Performance Review www.oandoplc.com 1 Disclai laime mer This - PowerPoint PPT Presentation

Oando PLC FYE 2012 & Q1 2013 Performance Review www.oandoplc.com 1

Disclai laime mer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Oando Plc (the “ Compan any ”) shares or other securities. This presentation includes certain forward looking statements with respect to certain development projects, potential collaborative partnerships, results of operations and certain plans and objectives of the Company including, in particular and without limitation, the statements regarding potential sales revenues from projects, both current and under development, possible launch dates for new projects, and any revenue and profit guidance. By their very nature forward looking statements involve risk and uncertainty that could cause actual results and developments to differ materially from those expressed or implied. The significant risks related to the Company’s business which could cause the Company’s actual results and developments to differ materially from those forward looking statements are discussed in the Company’s annual report and other filings. All forward looking statements in this presentation are based on information known to the Company on the date hereof. The Company will not publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. 2

Contents nts I Asset Overview II II Operational Highlights III III FYE 2012 Performance Review IV IV Q1 2013 Performance Review V Strategic Overview VI VI Q & A 3

Asset Overview 4

Asset t Overv rview iew Desc script iptio ion Asse sets ts • Producing assets: OML 125 & OML 56. • OER listed on the TSX • Development & appraisal: OML 134, OML 90, OML 13 • 94.6% ownership of OER Explor orati tion & & OPL 236. ision m Divisio Productio ion • Exploration: OPL 278, OPL 282, OPL 321, OPL 323, OML122, JDZ, Block 26 & Rubai Licenses ream • Largest swamp drilling • 4 swamp rigs: • Drill bits and engineering Upstre fleet in Nigeria servicing • 3 in contract services Energ rgy IOCs • Total fluids management. • 1 in refurbishment #1 #1 Servic rvices • First private sector company to • Gas Pipeline franchise: • Akute & Alausa captive tream ision enter gas distribution in Nigeria Power Plants GNL: 100km Lagos Divisio • 3 gas pipeline franchises #1 #1 Gas s & Power • Compressed Natural Gas Midstr EHGC: 128km East • 1 IPP Facility CHGC: 5km East • Central Processing Facility • Largest indigenous supply • Trading desks and operations in Nigeria and and trading player in the sub- Bermuda. vision Supply ly & Saharan region. m Divisio #1 #1 • 15% market share in PMS Tradin ding • Trading consultants in the UK and Singapore. importation. stream • 500+ retail outlets in Downstr • 28% market share in Nigeria • 2 lube blending plants Nigeria, Ghana and Togo • Large distribution footprint (55m litres / annum) #1 #1 Marke rketi ting • 8 terminals (159.5ML) Marketing with access to over 1,500 • 7 LPG filling plants trucks and 150m litres storage • 3 Aviation fuel depots capacity. 5

Operational Highlights 6

Ope perat ation ional al Upd pdate Upstre ream m Divisio ision Midstr stream Divisio ision Downstr stream m Divisio vision Explor orati tion & Energ rgy Gas s & Supply ly & Marketi rketing Marketing Productio ion Servic rvices Powe wer Tradin ding  OER paid $435MM  Teamwork achieved 3  Gas Network Services  Largest importer of  OMP is overall market leader deposit to COP towards years of operations Ltd (CNG): Mobilization of PMS in 2012. YTD, with an aggregate business acquisition. without Loss Time Injury Installation team to site is market share of 28% (LTI). ongoing. Work  OMP’s performance is  Increased crude trades progressed on other civil  Average Production of driven by dominance in from African countries. structures on site. PMS, HHK, LPG & LPFO  Average Operating 4.5kbopd from 2 assets  Repositioning and upgrade efficiency of 3 rigs is Operational Update  Focusing on other  GL4: EIA Panel Review 93% of storage and distribution  Production on Ebendo markets and products successfully conducted. facilities Field fully restored to build business. Provisional approval  LPG strategy still ongoing  Fourth rig (Respect) following repair of expected from Federal with delivery of 500k evacuation pipeline. expected to be delivered Ministry of Environment. cylinders. 100k cylinders into contract with IOC sold. this year.  EB-5 well completed  Akute: Received a  Commenced construction of and tested. Expected to notification from Nigerian midstream jetty, capacity to contribute 1,069bopd Investment Promotion increase import volumes. net to OER. Commission granting APL an extension of its  Launched 13 Trippmart  EB-6 spudded and Pioneer status award for stores and plans to launch drilled to a TVD of the next two years. another 12 by Dec 2013. 6,231ft  Launched 25 Autocare centres and plans to launch  Qua-Ibo well 3 being re- another 15 by the end of completed 2013. 7

FYE 2012 Performance Review 8

Profi Pr fit & Loss Highligh ights ts N ’ Million FYE 2012 12 FYE 2011 11 Vari riance nce 18% 18% Turnover 673,182 571,306 18% Gross Margin 81,622 65,827 24% Turnover of N673.2 Billion Non-interest Expenses (49,594) (60,007) (17%) 90% 90% Other Operating Income 2,098 13,516 (84%) EBITDA 41,394 21,785 90% EBITDA of N41.4 Billion Interest Expenses (16,572) (5,450) 204% Depreciation and Amortization (7,268) (2,450) 197% 310% 0% Profit before Tax (PBT) 17,554 13,885 26% Profit after Tax (PAT)/Net Profit 10,786 2,632 310% Profit after Tax of N10.8 Billion Net Profit Margin 1.6% 0.5% - 9

Group p Balanc nce Sheet t Highligh ights ts N ’ Million FYE 2012 12 FYE 2011 11 Vari riance nce 19% 19% Fixed Assets 130,325 109,479 19% Non-current receivables Fixed Assets of N130.3 Bn 10,619 1,474 620% Stock 8% 18,111 32,458 (44%) Trade and other Debtors 113,935 105,196 8% Bank and cash balances 13,409 18,691 (28%) Trade Debtors of N113.9 Bn Trade and other Creditors 86,046 75,209 14% -13% 3% Short Term Borrowings 213,666 119,993 78% Long Term Borrowings 75,221 86,012 (13%) LT Borrowing of N75.2 Bn EBITDA of Equity & Reserves 105,355 92,765 14% 10 10

Group p Debt bt Breakdown kdown Total Debt N289Billion Sources Uses OST GRP N50Bn Short OGP N123Bn Term GRP N21Bn N214Bn OMP N8Bn N51Bn OES Long E & P E & P N75Bn Term N25Bn N135Bn OST N75Bn N56Bn OES OGP N11Bn N23Bn Explor orati tion & Energ rgy Gas s & Supply ly & Marke rketi ting Marketing Productio ion Servic rvices Powe wer Tradin ding Use of Funds Asset Acquisition Rig Acquisition EHGC Pipeline Import Finance facilities and CPs for white Signature Bonuses Rig refurbishment CNG project product importation Farm-in Fees Drill Bits Gaslink customer connects Asset Development As at 31 December, 2012 11 11

Divisio siona nal Pe Perfo forman ance e An Analysis sis Supply ly & Gas s & Energ ergy Explo lora ratio tion N ’ Million Marke rketing ting Trad adin ing Power wer Servic rvices es & Product ctio ion Turnover 245,555 590,183 53,304 20,450 20,888 Gross Margin 24,861 8,903 20,118 10,937 16,627 EBITDA 10,002 1,963 15,072 4,301 13,309 Profit before Tax (PBT) 6,947 1,593 10,863 (590) 5,707 Profit after Tax (PAT) 5,406 559 11,847 198 70 Net Profit Margin 2.2% 0.1% 22.2% 1.0% 0.3% 259% PAT Analysis Gross Profit FYE 2011 38% FYE 2012 -73% -90% 200% OMPLC OST OGP OES E & P Total Group figures do not equal sum of individual entities due to intercompany adjustments (sales, interest, etc ) and corporate center activities. 12 12

Divisio siona nal Pe Perfo forman ance e An Analysis sis Gross Margin – N81.6 Billion OES E & P Turnover – N673.2 Billion OGP 2% 2% 6% E & P OMP OMP 20% 26% 31% OES 13% OST 11% OST OGP 63% 25% OES, 1% EBITDA – N41.4 Billion OMP PAT – N10.8 Billion OMP , E & P 22% 30% 30% OST 4% OST, OGP 3% OES 66% 10% OGP 34% Total Group figures do not equal sum of individual entities due to intercompany adjustments (sales, interest, etc ) and corporate center activities. 13 13

Sector or Pe Perfo forman ance ce - Ups pstrea eam Explora loration tion & Energy ergy Produc duction tion Serv rvices ices N ’ Million FYE 2012 FYE 2011 Varia iance N ’ Million FYE 2012 FYE 2011 Varia iance 20,450 Turnover 20,888 26,127 (20%) Turnover 14,383 42% 16,627 10,937 Gross Margin 19,447 (15%) Gross Margin 9,246 18% 13,309 4,301 EBITDA 11,932 12% EBITDA 4,435 (3%) 21.0% EBITDA Margin 63.7% 44.4% - EBITDA Margin 30.8% - 5,707 Profit before tax (PBT) 8,366 (32%) (590) Profit before tax (PBT) (398) (48%) 70 198 Profit after tax (PAT) 723 (90%) Profit after tax (PAT) 66 200% 0.3% 1.0% Net Profit Margin 2.8% - Net Profit Margin 0.5% - 14 14