Oil Refineries Ltd. Fourth Quarter and Full Year 21 Results March 22 1
Disclaimer This presentation has been prepared by Oil Refineries Ltd. (the "Company") as a general presentation of the Company and its financial results. The information included in the presentation and any other information communicated by the Company while the presentation is being given (all such information as aforesaid or any part thereof - the "Information") is presented for convenience purposes only. The Information does not constitute a basis for investment decision, or replace the need for carrying out independent collection of information and analysis of the Information nor does the Information purport to make or give any recommendation and/or opinion and/or to substitute for the independent judgment of any potential investor. The Company does not warrant the completeness or accuracy of the Information and it disclaims any responsibility for any damages and/or losses whatsoever resulting from the use of the Information. In case of contradiction or inconsistency between the Information and information recorded in the Company's ledgers and/or appearing in official publications, such recorded information will prevail. The Information may contain various forward-looking statements based on current data and expectations. Actual operations, results and other data may differ materially from those stated in such forward-looking statements, owing to various uncertainties and risks, including the risk factors referred to and discussed in the Company's financial statements and Management Discussion and Analysis as published by the Company. The Company assumes no obligation to update the said data and expectations or any other part of the Information. 2
Agenda Current Status and Implementation of the Strategic Plan Operating Environment Overview Fourth Quarter and Full Year 21 Results 3
Strategic Plan Conversion of HVGO HDS to Mild Hydrocracker Completed in June 20 Increased Gasoil refining capacity of 3-4% Completed Crude Unit 4 Shutdown and Upgrade Increased refining capacity to 197kbpd Increased refining flexibility for larger variety of crudes Synergies from merging ORL with Carmel Olefins Leveraged synergies for polymer production: a $45m investment expected to yield $30m/yr. Project finished and activated in Q1 12 Expanding Propylene production: a $90m investment expected to yield $55m/yr. Hydrocracker Investment Investment as of December 31, 21 at $326 million Activation planned mid-22 Transition to Natural Gas The Company has completed the transition to use of natural gas Two agreements were signed for the supply of natural gas over next few years. 4
Current Status Natural gas shortage Hydrocracker progress Diversification of funding sources Completion of organizational restructuring Creating efficient teams with support of BCG 5
Operating Environment Crude Oil Prices (USD/BBL) 130 120 110 100 90 80 70 60 12/09 12/10 12/11 Continue to operate in highly volatile market In 21, crude oil prices rose 15% to 107 USD/bbl, following 20 in which prices rose by 19% Oil futures retreated from the second of 21 and onwards 6
Operating Environment Mediterranean Ural Cracking Margin (USD/BBL) 8 6 20 Average: 2.9 USD/BBL 21 Average: 1.2 USD/BBL 4 2 0-2 -4 7
Operating Environment Mediterranean Product Margins (USD/BBL) 30 CIF Product Prices as compared with Brent Crude Oil Prices 25 20 15 10 5 0-5 -10-15 -20 20 21 22 Gasoline Diesel Fuel Oil 8
Operating Environment Assessment of National Transportation Fuel Demand (Thousand Tons) 0% 21: 6,131 20: 6,141 Delta: 0% -1% +1% Source : National Infrastructure Ministry 9
1,200 1,100 1,000 900 800 700 600 500 400 Operating Environment Petrochemical Products ($/Ton) 20 04 20 Polypropylene 07 20 10 20 Polyethylene 21 Polymer Prices Above Naphtha 04 21 07 21 10 21 22 1,000 800 Xylene Paraxylene Aromatics Prices above Gasoline 600 400 200 0 20 04 20 07 20 10 20 21 04 21 07 21 10 21 22 10
Annual & Q4 21 Results Refining & Production (Thousand tons) 1,847 800 154 139 47 80 9 20 Refining Aromatics (Gadiv) Polymers (CAOL) Lube Oils Q4 '10 Q4 '11 7,603 8,226 431 588 648 695 60 72 Refining Aromatics (Gadiv) Polymers (CAOL) Lube Oils 20 21 11
Annual & Q4 21 Results ORL Refining Margin vs. Regional Benchmark (USD/bbl) 5.3 6.1 5.5 5.7 4.9 2.9 3.1 2.7 2.8 3.6 2.6 1.9 1.2 1.4 2007 2008 2009 20 21 Q4 20 Q4 21 Ural Crack Med ORL (Adjusted) Note: Adjusted margin is ORL s refining margin calculated for comparison purposes and excludes impact of inventory w\o and gains as well as IFRS 12
Annual & Q4 21 Results Key Figures (millions) EBITDA Q4 11 Q4 10 21 20 Refining & Trade (7) (13) (18) 29 Polymers (CAOL) (23) 18 52 109 Aromatics (Gadiv) 7 3 47 27 Lube-Oils (HBO) (1) - 10 8 Consolidation 1 1 1 (3) Consolidated EBITDA (23) 9 92 170 Net Consolidated Profit (78) 24 (87) 73 Note: In the refining and trade sector, EBITDA and margin are presented net of inventory and IFRS impact 13
Annual & Q4 21 Results Change in Adjusted Consolidated EBITDA (m. US$) 9 6 0 0 4 3 11 (23) (45) 66 69 69 47 47 51 41 41 (22) 19 19 Adj. EBITDA Q4 '10 Decrease in Ref. Margin Decrease in Pet. Margin Increase in Quantities Increase in Trade Increase in Other Income Increase Operating Expenses Adj. EBITDA Q4 '11 Inventory & IFRS Impact EBITDA Q4 '11 14
Annual & Q4 21 Results Consolidated Net Debt Bridge (m. US$ as of December 31, 21 ) 112 1,049 845 2,439 2,327.00 2,327 1390 545 545 0 Current Loans Debentures Loans Total Debt Traded Securities Net Debt Note: Loans & debentures include current maturities 15
Annual & Q4 21 Results Balance Sheet Consolidated, December 31, 21 (m. US$) Current Assets 31.12.10 31.12.11 Cash & securities 241 116 Other current assets 494 758 Inventory 1,2 1,080 1,935 1,954 Non Current Assets Other NC assets 408 305 Property, plant & eqpmt. 2,030 2,245 2,438 2,551 Current Liabilities 31.12.10 31.12.11 Current Fin. liabilities 774 844 Other current liabilities 840 928 1,614 1,772 Non Current Liabilities NC fin. liabilities 1,497 1,581 Other NC fin. liabilities 139 135 1,636 1,716 Capital Shareholder s Capital 1,124 1,8 4,374 4,505 4,374 4,505 16
Thank You 17