Wintershall Dea Fixed Income Investor Presentation SEPTEMBER 2019 - PowerPoint PPT Presentation

Wintershall Dea Fixed Income Investor Presentation SEPTEMBER 2019

INVESTOR PRESENTATION AGENDA COMPANY INTRODUCTION AND STRATEGY 1 2 CREDIT HIGHLIGHTS HISTORICAL FINANCIALS 3 CONCLUSION 4 APPENDIX A PAGE 2

SECTION 1 COMPANY INTRODUCTION AND STRATEGY PAGE 3

COMPANY INTRODUCTION AND STRATEGY FOCUSED ACTIVITIES ACROSS THE E&P VALUE CHAIN UPSTREAM MIDSTREAM European Pipeline Exploration – Development – Production Networks 1 2 Stable cash flows Strong cash flows from from infrastructure E&P activities assets SOURCE: COMPANY INFORMATION PAGE 4

COMPANY INTRODUCTION AND STRATEGY WINTERSHALL DEA AT A GLANCE DIVERSIFIED UPSTREAM PORTFOLIO CENTRED AROUND 4 REGIONS RESERVES CATEGORISATION (2018YE) 589 mboe/d 66% Gas Baa2/BBB 2018 WI Production 2018 Production Split Moody’s/Fitch Ratings bn boe 2P+2C 2P RP 1 1P RP 1 RP 1 18 years 15 years 31 years Russia Northern Europe 2P Res: 2,345 mmboe 2P Res: 893 mmboe 1P/2P 1 2 Ratio ‘18 Prod: 203 mboe/d ‘18 Prod: 252 mboe/d 82% 35% 3 2.6 Middle East & North Africa (MENA) Latin America 35% 65% 2P Res: 268 mmboe 2P Res: 201 mmboe 4 3 ‘18 Prod: 74 mboe/d ‘18 Prod: 60 mboe/d 2 3.7 2.9 2 3.0 3 6.3 34% 66% €6.3bn €3.6bn €1.2bn 1P 2P 2C 2P+2C 2018 PF Sales Revenues 2018 PF EBITDAX 2018 Free Cash Flow 4 RESERVES TO PRODUCTION RATIO (OR RESERVES AND RESOURCES TO PRODUCTION RATIO, WHERE APPLICABLE). 1 2 93% AUDITED BY EXTERNAL AUDITORS. 3 NOT EXTERNALLY AUDITED. 4 AGGREGATED NUMBER FOR WINTERSHALL AND DEA. PAGE 5

COMPANY INTRODUCTION AND STRATEGY WINTERSHALL DEA MERGER SHAREHOLDING STRUCTURE STRATEGIC RATIONALE FOR THE MERGER  Create the Leading European Independent exploration and production company with strong international operations and significant scale  Increase competitiveness and future viability (33% 5.7% 67% (27.3%) (72.7%)  Create value through additional growth opportunities and realization of €200m p.a. of synergies by year 3 of the merger Ordinary shares Preference shares 1 SOURCE: COMPANY INFORMATION. 1 PREFERENCE SHARES WILL BE CONVERTED INTO ORDINARY SHARES IN WINTERSHALL DEA NO LATER THAN 36 MONTHS AFTER CLOSING OF THE MERGER BUT IN ALL CASES BEFORE AN IPO. PAGE 6

COMPANY INTRODUCTION AND STRATEGY CORPORATE STRATEGY Robust financial framework anchored on commitment to Baa2/BBB rating • Financial Discipline Disciplined and prudent cash prioritisation and capital allocation framework • Sustainable shareholder returns through the cycle • Balanced profitable growth and sustainable shareholder distributions • Balanced Value Creation Portfolio renewal through focused exploration and accretive M&A opportunities • Relentless focus on health and safety and minimising our environmental footprint • Operational Excellence Continuous improvement of efficiency with focus on maintaining top quartile operating costs • Partner of choice with proven ability to forge enduring and mutually beneficial relationships • Partner of Choice Maintaining and growing operating capabilities • Maintaining low carbon gas dominated portfolio • Contributing to the energy transition by continuously improving carbon efficiency in all activities • Energy Transition Developing a leading position in transparency on carbon footprint • PAGE 7

COMPANY INTRODUCTION AND STRATEGY ESG FRAMEWORK Governance Environment & Climate Protection We are committed to doing We constantly minimize our ecological We explore and business responsibly and footprint and use resources efficiently. produce gas and oil creating trust through worldwide in transparency. the most efficient Principles Social Responsibility and responsible way. We enforce social standards in all we do and actively engage with our stakeholders. Operational Climate Diversity Value Chain Stewardship 66% of our production is ISO 14001 and 45001 Embracing diversity and Supplier Code of Conduct • • • • low-carbon gas on relevant locations inclusion includes our ESG standards Sustainability para-meters Focus Areas No routine flaring in own Water risk assessment Over 60 nationalities part • • • • part of supplier operations 1 on relevant sites of inclusive culture assessments Low CO 2 emission intensity Platform recycling in Share of >30% women in • • • of around 11 kg/boe the north sea workforce above industry Joint Venture Partnering • average 2 program Support of long-term • community development Initiatives Zero Routine Flaring Methane Guiding by 2030 Initiative Principles 1 CURRENTLY EXCEPT LIBYA DUE TO THE SECURITY SITUATION. 2 INDUSTRY AVERAGE OF 22% ACCORDING TO WORLD PETROLEUM COUNCIL (2017) SOURCE: COMPANY INFORMATION PAGE 8

SECTION 2 CREDIT HIGHLIGHTS PAGE 9

CREDIT HIGHLIGHTS Leading European Independent Gas and Oil Company with a large and diversified portfolio 1 Resilience through industry leading operating costs 2 Strong partnerships with world class operators 3 High visibility on medium term profitable growth 4 5 Major European pipeline distribution network providing stable and highly visible cash flows Robust financial policy underpinned by commitment to Baa2/BBB credit rating and disciplined 6 capital allocation framework 7 Highly experienced management team with strong corporate governance The Leading European Independent Gas and Oil Company PAGE 10

CREDIT HIGHLIGHTS LEADING EUROPEAN INDEPENDENT GAS AND OIL COMPANY WITH A LARGE 1 AND DIVERSIFIED PORTFOLIO 2018 2P RESERVES SOME OF OUR KEY ASSETS 2 Liquids Gas 73% Russia 27% • Achimov I 96 mboe/d • 3.7 1 Achimov IV & V • First gas: 2020/2021 • (bn boe) • Yuzhno Russkoye 150 mboe/d • 2018 PRODUCTION Vega DIVERSIFICATION Russian • 27 mboe/d Brent / Gas 36% Liquids 34% 589 Mittelplate (mboed) 21 mboe/d • European Argentinian Spot Gas Egyptian CMA-1 Gas 11% 15% Gas 4% 2018 EBITDAX 3 51 mboe/d • OECD 71% Ghasha Development 3.6 (€bn) First gas: 2022 • Non- OECD 29% SOURCE: COMPANY INFORMATION. 1 93% EXTERNALLY AUDITED. 2 2018 WI PRODUCTION. 3 PRO FORMA 2018 EBITDAX. PAGE 11

CREDIT HIGHLIGHTS RESILIENCE THROUGH INDUSTRY LEADING OPERATING COSTS 2 PRODUCTION COSTS 1 VS. PEERS 2 PRODUCTION COSTS OVER TIME (US$/BOE; THREE-YEAR AVERAGE (US$/BOE) 2016A – 2018A) 4.5 7.1 4.3 H1 19 3 14A Peer median: $8.2/boe SOURCE: COMPANY INFORMATION. NOTE: OCCIDENTAL PETROLEUM (OXY) METRICS ARE PRO-FORMA FOR ANADARKO. ¹ PRODUCTION COSTS INCLUDE ONLY PRODUCTION RELEVANT AND OPERATING LEASE EXPENSES. ² INCL. AKER BP, APACHE, BP, CONOCOPHILLIPS, ENI, EQUINOR, GALP, HESS, LUNDIN, NOBLE ENERGY, OMV, OXY, REPSOL, SANTOS, SHELL, TOTAL, WOODSIDE. 3 AGGREGATED NUMBER FOR WINTERSHALL AND DEA. FOR ILLUSTRATIVE PURPOSES ONLY. PAGE 12

CREDIT HIGHLIGHTS STRONG PARTNERSHIPS WITH WORLD CLASS OPERATORS 3 PROVEN PARTNERSHIP MODEL WITH LONG HISTORY OF OPERATIONAL TRACK RECORD (2018 PRODUCTION SPLIT) Production Operating in the Country 2018, mboe/d country since Key Partners Russia 252 1990s Non-operated 19% JV-operated 67% Norway 140 1970s Argentina 71 1980s Operated 14% Egypt 26 1970s Mexico 3 2017 UAE N/A Development SOURCE: COMPANY INFORMATION. PAGE 13

CREDIT HIGHLIGHTS HIGH VISIBILITY ON MEDIUM TERM PROFITABLE GROWTH 4 OUR MAJOR DEVELOPMENT PROJECTS AND PRODUCING ASSETS WITH FURTHER UPSIDE Norway Russia Njord Bauge (Njord area) • • Achimov IV & V • Plateau production: Plateau production: • • Plateau production: • 40 mboe/d 10 mboe/d 90 mboe/d • First oil: 2020 • First oil: 2020 First gas: 2020/2021 • Dvalin Nova • • Yuzhno Russkoye (Turonian) • • Plateau production: • Plateau production: Plateau production: • 30 mboe/d 30 mboe/d 40 mboe/d First gas: 2020 First oil: 2021 • • First gas: 2019/2020 • Ærfugl • Plateau production: • 25 mboe/d UAE First oil: 2020 • Ghasha Concession • Plateau production: • 40 mboe/d Mexico • First gas: 2022 Zama • FID 2021 • Egypt • Raven (WND) Plateau production: • Argentina (pre-FID) 30 mboe/d • First gas: Q4 2019 Fenix • FID 2019/2020 • Aguada Federal & Bandurria • Norte FID 2020 • Profitable production growth to 750 mboe/d by 2023 SOURCE: COMPANY INFORMATION PAGE 14