History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Rompetrol Rafinare Launch on Bucharest Stock Exchange Philip Stephenson Deputy CEO NV Bucharest, March 24 th, 2004
Overview History History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debt Past Stock Market Performance
History History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts 1974 - Established as the international operator of the Romanian oil industry 1993 - Privatized by Management and Employee Buy Out ( MEBO ) and turnover subsequently reduced to below $6 million by 1998 1998 - Control purchased by Dinu Patriciu and local investor group 1999 Holding company established as ( TRG ) in the Netherlands 1999 The first major acquisition; the Vega refinery, located in Ploiesti,is bought and doubles its revenues in the first nine months after takeover. 2000 - Private equity investment by US-managed Romania & Moldova Direct Fund, L.P. / 2
History 2000 Rompetrol takes over Petros at that time Romania s principal oilfield operator. The company has since been renamed Rompetrol Well Services. History 2001 The Group s largest acquisition, S.A., Romania s largest and most sophisticated oil refinery. Rompetrol committed itself to a sustained modernization process to make a state-of-the-art facility in Eastern and Central Europe 2001 Rompetrol creates Rominserv, Romania s first Engineering Procurement Construction & Maintenance (EPCM) company focusing on the oil industry. Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts 2002 OMV of Austria buys 25.1% of TRG NV; RMDF exits; OMV Chairman Dr. Wolfgang Ruttenstorfer joins TRG Board. 2002-2003 Rompetrol opens subsidiaries in neighboring Republic of Moldova (Rompetrol Moldova) and Bulgaria (Rompetrol Bulgaria)
obal History CANADA THE NETHERLANDS USA ROMANIA GREENLAND EUROPE MOLDOVA RUSSIA AZERBAIDJAN KAZAKHSTAN Corporate background BULGARIA AFRICA MIDDLE EAST ASIA TURKMENISTAN Crude Supply Production SOUTH AMERICA IRAQ Operating Costs LIBYA AUSTRALIA Sales and Distribution Summary Financials Historic Debts ANTARCTICA
Romanian Retail operations History Oil & Gas Company Exploration & Production Refining & Petrochemicals Corporate background Wholesale Crude Supply Retail (Romania wide) Production Operating Costs Sales and Distribution Services Summary Financials & Supply Companies Historic Debts Oilfield & Drilling Joint Services (logistics, environmental remediation, EPC maintenance) Pipes & Fittings Plant Oilfield & Drilling Vega Refinery Rompetrol Group headquarters Refinery & Petrochemical Plant
Retail Network History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts STATII ROMPETROL PETROMIDIA DEPOZITE VEGA
History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts
History Corporate background Crude Supply Production Corporate background Operating Costs Sales and Distribution Summary Financials Historic Debts
Company shareholders History Shareholder No. of shares Percentage THE ROMPETROL GROUP NV 11.251.440.978 64,4283% Corporate background Crude Supply S.C. ROMPETROL S.A. 3.285.266.796 18,8122% Production Operating Costs Sales and Distribution Summary Financials Historic Debts SIF TRANSILVANIA 1.683.335.556 9,6392% Minority shareholders (below 10%) 1.243.464.337 7,1203% TOTAL 17.463.507.667
Company shareholding History Rompetrol Holding S.A. (Switzerland) OMV Aktiengesellschaft (Austria) 74.9% 25.1% Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Rompetrol Industrial Parks SA 23% Rompetrol Logistics SA (Romania) N.V. (The Netherlands) 64.43% 81.82 Rompetrol % Rafinare S.A. (Romania) (Romania) 67.83 100% 99% % 23% Rompetrol Petrochemicals SRL (Romania) 18.81% Rom Oil SA (Romania) Rompetrol S.A. (Romania)
Refinery Layout Refinery layout METHANE History HYDROGEN PLANTS 3x1700 NAPHTHA HYDROTREATER 833 000 PLATFORMER 500 000 AMINE TREATERS AND CLAUS UNITS 32 000 PROPANE n-butane OILFIELD CONDENSATE Corporate background Crude Supply HYDROGEN NETWORK JET FUEL HYDROTREATER 340 000 DIESEL HYDROTREATER 720 000 AROMATIC EXTRACTION 430 000 BTX SEPARATION 240 000 REFINERY FUEL GAS LIGHT ENDS SEPARATION 200 000 JET FUEL TOLUENE RAFFINATE BENZENE CRUDE Production Operating Costs Sales and Distribution Summary Financials Historic Debts CRUDE UNIT 4 800 000 FCC FEED HYDROTREATER 1 200 000 DELAYED COKER 1 170 000 o-xylene & ETHYLBENZENE SEPARATION 90 000 p-xylene SEPARATION 310 000 FCC 1 100 000 MTBE 35 000 PROPYLENE UNLEADED GASOLINE ETHYLBENZENE o-xylene SULPHUR C4 CUT LPG p-xylene REFINERY Plant All capacities are in mt/y m-xylene IZOMERIZATION 270 000 TEL ADDITION 350 000 FUEL OIL LEADED GASOLINE DIESEL COKE * All marked installations have been upgraded or otherwise modernized following investments
Licensors History CCR UOP FCC UOP Corporate background Crude Supply Production Operating Costs Merox UOP PAREX UOP Sales and Distribution Summary Financials Historic Debts HDPE Mitsui PP Rompetrol (initial technology Mitsui) LDPE - Snamprogetti
Logistical infrastructure History Rompetrol Refining (RR SA) general logistical framework includes: Pipelines Maritime berths for loading unloading Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials The pipeline system Railway loading-unloading facilities Automotive loading-unloading facilities Historic Debts The oil pipeline connecting Oil Terminal Constanta to RR S.A., supplies the refinery with Crude Oil The gasoline pipeline connecting RR S.A. to Oil Terminal Constanta, delivers gasoline to Oil Terminal facilities. The diesel pipeline connecting RR S.A. to Oil Terminal Constanta, supplies diesel to Oil Terminal facilities.
Logistical infrastructure History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Railway facilities Automated rail post - used to load all finished and semi processed liquid products. Activities unfold via 4 rail tracts, two destined for white products (gasoline, aromatics, Jet A fuel) and 2 for black products (gasoil, diesel, heating fuels). GPL post used to load liquefied petroleum gas, the facility has 12 loading sites distributed along two rail tracts. Interim post used to unload gasoil and vacuum distillate containers, it is endowed with 20 unloading sites distributed along two rail tracts. Crude unloading post - a new location used to unload crude and furbished with 30 unloading sites. Naphtha-MTBE gasoline unloading post used to unload the raw material for the HB and MTBE installations, the post has 20 unloading sites along 2 rail tracts. Solids loading post - used to load petroleum coke and sulfur with sites along two rail tracts Non-standard product unloading post used to unload containers which do not comply to production standards in point of quality
Logistical infrastructure History Maritime loading unloading berths Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Berth 1-4 used to unload crude from vessels of up to 25000 dwt. Berth 9 used to load various processed products (gasoline, diesel, Jet A fuel) and unload various finished and semi processed materials (MTBE, gasoil, vacuum distillate) from ships of up to 5000 tdwt.
History Corporate background Crude Supply Production Considerations on crude supply Operating Costs Sales and Distribution Summary Financials Historic Debts
Urals CIF Med Prices Vs. Brent History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts
Urals Med Margins History Urals Med Cracking Margins (USD/bbl) Corporate background Crude Supply Production 9.00 8.00 7.00 6.00 5.00 2000 2001 2002 2003 2004 Operating Costs Sales and Distribution Summary Financials Historic Debts 4.00 3.00 2.00 1.00 0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Types of crude used (evolution in percentages) History 100% 244,017 0 951,419 Corporate background Crude Supply Production Operating Costs Sales and Distribution tons 50% 1,839,937 2,606,312 4,011,500 Summary Financials Historic Debts 1,275,045 1,004,380 0% Low sulfur High sulfur 2001 2002 2003 2004 Low sulfur High sulfur
Crude prices (Petrom versus other sources the refinery uses) History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts
Refinery vs. Crude margins History Evolution refinery margin Urals reference Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts $/barrels of crude $5.00 $4.00 $3.00 $2.00 $1.00 $0.56 $2.34 $0.89 $1.77 $4.18 $3.67 $- 2001 2002 2003
History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Production
Automotive facilities Utilization History Totals 350 3,333,160 Corporate background Crude Supply Production Operating Costs '000 to 300 250 200 150 287.077 307.891 255.125 281.138 269.976 226.457 138.021 276.417 264.061 264.351 255.42 232.860 250.996 252.309 235.131 246.217 233.761 225.322 233.966 235.403 223.945 289.503 288.059 281.530 278.354 3,131,859 Sales and Distribution Summary Financials Historic Debts 100 50 28.668 17.101 26.753 131.729 6.292 12.356 18.134 21.659 Total feedstocks Crude oil Other feedstocks 7.538 201,301 17.03 16.906 11.186 11.149 6.529 0 Jan-03 february march april may june july august september october november december Jan-04 Nameplate capacity 4.8 million tons Planned capacity for 2003 2004 to reach 4.0 million tons
Crude processed History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts
Evolution of raw materials History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts 000 tons Total Feedstock Crude Other raw materials
Evolution of Euro standard production vs. types of crude used History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Products Euro Products Sweet Crude Sour Crude
Euro standard production History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Premium E Gasoline replaces Leaded Premium and is destined for use by Dacia owners whose cars have a carburetor engine. This type of gasoline, which does not contain any lead tetra ethylene anymore, does not result after burning in noxious fumes filled with lead and lead oxides which are damaging to human health and the environment. EURO Standard Unleaded Gasoline is low in sulfur and is meant for use by engines with incorporated catalyst for the exhaust system. EURO Plus Unleaded Gasoline is low in sulfur, and contains low quantities of olefins, benzene and other aromatics, thus being the equivalent, in point of quality, of the fuels marketed for EURO engines in Western Europe. EURO Super 98 Unleaded Gasoline is, quality-wise, the top quality fuel for Euro engines. This type of gasoline has the lowest sulfur content (a maximum of 50 parts per million) and fulfills the most demanding environment protection requirements. It is meant for use in engines demanding high-octane fuels (higher compression margins). EURO 3 Diesel is low in sulfur (a maximum of 350 parts per million) and will replace a type of diesel of maximum 500 ppm, thus decreasing polluting emissions of oxides. It is meant for all Diesel euro 3 compliant engines. Super EURO 4 Diesel has a sulfur content of below 50 ppm and is compliant to all European standards. It is meant for Diesel engines furbished with catalytic systems for reducing emissions, compliant to Euro 4 pollution standards and with a cetanic count of min. 51.
Production Costs - $/ton History Production costs $/to Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 26.22 jan 20.68 17.44 feb march 33.80 april 23.93 20.03 21.4421.30 23.25 21.81 20.23 21.12 20.40 may june july august Month/2003 sept oct nov dec jan
Product allocation sales to clients, raw materials to other group companies History Other Finished Products Feedstock for Vega Feedstock for Petrochemicals Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts 4% 2% 94%
History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Operating costs
Operating expenses History Corporate background Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials Historic Debts
c o n su m to ta l Evolution of total consumption and losses of materials from raw materials to finished products History Corporate background 11 10 9.94 Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials Historic Debts performance % 9 8 7 8.19 6 5 2001 2002 2003 5.69
Reduced MTBE volumes History Evolution % MTBE in unleaded gasoline 14 13.148 Corporate background 12 Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials % MTBE 10 8 6 8.488 7.297 6.276 Historic Debts 4 %MT BE in bz.fara pb 2 0 Note: 2001 2002 2003 Dec-03 MTBE averages $ 460/ton Saves $ 30 m per year
Staff Optimized staff/production ratio History No. Staff Rompetrol Rafinare Corporate background Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials Historic Debts 4000 3574 3000 2000 1000 0 Ian 20 01 M arch 3554 3568 3373 3372 M ay July Sept Nov 2943 2296 2240 2205 Ian 2002 March May July Sept Nov 1961 1844 1843 1836 1446 1446 1475 1467 1469 1467 Ian 2003 March M ay July Sept Nov Dec 1458 Ian 20 04
Upgrade projects - ongoing History Corporate background Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials Historic Debts Nr. crt. Project 1 Digital Control System: automated installation monitoring 2 Upgrade of the raw material transportation main routes Investment value (USD) Yearly savings (USD) 23,000,000 12,000,000 1,300,000 900,000 3 Upgrade of the water supply system 550,000 290,000 4 Maximize MTBE flow 325,000 244,000 2003 investment projects- completed 1 In-line blending system 6,800,000 2,800,000 2 Upgrade Midia Port 4,000,000 4,500,000 3 Upgrade Coking installation 2,300,000 1,500,000 Note: Short payback periods
Investment History Investment figures Corporate background 70,000,000 60,000,000 50,000,000 62,074,683 49,438,265 Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials USD 40,000,000 30,000,000 20,000,000 10,000,000 21,129,928 13,901,476 12,098,044 5,168,067 6,513,695 18,630,355 6,721,951 Technological investment Environmental investement Capital contribution Historic Debts 0 2001 2002 2003 Year
Productivity increase/ staff numbers History Productivity and performance increase 100,000 46,470 Corporate background 10,000 9,005 Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials 1,000 100 10 46 313 Gross revenues/no. of employees Gross revenues/h/employee Historic Debts 1 2001 2003 Year
History Corporate background Crude Supply Production Operating Costs Sales & and Distribution Summary Financials Historic Debts Sales and distribution
Evolution of overall sales History Corporate background Crude Supply Production Operating Costs Sales & and Distribution Summary Financials Historic Debts
Evolution of gasoline sales History Corporate background Crude Supply Production Operating Costs Sales & and Distribution Summary Financials Historic Debts
Evolution of diesel sales History Corporate background Crude Supply Production Operating Costs Sales & and Distribution Summary Financials Historic Debts
History Corporate background Crude Supply Production Operating Costs Sales & and Distribution Summary Financials Historic Debts Off-takers - international Litasco Vitol SA Rompetrol Bulgaria Glencore International AG Rompetrol Moldova Off-takers - domestic Rompetrol Downstream Romoil OMV Shell Romania Grivco
History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Summary Financials
Key Figures History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts USD Million ROL Billion 2002 2003 2002 2003 Gross Revenues 876 1,038 28,948 34,311 EBITDA (87) 10 (2,891) 324 EBIT (110) (32) (3,635) (1,063) EBT (112) 87 (3,695) 2,879 Net result (112) 87 (3,695) 2,879 Current Assets 405 448 13,574 14,597 Current Liabilities 588 250 19,693 8,156 Total Assets 841 919 28,188 29,949 Share Capital 425 536 14,230 17,464 Shareholders' Equity 245 565 8,198 18,417 Total Liabilities 597 354 19,990 11,532 Average exchange rate 33,055 33,200 Year-end exchange rate 33,500 32,595
Financial Ratios History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts USD Million ROL B 9.5% 2002 2003 15.4% 2002 Gross Revenues 876 1,038 28,948 EBITDA (87) 10 (2,891) EBIT (110) (32) (3,635) EBT (112) 87 (3,695) Net result (112) 87 (3,695) Current Assets 405 448 13,574 Current Liabilities 588 250 19,693 Total Assets 841 919 28,188 Share Capital 425 536 14,230 Shareholders' Equity 245 565 8,198
EBITDA Evolution History 100 80 80 Corporate background 60 40 Crude Supply Production Operating Costs Sales and Distribution Summary Financials Million USD 20 - (20) 2001 2002 2003 2004 (budget) 10 Historic Debts (40) (36) (60) (80) (100) (87)
Revenues Evolution History 1,600 1,400 1,481 1,200 Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Million USD 1,000 800 600 400 520 876 1,038 200-2001 2002 2003 2004 (budget)
Situation of debt payments History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Historic Debt Millions USD 450 400 350 300 250 200 150 100 50-182 7 15 221 62 62 417 190 138 1-372 Jan 2001 Dec-01 2002 2003 Debt due to state budget Penalties due Paid to the State Budget
Evolution of debt vs turnover History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Historic Debt 1.029.085.283 US$ 915.459.374 US$ 435.437.204 US$ 256.182.859 US$ 70% 51% 46% 0.01% 2000 2001 2002 2003 Turnover Debt Historic debt EGO no. 118/ 24.10.2003, Official Gazette no. 755/28.10. 2003 enables Rompetrol Rafinare SA to issue 22.812.098 nominal bonds, face value Euro 25 each, interest EURIBOR for 12 months plus 1,5% yearly, Bonds will become due (and convert to equity shares) after 7 years on September 30, 2010.
Contribution to state budget History Taxes paid to state budget Corporate background 400,000 350,000 371,600 Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Historic Debt 000'USD 300,000 250,000 200,000 150,000 100,000 50,000 0 190,400 61,900 15,300 Year 2000 Year 2001 Year 2002 Year 2003
History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Strategic objectives
History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Increase the functional capacity from 3.5 mta in 2003 to 4.0 mta in 2004 Decrease average cash conversion cost, including logistic & transportation, per ton from $22 to $18 Objectives
Future development of Rompetrol Rafinare depends on the completion of major strategic objectives: History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Objectives To improve quality and performance in order to become the leading low-cost provider of oil products in the Balkan area; To increase quantity of refined products and further increase euro standard compliance; To continue to comply with increasingly stringent environment regulations (Romanian and European); To cut the cost of raw material supply and increase product exports to foreign partners by maximizing operations in the Midia Port; To continually decrease utilities costs thus increasing production value and efficiency. These objectives will be achieved by: A 6.6 mil USD investment in an inline blending unit, the first of its kind in Romania. This installation was completed in July 2003 and has been instrumental in reducing costs and providing Euro quality products; The installation of a buoy terminal in the Midia Port vicinity to reduce loading and unloading costs; The revamp and upgrade of the Midia CET (Thermoelectric Unit) to reduce utilities costs; The implementation of the Digital Control System all throughout the refinery (DCS);
History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Stock exchange performance
Stock Market Data History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts trading symbol PTRM was traded on RASDAQ until November 11 of 2003 when the company was suspended from trading for a share capital increase and the subsequent listing to the Bucharest Stock Exchange (BVB). The stock underwent a split on January 16, 2004. Pre split face value was 214,220 ROL per share and the number of shares traded was 73.861.901 Post split, Rompetrol Rafinare stock face value was 1000 ROL/ share and the number of shares traded was 17.463.507.667 Past SE Performance SM
Stock price history History Last trading day Tuesday, November 11, 2003 Last price 75,000 Lei Stock Price History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Past SE Performance SM ROL 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Mar- 03 Apr- 03 May- 03 Jun- 03 Jul- 03 Month 2003 Aug- 03 Sep- 03 Oct- 03 Nov- 03 Max last 52 weeks Min last 52 weeks 75,147 ROL 31,000 ROL