1. Regional Expansion: Opportunity & Challenge
Philip Stephenson, Deputy CEO
The Rompetrol Group, NV
World Refining Association
CEE 8th Annual Roundtable
Warsaw, October 19, 2005

2. Table of Contents Company Profile TRG Profile Rompetrol History
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Table of Contents
Company Profile
TRG Profile
Rompetrol History
Regional environment
Expansion premises
The Opportunity
Rompetrol Rafinare’s expansion case
Regional demand and supply
Regional refining capacity
Demand and supply gasoline
Demand and supply distillate
Demand and supply six-products
Rompetrol prices vs. EU prices
Rompetrol Rafinare’s advantage
Strategy
Financials H vs. H1 2004

3. The Rompetrol Group profile
Largest Romanian group of private companies (2004 gross revenues of $1.61 billion), representing almost 7% of state budget revenues and 3% of GDP
32% share of Romanian refined products market
Domiciled in the Netherlands with worldwide operations and assets (though mostly in Romania)
Owned by management
Financed principally by international banks; audited to IAS standards
Mostly active in refining and marketing in the Balkans
One of the country’s largest exporters and taxpayers ($635 million in tax payments in 2004)
Core asset is 4.8 mta. (nameplate) capacity Petromidia refinery north of Constanta
Listed on BSE since April 2004; market capitalization over $800 million; 20% weight in local index

4. Rompetrol - History
Established as the international operator of the Romanian oil industry
Privatized by Management and Employee Buy Out (“MEBO”) and turnover subsequently reduced to below $6 million by 1998
Control purchased by Dinu Patriciu and local investor group
1998 to Series of synergistic acquisitions; private equity investment
2001 to 2003 – Restructuring of management, technology, finances and operations of associated companies; strategic investment by OMV (25.1%)
2004 to 2006 – Becoming a large integrated regional producer of refined products; divestment of OMV and access to capital market; regional expansion

5. Regional refining capacity (barrels/day)
Bulgaria
Georgia
Hungary
Macedonia
Romania
Serbia
Turkey
Source: Platts

6. CEE and Eurasia Demand and Supply of Gasoline, 2004-2006
Source: Cambridge Energy Research Associates

7. CEE and Eurasia Demand and Supply of Distillate, 2004-2006
Source: Cambridge Energy Research Associates

8. CEE and Eurasia Demand and Supply of Six-products, 2004-2006
Source: Cambridge Energy Research Associates

9. Regional expansion: the opportunity
Several countries around Romania don’t have the capacity to develop refining facilities of their own in the near future
The Balkans and Black Sea region is too far and too fragmented to be attractive to US majors, while most European majors have not invested heavily in the region’s growth potential
Romania has a two-year window of opportunity to expand at a fast pace in this region prior to EU integration
Rompetrol has the experience, brand name, and traditional ties that give the company a competitive advantage in conducting business in the region

10. Regional expansion trends
OMV
MOL
ROMPETROL
Rompetrol
Total Wholesale
Storage Capacity
Romania 61,350
Bulgaria 5,800
Albania 14,000
Georgia (under development)
cubic meters

11. Premises for expansion opportunity
As demand rises Romania has enough capacity to export white products
Some countries in the region cannot meet domestic refining and consumption needs
Rompetrol exports 52 percent of its white products
Rompetrol prices lower than the EU average determine competitive offer
Romanian and international capital is seeking regional opportunities
Demand driven increased exports, acquisitions, and distribution network development are underway
Rompetrol is becoming the first multinational company with its base in Bucharest, expanding to the South and East.

12. Rompetrol Rafinare’s case for expansion
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Rompetrol Rafinare’s case for expansion
Most sophisticated refinery in Romania with the highest (81%) white products yield in the region
Strategic location near the Constanta Oil Terminal, on the Black Sea coast case
Direct access to the Danube-Black Sea Channel, the Midia port, and Constanta port (one of largest harbors on the Black Sea); close vicinity to crude oil pipelines
Its own railway yard and logistics assets
Facilities allowing crude oil reception and shipment of liquid products by sea, railway and/or road tankers
Fully incorporated wholesale and retail downstream distribution networks
Established export markets and regional subsidiaries
Expanding its distribution networks and production relationships into the Balkans, the Black Sea Region and the FSU states

13. Rompetrol Rafinare

14. Rompetrol gasoline prices compared to prices in several EU countries

15. Rompetrol diesel prices compared to prices in several EU countries
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Rompetrol diesel prices compared to prices in several EU countries

16. Rompetrol Rafinare refining capacity
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17. Consideration on crude supply
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Consideration on crude supply
Petromidia refinery benefits from processing only Ural crude (strategic decision taken in 2001) improved in 2004 as a result of increased differential between Brent and Ural
Average differential in 2004 was approx. $3.76 per bbl while the average on the last 5 years was less than $2 per bbl
The trend is expected to continue in the near future

18. Rompetrol Rafinare strategy
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Rompetrol Rafinare strategy
Rompetrol Rafinare strives to become, through organic growth and sensible low-cost acquisitions that integrate with its existing operations, the leading low-cost provider of petroleum products in the Balkans and the Black Sea region.
The strategy will be executed by:
Refining: Increasing the quantitative and qualitative performance of the Petromidia platform while upgrading to continue to meet EU quality standards
Downstream: Maintaining an approximate balance between internal and external markets, while establishing direct selling operations in regional countries and building the retail brand in Romania and abroad
Petrochemicals: Restarting of the Ethylene Plant and the related Polyethylene plants and becoming a middle size player in the Balkans
Services: Using services companies synergistically with the group (Rominserv), with third parties (Rompetrol Logistics) or divesting them as “non-core”

19. IFRS Consolidated Financials ’04 vs ’03
Million USD – Standalone - Audited
2004
2003 %
Gross Revenues
1,445
1,138 27
Sales Taxes
(399)
(317) 26
Net Revenues
1,046
821
Gross Margin 90 32
183
Selling, General and Admin
(49)
(56)
-13
EBIT 41
(24)
N/A
EBITDA 86 16
437
Finance, net
(30)
(103)
Exceptional Item -
415
Net profit / (loss) 11
288

20. IFRS Consolidated Financials H1’05 vs H1’04
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IFRS Consolidated Financials H1’05 vs H1’04
Million USD
H1’05
H1’04 %
Gross Revenues
989
599
+65
Sales Taxes
(223)
(161)
+39
Net Revenues
766
438
+75
Gross Margin
127 37
+243
SGA & other
(50)
(38)
+32
EBIT 77
(1)
N/A
EBITDA 97 24
+304
Finance, net
(21)
(20) +5
Forex 15 2
+650
Net result 71
(19)