November 2016 PT Pertamina (Persero): 3Q16 (unaudited) results Strictly Private and Confidential 1
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Disclaimer
By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by representatives of PT Pertamina (Persero) (together with its subsidiaries, the “Company”) for use in presentations by the Company at investor meetings and does not constitute a recommendation regarding the securities of the Company or any of its affiliates. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither the Company nor any of the Company's affiliates, advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation contains data sourced from third parties and the views of third parties. In replicating such data in this presentation, the Company makes no representation, whether express or implied, as to the relevance, adequacy or accuracy of such data. The replication of any views in this presentation should be not treated as an indication that the Company agrees with or concurs with such views. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, advisors or representatives are under an obligation to update, revise or affirm. The information communicated in this presentation contains certain statements that are or may be forward-looking. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to, among other things, the operations, business, strategy, plans, goals, consolidated results of operations and financial condition of the Company. These statements typically contain words such as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” "anticipates" and words of similar import. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Any investment in securities issued by the Company or any of its affiliates will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. Against the background of these uncertainties, readers should not rely on these forward-looking statements. The Company assumes no responsibility to update forward-looking statements or to revise them to reflect future events or developments. This presentation and the information contained herein do not constitute or form part of any offer for sale or subscription of, or solicitation or invitation of any offer to buy or subscribe for, any securities of the Company, including any notes to be issued under the Company’s global medium term note program (the “Notes”), in any jurisdiction. Any decision to purchase or subscribe for any securities of the Company, including the Notes, should be made solely on the basis of information contained in the offering memorandum (as supplemented or amended) issued in respect of the offering of such securities (which may be different from the information contained herein) after seeking appropriate professional advice, and no reliance should be placed on any information other than that contained in the offering memorandum (as supplemented or amended). This presentation is confidential and the information contained herein are being furnished to you solely for your information and may not be reproduced or redistributed to any other person, in whole or in part. In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, taken or transmitted or distributed. The information contained in this presentation is provided as at the date of this presentation and is subject to change without notice.
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Refining &
Petrochemical
Megaproject Director
Organizational Update
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Gas, New &
Renewable Energy
Director
Yenni Andayani
Marketing Director
Ahmad Bambang
Finance Director
Arief Budiman
Human Resources
& General Affairs
Director
Dwi Wahyu Daryoto
Rachmad Hardadi
Refinery Director
President Director & CEO
Dwi Soetjipto
Upstream Director
Syamsu Alam
Gas Director
Yenni Andayani
Marketing
Director
Act: Ahmad Bambang
Finance &
Corporate
Strategy Director
Arief Budiman
Human Resources
IT & General
Affairs Director
Dwi Wahyu Daryoto
Act: Rachmad Hardadi
Refinery Director
President Director & CEO
Dwi Soetjipto
Upstream Director
Syamsu Alam
COO / Deputy President
Director & CEO
Ahmad Bambang
Rachmad Hardadi
New Organization
FINAL DRAFT
3Q16 3Q15
ICP (USD/BBL) 37.88 52.21
Revenues 26.62 31.99
EBITDA 6.23 3.55
Net Income 2.83 0.91
SG&A Cost (OPEX) 1.62 1.43
3Q16 Highlights
Key Financial Highlights (USD Billions)
65% 35%
EBITDA by Segment (Percentage)
27%
73%
Upstream
Downstream
& Others
3Q16
Upstream & Geothermal:
• Matindok Gas Development Project
• Jambaran-Tiung Biru Gas Field
• Geothermal Lumut Balai 1 & 2, Ulubelu 3 &4
Midstream, gas pipeline network:
• Muara Karang – Muara Tawar – Tegalgede (West Java)
• Gresik – Semarang (East Java & Central Java)
Downstream:
• Upgrade on Refinery IV Cilacap (Proyek Langit Biru Cilacap)
• Development of Fuel Terminal in Sambu Island
Priority Projects 2016
Revenues by Segment (Percentage)
91%
9%
92%
8%
3Q16 3Q15
Upstream
Downstream
& Others
3Q15
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Crude Processing Deal with Shell
Pertamina appointed Shell to process the crude from
Iraq’s West Qurna 1 Block to produce Gasoline RON 88
Shell will process 1 million barrels of crude per month
from July to December 2016 at Singapore refinery.
Recent Developments
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Source: Pertamina
Maurel et Prom Share Purchase
Pertamina purchased 24.53% shares of Maurel et Prom
(MP), a France based independent oil and gas company.
MP’s operations are in Gabon, Namibia, Nigeria, Tanzania,
Myanmar, Canada, and Italy.
Pertamina is currently performing a voluntary tender offer,
expected to be completed by the end of 2016.
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Head of Agreement with REPSOL
Pertamina and Repsol signed the HoA to develop Treated
Distillate Aromatic Extract (TDAE) Plant at Refinery Unit
IV, Cilacap.
Plant is designed at a capacity of 60.000 tons/annum of
TDAE, to process Distillate Aromatic Extract into a Rubber
Processing Oil (material for synthetic rubber and tire).
Plant will be operated in 2019. Total investment amounting
to US$ 80 Million.
Efficiency Program
Pertamina maintains continuous efficiency program
through Breakthrough Project (BTP) New Initiatives.
The program yielded a value of US$ 1.6 Billion as of
3Q2016.
Includes Optimization of Integrated Supply Chain, Hydro
Procurement, Marketing Operation Excellence and
Upstream Efficiency Initiative.
New Product Launch
Pertamina launched Pertamax Turbo, a gasoline with
minimum Research Octane Number of 98.
Pertamina also introduces Pertamax Turbo to the
European market (Belgium, France, UK, Italy).
FINAL DRAFT
Financial Performance
Revenues
COGS & OPEX
Income from Operations
Net Income
EBITDA
EBITDA Margin (%)
USD Billions
3Q15
32.00
2015
41.76
2014*
70.00
-40%
-17%
-2%
3Q16
71.10
26.62
2013
-27%
-42% -1%
3Q16
21.57
3Q15 2015
37.84
2014*
65.56
2013
66.26
29.55
+107%
-12% -8%
3Q16
5.05
3Q15
2.44
2015
3.92
2014*
4.44
2013
4.84
2015
1.42
2014*
1.45
2013
3.06
+209%
-2%
-53%
3Q16 3Q15
0.91
2.83
6.23
3.55
5.135.74
6.66
2013 3Q16 3Q15 2014* 2015
-14% +75% -11%
23.42
11.0912.28
8.209.30
3Q16 3Q15 2015 2014 2013
*Restated 6
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Upstream Performance
Daily Oil Production (MBOPD)
Daily Gas Production (MMSCFD)
Daily Oil and Gas Production (MBOEPD)
Yearly Oil Production (MMBO)
Yearly Gas Production (BSCF)
Yearly Oil and Gas Production (MMBOE)
309277278270
202
+12%
+3% +34%
3Q16 3Q15 2015 2014* 2013
1,9531,730
1,9021,6131,528
+13% +18%
+6%
3Q16 3Q15 2015 2014 2013
646575607
549465
+12% +11% +18%
1H16 1H15 2015 2014* 2013
84.7775.56
101.6098.61
73.55
+12% +3% +34%
3Q16 3Q15 2015 2014* 2013
535472
694589558
+13%
+18%
+6%
3Q16 3Q15 2015 2014 2013
Production figures includes overseas production & entitlement.
*Restated due to change in the method of accounting record
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177157
221200
170
+18% +11%
+13%
3Q16 3Q15 2015 2014* 2013
FINAL DRAFT
Refining Performance
Total Intake (MMBbl) Total Output (MMBbl)
Yield Valuable Product On Total Intake (%) Volume Valuable Product (MMBbl)
226,28
+8%
-3% 0%
3Q16
244,91
3Q15 2015
305,95
2014
314,42
2013
314,03
214,66
+8%
-2% +1%
3Q16
230,94
3Q15 2015
290,22
2014
297,36
2013
295,27
+5% +3% +1%
3Q16
77,75
3Q15 2015
75,52
2014
73,14
2013
72,47 74,39 +13%
0% +1%
3Q16
190,29
3Q15 2015
231,05
2014
229,98
2013
227,59
168,32
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Marketing & Trading Performance
Fuel Sales (Million KL) Non-Fuel Sales (Domestic Gas & Petrochemical ) (Million KL)
Lubricant Sales (Million KL)
+5%
-5% 0%
3Q16
47,80
3Q15 2015
61,69
2014
65,23
2013
65,37
45,73
13,97
2014
13,80
2013
12,06
+5%
+1% +14%
3Q16
10,80
3Q15 2015
10,28
+2%
+3%
-23%
3Q16
0,35
3Q15 2015
0,46
2014
0,44
2013
0,58
0,34
28,2%
54,5% 0,8%
16,5%
13,3%
73,0%
12,9%
0,7%
PERTALITE (RON 90)
PERTAMAX PLUS (RON 95)/TURBO (RON 98)
PERTAMAX (RON 92)
PREMIUM (RON 88)
Shift in Fuel Consumption (Total National Sales)
Jun 2016 Sep 2016
9
8,4%
4,2%
86,8%
0,6%
Jan 2016