COMPANY PROFILE

ONE OF THE LARGEST VERTICALLY INTEGRATED ENERGY COMPANIES IN SOUTHEAST EUROPE

Largest contributor to the budget of the Republic of Serbia (more than €1 billion annually)

Expansion of operations in Serbia, Bosnia and Herzegovina, Bulgaria and Romania

Serbia’s pivotal social investor

Equity Structure

Gazprom Neft

56.15% Republic of Serbia

29.87% Minority stakeholders

13.98%

Nearly

€3 BILLION invested in NIS development since

2009

More than

11,000 employees

CORE BUSINESS ACTIVITIES

EXPLORATION AND PRODUCTION

OILFIELD SERVICES

REFINING

SALES AND DISTRIBUTION

ENERGY

EXPLORATION AND PRODUCTION

NIS is the only company in Serbia engaged in oil and gas exploration and production

Most of the Company’s oilfields are located in Serbia

NIS longest standing concession is in Angola (oil extraction commenced as far back as 1985)

2018 RESULTS:

1.332 MILLION tonnes of oil equivalent produced

Hydrocarbon reserves increased by

1.46 MILLION tonnes of oil equivalent, making it possible to offset production by new reserves by

111%

Additionally, NIS is expanding its downstream operations in Romania and Bosnia and Herzegovina

OILFIELD SERVICES

NIS boasts state-of-the-art upstream equipment which meets the Company’s requirements and enables it to operate internationally

Equipment maintenance, construction and maintenance services for oil and gas systems and facilities

Freight transport and heavy equipment operations, passenger transportation and vehicle rental services

Oil and gas exploration and productions services (geophysical surveying, well development, completion and workover, special well operations and logging)

2018 RESULTS:

60 wells drilled

Seismic surveys covered

1,117 SQUARE KILOMETERS in Serbia and

223 SQUARE KILOMETERS in Romania

REFINING

NIS operates the Pančevo Oil Refinery, one

of the most modern in the Balkans

Refinery’s maximum annual installed capacity is

4.8 MILLION TONNES

Products: Euro-5 standard motor fuels, jet fuel, liquefied petroleum gas, raw materials for the petrochemical industry, bitumen and other oil products

The Refinery’s current key investment project is the construction of the Delayed Coking Unit:

AN INVESTMENT WORTH €300 MILLION

2018 RESULTS:

Total refining output for oil and intermediaries reached

3.8 MILLION TONNES (a 6% increase on 2017 and the largest output in the last 10 years)

Largest output and shipment of bitumen in the last 10 years -

416,000 TONNES

SALES AND DISTRIBUTION

In Serbia and other countries in the region (Bosnia and

Herzegovina, Bulgaria and Romania), NIS operates a

network of more than

400 PETROL STATIONS

Over

20% of the retail chain is located

outside Serbia

Two retail brands:

NIS Petrol

and GAZPROM

As its separate business segments, NIS is developing jet fuel sales, bunkering services and lubricant and bitumen sales and distribution

Promotion of the “On the Road with Us” loyalty programme in Serbia and neighbouring countries

NIS exports: energy and motor fuels, gas, lubricants, aromatics

2018 PERFORMANCE:

Total sales:

3.7 MILLION TONNES (a 7% increase on 2017 and the highest sales volume in the last 5 years)

Exports increased by

14%

ENERGY

NIS engages in generation of heat and electricity using conventional and renewable sources, production and sales of compressed natural gas, sales of natural gas, electricity trade, development and implementation of strategic energy projects, development and implementation of energy efficiency improvement projects

In Serbia’s oil and gas fields, NIS owns 14 small heat and electricity generating power plants, with the maximum capacity of

14.5 MW

NIS is active in electricity markets in Serbia, Bosnia and Herzegovina, Romania, Slovenia and Hungary, and it also trades with North Macedonia

Кey development projects under way:

Combined-cycle heat and power plant (CCPP) Pančevo – installed capacity:

196 MW

Wind Farm Plandište – installed capacity:

102 MW

2018 RESULTS:

Power generation –

152 GWh

Contracted volume of electricity –

1.25 TWh

Savings achieved through energy and operative efficiency measures:

RSD 354 MILLION

NIS GROUP’S 2018 FINANCIAL INDICATORS

EBITDA:

RSD 53.7 BILLION

Net profit:

RSD 25.1 BILLION

Taxes and other public revenue payments:

RSD 192.7 BILLION

Dividends paid to shareholders:

RSD 6.9 BILLION

Investments:

RSD 41 BILLION (a 55% increase on 2017)

2025 DEVELOPMENT STRATEGY

NIS 2025 Development Strategy sets foundations for further development in challenging macroeconomic environment as it seeks to increase value for the shareholders, employees and the community in which NIS operates

Another investment cycle has been launched, envisaging investments worth

€2 BILION in the period between 2017 and 2025

STRATEGY GOALS:

•  Maintaining crude oil and gas production indicators and increasing hydrocarbons reserves

•  Further modernisation of the Pančevo Oil Refinery and maximum profitability boost

•  Redesign and modernisation of the retail chain

•  Becoming region’s efficiency leader

•  Building new power generating plants

•  Continual growth of NIS as Serbia’s market leader, boost in EBITDA and net profits

DIGITAL TRANSFORMATION

All business segments are undergoing digitalisation

More than 10 out of 60-plus approved digital projects are under way

Change of corporate culture in all business segments – people and values come first

DIGITAL TRANSFORMATION EFFECT 

SAFETY:

•  Predictive prevention of accidents

•  Automated system for permits for execution of works and operations

EFFICIENCY:

•  Boosting efficiency of oil and gas geological exploration

•  Reducing cost of crude oil production and refining

•  Improved market analysis and communication with clients

TECHNOLOGY:

•  Research and implementation in digital technology

•  Partnerships in digital technology

SUSTAINABLE DEVELOPMENT

THERE ARE FOUR PILLARS OF SUSTAINABLE DEVELOPMENT IN NIS:

•  ECONOMIC PROGRESS

•  HUMAN RESOURCES

•  HSE

•  RESPONSIBILITY TOWARDS THE COMMUNITY

The Company’s goal is to ensure that its processes are carried out with no occupational injuries and negative effects on the environmental

In 2018,

RSD 320 MILLION was allocated for environmental protection projects

PRINCIPLES OF SUSTAINABLE DEVELOPMENT ARE PART AND PARCEL OF EVERY BUSINESS PROCESS IN NIS

SOCIAL RESPONSIBILITY IN BUSINESS

NIS carries out social responsibility programmes under the slogan Future at Work, focusing on supporting the younger generations and developing local communities

Partnership with

13 LOCAL COMMUNITIES in Serbia within the Together for the Community programme

Since 2009, nearly

€30 MILLION has been invested in numerous projects

КEY SUPPORT AREAS: •  Improvement of operation of

science and education institutions

•  Support to health and social care facilities of considerable social importance

•  Development of sport infrastructure

•  Promotion of culture and art

•  Philanthropic and volunteer campaigns initiated or carried out by NIS employees

HUMAN RESOURCES

More than

11,000 EMPLOYEES

Continuous professional

development

In 2018 alone, NIS allocated

RSD 237 MILLION to train its staff,

more than 2,200 TRAINING COURSES completed so far

NIS PROVIDES ITS EMPLOYEES WITH A RANGE OF MATERIAL AND IMMATERIAL BENEFITS: •  Free sports activities and recreation

•  Professional development and training

•  Corporate events for employees

•  Company bonuses

Over

1,000 STUDENTS acquired their first skills and experiences in NIS

Return to Serbia is a programme NIS created in order to provide incentives for experts who have decided to return to Serbia, and to ensure their engagement in the Company’s projects

THANK YOU