. (2) Natural gas liquids include raw NGL, LPG (liquefied petroleum gas), naphtha. (3) Estimated EBITDA margin excludes naphtha trading via the Ust-Luga transshipment facility. 4
EXTENSIVE ASSET BASE THROUGHOUT RUSSIA WESTERN SIBERIA Largest oil & gas ● Saint-Petersburg reserves region in WESTERN SIBERIA Russia Tver ● ● Purovsk Salekhard ● Proven oil reserves Moscow ● 48 bln bbl Tula ● Kursk ● Proven gas reserves ● ● Perm Voronezh ● Nizhniy Novgorod 22 tcm Khanty-Mansiysk ● Tobolsk ● ● Ufa Samara ● Tyumen ● ● Tomsk Krasnoyarsk ● Omsk ● Kemerovo ● Petrochemicals Energy Products Joint Ventures Logistics basic polymers raw NGL pipeline gas processing & intermediates facilities operated under JVs fractionation, synthetic rubbers transshipment facility other chemicals MTBE & other fuel plastics & organic synthesis additives 5
1. Vertically integrated business model supporting resilient business performance VERTICALLY INTEGRATED MODEL WITH MULTIPLE EMBEDDED EARNINGS SUSTAINABILITY DRIVERS (1) Natural gas 100% External sales represent c. 86% of Feedstock & Energy Earnings Sustainability Drivers NGLs segment gross revenue (4) 70% (4) MTBE Deep discount between 100% natural gas selling price and APG purchasing price hedges Oil producers economics of APG processing Oil-based feedstock Basic polymers Feedstock & (APG) Petrochemicals Economics of raw NGL (PP, PE) Energy segment fractionation limits exposure to oil & oil derivative price segment NGLs Synthetic rubbers volatility 17 (3) production sites 9 production sites 30% (4) Gas-based Net seller position of energy Gross sales: Gross sales: Plastics and feedstock products hedges against RR 142.3 bln RR 211.2 bln (4) (NGLs) organic synthesis increases in prices for EBITDA margin: EBITDA margin (2) : petrochemical feedstock Intermediates and 14.6% 41.8% other chemicals Prices for petrochemical Other third-party Methanol products are only partially Oil & Gas feedstock producers correlated with oil & oil Dominant share of feedstock derivative prices for petrochemicals segment is sourced internally - Share of available for sale volumes X% Notes: (1) All figures based on FY 2014 financials. (2) Estimated EBITDA margin excludes naphtha trading via the Ust-Luga transshipment facility. (3) As of 31 December 2014. (4) Excludes naphtha trading volumes. 6
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