DEA Group · PDF fileJyske Bank Credit Company Day September 2017. DEA Group Page 2 Disclaimer...
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DEA GroupJyske Bank Credit Company Day
September 2017
DEA Group Page 2
Disclaimer
Forward-Looking Statements
This communication may include projections and other “forward-looking: statements within the meaning of applicable securities laws, which are based on current expectations and projections about future events and financial
performance. Statements herein, other than statements of historical fact, regarding future events or prospects, are forward-looking statements. The words “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “estimate”, “plan”,
“predict”, “intend” or variations of these words, as well as other statements regarding matters that are not historical fact or regarding future events or prospects, constitute forward-looking statements. L1E Finance GmbH & Co KG (the
“Company”) has based these forward-looking statements on its current views with respect to future events and financial performance in addition to certain assumptions about the future, some of which are beyond the Company’s
control. These forward-looking statements involve a number of risks, uncertainties, and assumptions about the Company and its subsidiaries and its investments, including, among other things, the development of its business, trends
in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, actual results may not occur or may differ materially from those predicted in the forward-looking
statements and from the past performance of the Company. As a result, you should not rely on these forward-looking statements. Neither the Company nor any other person make any warranties or representations about accuracy,
sequence, timeliness or completeness of the content of the presentation or the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any.
Non-GAAP and Non-IFRS Financial Measures
This communication may contain certain non-GAAP and non-IFRS measures and ratios, including for example EBITDAX, net debt, net working capital, coverage ratios and EBITDAX per boe that are not required by, or presented in
accordance with, any GAAP or IFRS.
The non-GAAP and non-IFRS measures and ratios may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for
analysis of our operating results as reported under IFRS or any GAAP. Our management uses these measures to measure operating performance and liquidity, in presentations to our Management Board and as a basis for strategic
planning and forecasting, as well as monitoring certain aspects of our operating cash flow and liquidity. We present non-GAAP and non-IFRS measures and ratios because we believe that they and similar measures are widely used by
certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. Non-GAAP and non-IFRS measures and ratios such as EBITDAX, coverage ratios and EBITDAX per boe are
not measurements of our performance or liquidity under IFRS and should not be considered as alternatives to operating profit, profit for the year, capital expenditure or any other performance measures derived in accordance with IFRS
or any GAAP or as alternatives to cash flow from operating, investing or financing activities.
We present in this communication a reconciliation of each of the non-GAAP and non-IFRS measures to the most directly comparable measure calculated and presented in accordance with IFRS and discuss its limitations
See note above.
Some of the limitations of EBITDAX are:
• they do not reflect our cash expenditures or future requirements for contractual commitments;
• they do not reflect changes in, or cash requirements for, our working capital needs;
• they do not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments on our debt;
• although depreciation and amortization are non cash charges, the assets being depreciated and amortized will often need to be replaced in the future and EBITDAX does not reflect any cash requirements that would be required to
make such replacements;
• they do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; and
• other companies in our industry may calculate these measures differently from the way we do, limiting their usefulness as comparative measures.
Because of these limitations, EBITDAX should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. You
should compensate for these limitations by relying primarily on our IFRS results and using these non-GAAP and non-IFRS measures only to supplement your evaluation of our performance.
September 2017 | Investor Presentation
DEA Introduction
DEA Group Page 4
Germany / Denmark
29%
Norway 45%
Egypt26%
Germany / Denmark
20%
Norway45%
North Africa35%
DEA – Overview
DEA Company Overview
› DEA is a leading European E&P company with 2016YE 2P WI
reserves of 667mmboe and 2016 production of 138kboe/d
› DEA currently operates c.50% of its production
› Since DEA’s founding in 1899, DEA has become one of the largest full
cycle upstream oil and gas companies in Europe leveraging its technical
excellence and experience to develop and operate upstream oil and gas
assets mainly in Germany, Norway, Denmark, Egypt and Algeria
› In 2015, DEA was acquired by L1 Energy, an investment vehicle of
LetterOne. LetterOne is a well capitalised, privately owned
investment business
› DEA aims to increase production in its core areas, maintain a disciplined
approach to financial management and focus on safety and
operational excellence
2014A 2015A 2016A6m
2016A(2)
6m
2017A(2)
Production
(kboe/d)101 164(1) 138 147 134
Revenue
(EURm)2,031 1,425 1,476 753 757
EBITDAX
(EURm)1,155 828 776 383 486
Capex (EURm) 669 610 646 296 388
2P Reserves by Geography (2016)
2P reserves: 667 mmboe
(1) Incl. E.ON Norge and excl. UK
(2) Represents L1E Finance GmbH & Co KG results
Summary Financial Information
DEA Assets Overview
Denmark
Germany
Norway
Algeria
Egypt
West Nile DeltaDisouq
Gulf of Suez
Reggane Nord
Mittelplate
Völkersen
Skarv
Dvalin
Snøhvit
Snorre
6m 2017 Production by Geography
6m 2017 production 134 kboe/d
September 2017 | Investor Presentation
Ba3 / BB- / BB Corporate Ratings by Moody’s, S&P and Fitch Respectively
DEA Group Page 5
1899-1966
Established 1899, developed to “Deutsche Erdöl Aktiengesellschaft” (DEA)
› Integrated oil company involved in upstream, refining, chemicals, storage, mining
› International upstream activities in Europe including Denmark, Austria, Norway, the Gulf, Syria, Dubai, Turkey and
South America
1966-1987
Public takeover by Texaco, “Deutsche Texaco Aktiengesellschaft”
› Dubai production contributing to company performance
› 1985 Schwedeneck See oil field, 1987 Mittelplate coming onstream
› Wietze lab responsible for Texaco Eastern hemisphere
1988-1998
“RWE-DEA Aktiengesellschaft für Mineralöl und Chemie”
› 1995 Völkersen production start, 1996 discovery Hanze (Netherlands)
› 1996 entry into Kazakhstan
1998-2002German upstream company Deminex (RWE 18.5%) broken up; Norway and Egypt go to Dea, Netherlands to Veba Oil;
sale of downstream and chemical business
2002-2005Renamed to “RWE Dea AG”, acquisition of Highland Energy UK, country entry Libya, Algeria and first gas discoveries in
Egypt, Algeria and Norway
2006-2014Sale of Akshabulak (Kazakhstan); acquisition of Clipper South and Breagh (UK), country entries in Turkmenistan,
Trinidad & Tobago, Suriname and Guyana; sale of Edvard Grieg (Norway)
2015L1 Energy acquired DEA, bringing in a long-term strategic partner in LetterOne; acquisition of E.ON E&P Norge AS
(Norway) strengthened existing Norwegian position; sale of UK assets to INEOS
2016
DEA sanctioned its first operated development in Norway, Dvalin
Received its debut ratings of BB- by S&P and BB by Fitch and issues its inaugural €400m bond
DEA acquired additional interests in seven licences from Engie, including 20% increased interest in Njord
2017
Sanctioned redevelopment of Njord and Bauge development
West Nile Delta first gas achieved
Received Moody’s corporate and unsecured ratings of Ba3
First exploration licence in Mexico awarded and opened an office in Brazil
118 Year History
September 2017 | Investor Presentation
DEA Group Page 6September 2017 | Investor Presentation
Recent Highlights
Production
137 kboe / d in Q2 2017+4% vs Q1 2017
EBITDAX
€275 million in Q2 2017 +30% vs Q1 2017
LTM Leverage
1.86x in Q2 2017vs 2.26x in Q1 2017
Projects
First exploration license in Mexico awarded
Njord and Bauge PDO approved by the authorities
West Nile Delta first gas achieved
Production Costs
$6.7 / boe in Q2 2017
vs. $8.3 / boe in Q2 2016
Financial
$125m partial settlement of EGPC outstanding receivables
Upgrade of S&P Issue Rating to BB- from B+; Moody’s rating of
Ba3 for both corporate family and senior unsecured notes
assigned
RBL available amount unchanged at $2,300m post re-calculation
DEA Group Page 7
› Increase production in existing core assets and execute development of operated fields
› Develop Dvalin and Njord gas fields in Norway, realise potential of West Nile Delta, Disouq and
Reggane gas projects
Grow production
and execute key
projects
September 2017 | Investor Presentation
DEA Strategy
› Increase production in existing core assets and execute development of operated fields
› Develop Dvalin and Njord gas fields in Norway, realise potential of West Nile Delta, Disouq and
Reggane gas projects
Increase company
value through
balanced organic &
inorganic growth
› Capitalise on exploration success in known and emerging plays targeting exploration while
spending below 15% of after-tax investment budget
› Pursue production and asset development opportunities in Norway and Denmark, asset roll up
opportunities in Germany, as well as potential acquisitions in other areas such as Brazil and
Mexico
Focus on costs and
capital efficiency
› Manage the size and structure of the organisation in line with lean business model
› Exit non-core assets and areas
› Further improve costs through technological and procurement optimization
› Manage the size and structure of the organisation in line with lean business model
› Exit non-core assets and areas
› Further improve costs through technological and procurement optimization
Deliver high QHSE
standards and
sustainability of
operations
› Maintain industry-leading QHSE standards and environmental track record
› Further develop operational capabilities in key areas of company’s strengths
› Maintain industry-leading QHSE standards and environmental track record
› Further develop operational capabilities in key areas of presence
DEA Credit Highlights
DEA Group Page 9
World class asset base providing long term growthKey Credit Highlights
September 2017 | Investor Presentation
Producing Assets
Concentrated in
Low-Risk Countries
1
Supportive
Shareholder
8Diversified Portfolio
of Assets with
Competitive
Production Costs
2
Significant Reserve
Base Supporting
Production Growth
3
Significant Liquidity
and Financial
Flexibility
7
Excellent QHSE
Track Record
5
Proven Project
Development
Capabilities
4
Experienced
Management Team
6
DEA Group Page 10
World class asset base providing long term growthProducing Assets Concentrated in Low-risk Countries
with Developed Infrastructure
September 2017 | Investor Presentation
› DEA’s operations are mostly in low-risk OECD countries
90% of DEA’s LTM June-17 revenues and 92% of
EBITDAX came from AAA-rated countries
› Home base in Germany
Largest oil producer in Germany
Operator of the largest oil field in Germany, Mittelplate,
and the largest gas field, Völkersen
› Low country risk
› Established presence in Norway, one of the most resource-rich
hydrocarbon basins in the last decade
40 years track record
Participation in 6 of the 30 largest discoveries
Further strengthened position through E.ON Norge
acquisition
Sanctions two new developments, Dvalin and Njord
› German Federal Government guarantee covers risks in North
Africa
EBITDAX (LTM June-17)(1)Production (LTM June-2017) Revenue (LTM June-17)
Germany
/
Denmark
29%
Norway45%
Germany/ Denmark
29%
Egypt26%
Norway57%
Germany/ Denmark
32%
Egypt10%
1
(1) Excludes negative EBITDAX contribution from Egypt and Group Expenses
Norway60%
Germany/ Denmark
32%
Egypt8%
DEA Group Page 11
Broad asset diversification (2016 production) Average production costs evolution ($/boe)
September 2017 | Investor Presentation
Diversified Asset Portfolio with Competitive and Declining
Production Costs
Skarv22%
Disouq14%
Völkersen12%Gulf of Suez
12%
Snorre9%
Mittelplate9%
Other22%
2
9.1
7.4
8.1
6.4
2015 2016 H1 2016A H1 2017
Group Production Costs
DEA Group Page 12September 2017 | Investor Presentation
334
476
399
575
483
667
0
100
200
300
400
500
600
700
800
1P 2P2014 2015 2016
Evolution of Reserves
mm
boe
2P Reserves Breakdown by Country
(1) >99% of reserves are audited by RPS
Germany / Denmark
20%
Norway45%
North Africa35%
Historical Evolution of 2P Reserves (mmboe)High Potential Through Undeveloped Reserves (mmboe)
132
300
235
667
120164
35
319
91%
55%
15%
48%
0%
20%
40%
60%
80%
100%
0
100
200
300
400
500
600
700
800
Germany/Denmark Norway Egypt/Algeria Total
2P 2PD 2PD/2P Ratio
575
-50
+50+25
+67 667
0
100
200
300
400
500
600
700
800
2015 Production Acquisitions GoS ExtensionOrganic Growth 2016
Significant Reserve Base Supporting
Production Growth3
56% -
375mmboe
designated to
the RBL
63% -
364mmboe
designated to
the RBL
mm
boe
DEA Group Page 13September 2017 | Investor Presentation
Proven Project Development Capabilities
›Location ›Development ›Type
Schwedeneck See 1982-84 Offshore
Gulf of Suez 1980-83 Offshore
Mittelplate 1984-86 Transition zone
Snorre A 1992 Offshore oil
Völkersen 1993-94 Deep onshore gas
Breitbrunn
Njord
1995
1995-97
Gas storage
Offshore oil
Kazakhstan 1995-98 Central oil/gas facilities
Dieksand 1998-06 Extended reach drilling
Dieksand 2000 Oil separation facilities
Snorre B platform 2001 Offshore oil
Schwedeneck See 2001 Decommissioning
PL270 Agath 2002 Semisub exploration
Mittelplate 2004 Rig, living quarter, pipeline
Völkersen 2004 Central gas treatment plant
Cavendish(1) 2005-07 Offshore gas development
Libya 2006-11 Onshore exploration
Skarv
Snoevhit2007-11
2007
Offshore oil/gas
LNG development
Brammer 2008 Gas compressor station
Breagh(1) 2010-13 Offshore gas
Clipper South, Devenick(1) 2010-13 Offshore gas
Disouq 2010-13 Onshore gas
Knarr 2011-15 FPSO oil development
Gjøa platform 2012 Oil/gas
Reggane 2012-17 Onshore gas
Alta 2014 Offshore oil
West Nile Delta 2015-17 Offshore gas
Dvalin
Njord Redevelopment
2016-20
2017-20
Offshore gas
Offshore oil
MittelplateVölkersen
West Nile Delta Gulf of Suez
Clipper SouthBreagh
(1) UK business was sold in 2015
Bold denotes operated assets
4
DEA Group Page 14September 2017 | Investor Presentation
Excellent QHSE Track Record5
Worldwide Management System Certificates:
Currently for ISO 14001 (environment), ISO 9001 (quality), ISO 5001
(energy efficiency) OHSAS 18001 (occ. health & safety) since 2015
Additionally in Germany:
ISO 50001 (Energy), Safety Management System of BG RCI German
Social Accident Insurance Institution
DEA incident statistics
International standards implemented as mandatory for DEA:
› International Finance Corporation (IFC):
› Policy on Environmental and Social Sustainability (Performance
Standards)
› Environmental, Health & Safety Guidelines
› ISO, DIN, BS OHSAS, NORSOK, IOGP, API, etc. where applicable
Corporate Integrated Management System:
The DEA Corporate Integrated Management System ensures that our
QHSE policy is brought into practice in setting and following up objectives
and targets by systematically analyzing our processes to strive for business
excellence through the continuous improvement process
LTI = Lost Time Incident
LTIF = Lost Time Incident Frequency
BG = German Social Accident Insurance Institution
16
8 911 10
1 13.14
1.80 1.63 2.27 1.97 0.28 0.32
16.5 16.2 15.514.5 14.3 14.0
0
2
4
6
8
10
12
14
16
18
2010 2011 2012 2013 2014 2015 2016
LTI LTIF LTIF BG
LT
I [N
um
ber] L
TIF
[Num
ber o
f
LT
I / 1 m
iow
ork
ing h
ours
]
Quality, Health, Safety & Environmental (QHSE) is a top priority for DEA and compliance is reviewed regularly by
both internal and external auditors
QHSE Principles
DEA Group Page 15
Manfred Böckmann
Exploration
Jone Hess
Field Development
Rene Pawel
Geo Support Centre
Christoph
Schlichter
DEA Brazil
Hans-Hermann
Andreae
DEA Norge
Thomas Kremski
Strategy & Portfolio
Management
Andrea Pinarel
M&A
Uwe Balasus-Lange
OpCo
Germany/Denmark
Thomas Radwitz
DEA Egypt
19+ years with DEA
SVP Exploration
since 2014
Previous roles with
DEA:
– Manager NV N.
Africa
– General Manager
NV Africa / LatAm
International
experience: Egypt
Geophysicist
23+ years in E&P
Former work
experience:
– ExxonMobil and
E.ON E&P
covering
engineering,
operational,
executive and
executive board
positions
International
experience:
Australia, US, UK,
Germany and
Norway
Petroleum Engineer
27 years with DEA
Over 28 years in
E&P
Previous roles with
DEA:
– SVP Production
Europe
– MD DEA UK
– Head of Field
Development
– Senior District
Manager
Mittelplate &
Dieksand
– Production
Manager
Kazgermunai
International
experience: GER,
UK, Kazakhstan
Petroleum Engineer
15+ years with DEA
31+ years in E&P
GM Brazil since 2017
Previous roles with
DEA:
– GM Libya / Algeria
– SVP Production
North Africa
– MD DEA UK
Former work
experience: Veba Oil
AG, Shell
International
International
experience: Oman,
Netherlands, UK
Petroleum Engineer
13+ years with DEA
Over 35 years in
E&P
Previous roles with
DEA:
– SVP Geo Support
Centre
– GM JV Suez Oil
Co and Dea Egypt
branch
Former work
experience:
Preussag Energy,
Norsk Hydro, Texaco
Germany
International
experience: Norway,
Venezuela,
Germany, Tunisia,
Russia
Petroleum Engineer
14+ years with
DEA/in E&P
SVP Strategy & PM
since 2017
Previous roles with
DEA:
– SVP BD/M&A
– VP Controlling &
BD
– Head of Treasury
Former work
experience at
Reemtsma:
– Head of Internal
Audit
– Manager Corp.
Finance
Economist, PhD
15+ years of oil &
gas experience
Head of M&A at DEA
since 2017
Previously Director
at Bank of America
Merrill Lynch
(Energy M&A)
Former banking and
corporate experience
at:
- UBS Investment
Bank (Energy
M&A)
- Eni SpA (Strategy
&
M&A)
Insead MBA
23+ years with DEA
Previous roles with
DEA:
– SVP Field
Development
– Senior District
Manager
Mittelplate &
Dieksand
– Senior District
Manager Gas
Storages
– Head of Reservoir
Engineering Egypt
– New Ventures
International
experience: Egypt,
Germany
Petroleum Engineer
16+ years with DEA
30+ years in E&P
Previous roles with
DEA:
– MD DEA UK
– Heading the
business in Egypt,
Libya and
Turkmenistan
Former work
experience with
Veba Oil AG:
– Petroleum
Engineer in Golf of
Mexico, USA
– Field Operations
Manager, Libya
– Production
Manager JV
SUCO, Egypt
Petroleum Engineer,
PhD
Experienced Management Team6
Johannes
Karlisch, Dr.
CCO
› Until May 2016, Partner, Finance and
Controlling at L1 Energy
› Previous Positions:
› CFO of Rosneft
› Co-Head of Russian Investment Banking
at Morgan Stanley
› Intern. experience: Russia, UK,
Germany
› Studied Mathematics
Dmitry
Avdeev
CFO
› 13 years of experience at DEA
› Previous Positions:
› General Manager RWE DEA Egypt
› Manager of Production District Holstein
REA DEA
› Various positions at Preussag Energie, e.g.
Development Manager Tunisia
› Intern. experience: Egypt, Tunesia,
Venezuela, Ecuador
› Studied Petroleum Engineering
Dirk
Warzecha
COO
(1) Chief Commercial Officer
› 16 years of experience at RWE/DEA
› Previous Positions:
› CFO at DEA Deutsche Erdoel AG
› VP Group Executive Management at
RWE AG
› Various senior leadership positions at
STEAG AG
› Studied Mathematics, PhD
Johannes
Karlisch
CCO(1)
› 28 years of experience at Texaco/DEA
› CEO since 2010
› Previous positions:
› COO
› Director of Domestic Gas/Oil
› Deputy Managing Director, DEA Norge
› Intern. experience: Norway, Netherlands,
UK
› Studied Petroleum Engineering
Thomas
Rappuhn
CEO
September 2017 | Investor Presentation
DEA Group Page 16
DEA’s financial policy is to maintain net leverage (net debt / EBITDAX) below 2.0x in mid-cycle conditions
› Possible temporary increase up to 2.5x in the event of a major acquisitionLeverage
Liquidity
Business needs to be fully funded at all times at least on a 12-month forward basis, taking into account:
› Conservative macro assumptions, planned investments and scheduled debt services
Shortfall can be covered with working capital lines or further drawdowns on the RBL
Leverage target range of 2.0-2.5x at the centre of all major decisions
September 2017 | Investor Presentation
Capital
Structure
Simple two-tier capital structure in the form of a Reserve Based Lending (RBL) facility and Senior Unsecured Debt
› Target 70-80% utilization of RBL
› Two tier cap structure complimented with overdraft facility for temporary working capital needs
› Explore other sources of financing, such as ring-fenced project financing or other asset backed financings
Significant Liquidity and Financial Flexibility 7
DEA Group Page 17
Mandate
› Establish a safe and sustainably growing global oil and gas company
› Strategically deploy capital for further organic growth and bolt-on acquisitions
Supportive Shareholder8
Long-term, strategic shareholder with depth of E&P experience
› L1 Energy part of L1 Holdings, a member of the LetterOne Group
› LetterOne is an international investment business which target investments in the energy, telecoms, technology, health and
retail sectors, where it has world class expertise
› Founded in 2013 by Mikhail Fridman, German Khan, Alexey Kuzmichev, Petr Aven and several other shareholders
› Combined net assets of $22.2bn, including $9.3bn of liquidity
Ownership
Approach
› Invest in upstream with key focus on production and development
› Indifferent to oil and gas mix, subject to commerciality
September 2017 | Investor Presentation
Financial Results
DEA Group Page 19September 2017 | Investor Presentation
DEA Group(1) Q2 2017 Highlights
(1) DEA Group consists of L1E Finance GmbH & Co. KG and its subsidiaries
(2) Working interest production
(3) Includes hedges and physical forward sales
(4) EBITDAX defined as income before tax, financing costs, exploration expense, DD&A and impairments, acquisitions,
disposals, extraordinary items, minority interest, FX gains and losses, pensions, loss or gain in relation to disposal of fixed
assets
(5) Capex excludes financial asset capex and excludes capex from discontinued operations and acquisitions
(6) Free cash flow comprises of cash flows from operating activities and from investing activities, but excludes cash flows from acquisitions
Note: Certain numerical figures and percentages set out in this presentation have been subject to rounding adjustments
6m 2017 Q2 2017
Production(2) (kboe/d) 134 137
Realized oil price(3) ($/boe) 48 46
Realized gas price(3) ($/mcf) 4.7 4.4
Revenue (€m) 757 368
Production costs ($/boe) 6.4 6.7
Exploration costs (€m) (60) (49)
EBITDAX(4) (€m) 486 275
Net income (€m) 39 74
Capex(5) (€m) 388 204
Free cash flow(6) (€m) 64 77
Net debt (€m) 1,605 1,605
Leverage 1.86x 1.86x
DEA Group Page 20September 2017 | Investor Presentation
4243
46
49
46
Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Production Profile (kboe/d)
Production and Pricing
Commentary
Realized Gas Price ($/mcf)
Q2 2017 production was 4% higher QoQ as West Nile Delta
production start up outweighed natural decline in mature fields,
temporary shut-in of a well in Skarv and planned maintenance of
Snohvit
Q2 2017 share of gas production increased to 62% of total compared
to 55% in Q2 2016 mainly due to the contribution of West Nile Delta
output
Q2 2017 realized oil price was 6% lower QoQ but 9% higher YoY, in
line with Brent price development
Q2 2017 realized gas price was $4.4/mcf, 12% lower QoQ and 4%
lower YoY mainly due to higher gas output in Egypt where fixed
prices are lower than in Europe on average, as well as seasonally
lower NBP and TTF prices QoQ
Realized Oil Price ($/bbl)
Q2 2016 – Q1 2017 Quarterly Realized
Oil PriceQ2 2017 Quarterly Realized Oil Price Q2 2016 – Q1 2017 Quarterly Realized
Gas PriceQ2 2017 Quarterly Realized Gas Price
41
4139
37 41 40 36
44
4137
34 30 28 43
31
71 66 54 60 64 58
116
153142
125 131 132 137
FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Norway North Africa Germany/Denmark
4.6 4.75.3
5.04.4
Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
44%
56%
% oil:
% gas:
43%
57%
44%
56%
45%
55%
38%
62%
44%
56%
45%
55%
DEA Group Page 21
8.3
6.7
Q2 2016 Q2 2017
275313
154 139
(20)
78
(10)
91
185
139
81
66
(57)(44) (30) (21)
383
486
195
275
6m 2016 6m 2017 Q2 2016 Q2 2017
Norway North Africa Germany/Denmark Other
September 2017 | Investor Presentation
Revenues and Profitability
EBITDAX (€m)
Gross Revenues (€m)
Average Production Costs ($/boe)
% margin
Commentary
Q2 2017 revenues largely in line YoY as lower production volumes
were offset by higher oil prices
Q2 2017 EBITDAX was 41% higher YoY, due to reversal of
impairments (€62m) following partial settlement of overdue receivables
from EGPC in May as well as continued cost savings
Q2 2017 production costs decreased by 19% to $6.7/boe YoY, mainly
due to cost reduction measures, depreciation of the Egyptian Pound
and the Euro. QoQ production costs increased mainly due to the Euro
appreciation, but also due to certain one-off events such as workover
in Dieksand and a temporary shut-in of a well in Skarv
Note: Production costs include G&A allocation but exclude export and processing tariffs,
finance items and R&D (1)Incl. rest of the world, central functions and investment property
64%
(1)
52% 75%51%
428 445
223 208
254 227
115 103
71 85
34 57
753 757
372 368
6m 2016 6m 2017 Q2 2016 Q2 2017
Norway Germany/Denmark North Africa
DEA Group Page 22
43
165
27
99
206
209
118
95
32
14
11
10
15
14
296
388
170
204
6m 2016 6m 2017 Q2 2016 Q2 2017
Norway North Africa Germany/Denmark Other
Capital Expenditure
September 2017 | Investor Presentation
(1)Incl. rest of the world, central functions and investment property
(1)
Capex Breakdown (€m)Commentary
Q2 and 6m 2017 capital expenditures increased 20% and 31% YoY
respectively
Norway: expenditures increased mainly due to increased
development activity in the newly sanctioned Dvalin and Njord
fields. Both are in early development stages and progressing
according to plan
Germany/Denmark: expenditures remain low, as continuous
drilling was ongoing only in Mittelplate, whilst drilling in Völkersen
commenced just in June
North Africa: 6m 2017 investments are stable YoY, as Reggane is
nearing completion, while development of the three remaining WND
fields is ramping up
DEA Group Page 23
Cash Position Development
Cashflow Bridge (€m)
September 2017 | Investor Presentation
104
451
(387)
64
(14)
(47)
107
Cash 01/01/17 Cash Flow fromOperations
Cash Flow fromInvestment Activities
Free Cash Flow Cash Flow from M&A Cash Flow fromFinancing
Cash 30/06/17
Mainly Njord
acquisition
payment
Mainly voluntary
reduction of
utilization under
the RBL
DEA Group Page 24
400 400
2,415 2,459
1,736
397 397
1,605 1,605
2,015
44
107
830
1,315
107
SeniorUnsecured
Notes
RBL OverdraftFacility
Cash AvailableLiquidity
SeniorUnsecured
Notes
RBL (drawn) Cash Net Debt30/06/2017
September 2017 | Investor Presentation
Liquidity and Net Debt
(1) Nominal value
(2) Balance sheet amount, net of amortized fees and including accrued interest
FX rate used USD/EUR 1.1412
Net Debt (€m)Source of Liquidity (€m)
(1) (2)
(2)
(1)
(1)
DEA Group Page 25
Hedging Overview
Hedged
Volumes
Oil (as of June 30th, 2017)
2017 2018 2019
Volume
(mmbbl)3.4 3.4 1.4
Price ($/boe) 52.7 54.7 57.7
% of Target
Hedging
Volume
100% 100% 45%
Gas (as of June 30th, 2017)
2017 2018 2019 2020
Volume
(bcf)50.4 24.5 19.5 5.1
Price ($/mcf)(1) 6.2 6.1 5.7 5.7
% of Target
Hedging
Volume
>100% >100% 100% 18%
September 2017 | Investor Presentation
(1) Calculated at the exchange rates applicable on June 30th, 2017
Appendix
DEA Group Page 27
Stable cash flow contributorsGermany & Denmark – Overview
Highlights &
Key Projects
› Germany: largest oil producer in the country (129
mmboe of 2P reserves(1))
Mittelplate/Dieksand (50% WI) – Germany’s
largest oil field, with over half of all remaining
German recoverable oil reserves. Has been
safely operated for almost 30 years by DEA.
Continuous drilling enables steady production.
Produces 12 kboe/d (2016) oil and holds 50
mmboe of 2P reserves
Völkersen (100% WI) – Germany’s largest gas
producing field and has been safely operated by
DEA for 23 years. Produces 16 kboe/d (2016)
mainly gas and holds 40 mmboe of 2P reserves
› Denmark: non-operated position in two producing
fields (3 mmboe of 2P reserves(1), thereof 100% oil)
› Wide range of technical skills applied in own
operated fields (ERD drilling, intelligent well
completions, multi-laterals, own Wietze lab)
Key indicators
Stable cash flow contributors
Current Portfolio / Key Fields Oil & gas (6m 2017 production)
2P Reserves (2016)
2014A 2015A 2016A6m
2016A(2)
6m
2017A(2)
Production (kboe/d) 40 42 39 39 38
Revenue (EURm) 830 714 507 254 227
EBITDAX (EURm) 477 513 346 185 139
Capex (EURm) 104 85 53 32 14
(1) Includes <1% of unaudited reserves
(2) L1E Finance GmbH & Co KG results
Mittelplate38%
50 mmboe
Völkersen30%
40 mmboe
Other Germany
30%39 mmboe
Denmark 2%
3 mmboe
Germany
Denmark
132 mmboe
Oil37%
Gas63%
September 2017 | Investor Presentation
DEA Group Page 28
Oil55%
Gas45%
Norway – Overview
Highlights &
Key Projects
› Norway: over 40 year track record (300 mmboe of 2P
reserves(1))
Skarv (28.1% WI) - producing hub operated by BP
started producing in 2013 (c.31 kboe/d in 2016),
additional near-field development tie-ins like Snadd
Snorre (8.57% WI) – Norway’s second largest oil field,
operated by Statoil, further development concept
(Snorre future) in selection process
Dvalin (55% WI) – first DEA-operated project in
Norway. Sub-sea gas development with a tie-in to
Heidrun platform, the PDO was submitted in October
2016 and acceded by 3 January 2017; approval of
PDO occurred in March 2017
Njord (50% WI) – hub operated by Statoil, offers
significant medium-term growth, revised Plan of
Development and Operations approved by the
authorities in June 2017
DEA is among the top-5 players in the emerging Barents
Sea with Snohvit production, Alta discovery and the
upcoming exploration activities
DEA has participated in six of the largest 30 discoveries in
Norway
Current Portfolio / Key Fields
Key indicators
Well established position in Norway
2P Reserves (2016)
2014A 2015A 2016A6m
2016A(2)
6m
2017A(2)
Production (kboe/d) 28 31 63 69 61
Revenue (EURm) 649 525 832 428 445
EBITDAX (EURm) 519 390 538 275 313
Capex (EURm) 251 204 148 43 165
(1) All reserve figures as per RPS report(2) L1E Finance GmbH & Co KG results
300 mmboe
September 2017 | Investor Presentation
Well established position in Norway with largest EBITDAX contribution to the Group
Oil & Gas (6m 2017 Production)
Njord Area, 88 mmboe,
29%
Skarv/Snadd83 mmboe,
28%
Dvalin, 58 mmboe, 19%
Snorre, 31 mmboe,
10%
Snohvit, 21 mmboe, 7%
Gjoa, 11 mmboe, 4%
Other, 8 mmboe, 3%
DEA Group Page 29
World class asset base providing long term growthNorth Africa – Overview
Highlights &
Key Projects
› Egypt: present in Egypt for about 40 years. Current 2P
reserves of 191 mmboe(1)). Key assets include:
Disouq (100% WI): gas field put in production in 2013
by DEA with significant upside potential
West Nile Delta (17.25% WI): world-class asset;
production from the first two fields started in March 2017
(Taurus and Libra), reaching over 700mmscf/d – more
than planned production rates for these fields. 2019
further fields on stream (Giza, Fayoum and Raven). 2P
reserves of 98 mmboe
Gulf of Suez (100% WI): key assets include Ras
Budran and Zeit Bay, extension right option exercised in
2017
› Algeria (Reggane, 19.5% WI): six gas fields currently under
development, production expected to commence at the end
of 2017
› North African assets are covered by the Investment
guarantees of the Federal Republic of Germany
Key indicators
2014A 2015A 2016A6m
2016A(2)
6m
2017A(2)
Production (kboe/d) 33 42 36 39 35
Revenue (EURm) 262 186 137 71 85
EBITDAX (EURm) 102 10 (27) (20) 78
Capex (EURm) 199 302 444 206 209
West Nile Delta
51%98 mmboe
Disouq36%
68 mmboe
Other13%
25 mmboe
(1) All reserve figures as per RPS report
(2) L1E Finance GmbH & Co KG results
Egypt
Algeria
191 mmboe
Oil21%
Gas79%
September 2017 | Investor Presentation
World class asset base providing long term growth
2P Reserves (2016)
Oil & Gas (6m 2017 Production)Current Portfolio / Key Fields
DEA Group Page 30September 2017 | Investor Presentation
(€m) DEA AG
FY 2016Adjustments L1E Finance
FY 2016.Comments
Revenue 1,476 -16 1,460Slightly lower oil hedges (one off), different accounting
treatment of financial leases for gas storages
Cost of Sales -1,101 -160 -1,261 Due to higher scheduled depreciation
EBITDAX(1) 776 -17 759
Financial Income 129 -119 10Interest income from Upstream loan eliminated in
consolidation at L1E Finance level, no net fx gains
Financial Expenses -224 -48 -272 Shareholder loan interest, net fx losses
Income Taxes 18 +80 98Change in deferred taxes related to purchase price allocation
and current taxes
Net Income -36 -247 - 283Differences in revenues, financial result, taxes and higher
DDA related to purchase price allocation
Free Cash Flow(2) 78 -20 58 Working capital effect
Net Debt 1,795 -30 1,765 RBL net of unamortized fees
Other and Deferred Tax
Liabilities471 +658 1,129
Deferred tax liabilities from purchase price allocation
adjustment
PP&E, Intangible Assets 3,097 +1,859 4,956 Effects from purchase price allocation
Financial Receivables 2,209 -1,875 334 Loans to related parties, intercompany eliminations
Reconciliation of Certain Line Items of L1E
Finance to DEA AG Group
(1) EBITDAX defined as income before tax, financing costs, exploration expense, DD&A and
impairments, acquisitions, disposals, extraordinary items, minority interest, FX gains and
losses, pensions, loss or gain in relation to disposal of fixed assets
(2) Free cash flow comprises of cash flows from operating activities and from investing activities, but excludes cash flows from
Acquisitions
Note: Certain numerical figures and percentages set out in this presentation have been subject to rounding adjustments
P&
LB
ala
nce S
heet
DEA Group Page 31September 2017 | Investor Presentation
L1E Finance Group Highlights 2016/2015
FY 2016 FY 2015
Production(1) (kboe/d) 138 116
2P Reserves (mmboe) 667 575
Realized oil price(2) ($/boe) 42 61
Realized gas price(2) ($/mcf) 5.0 5.2
Revenue (€m) 1,460 1,094
Production costs(3) ($/boe) 7.4 9.1
EBITDAX(4) (€m) 759 566
Net Income (€m) - 283 - 1,107
Capex(5) (€m) 646 546
Free Cash Flow(6) (€m) 58 426
Net Debt (€m) 1,765 1,672
(5) Capex excludes financial asset capex and acquisitions
(6) Free cash flow comprises of cash flows from operating activities and from investing activities, but excludes cash flows
from Acquisitions
Note: Certain numerical figures and percentages set out in this presentation have been subject to rounding adjustments
(1) Working interest production
(2) Includes hedges and forward sales
(3) Production costs include G&A allocation but exclude export and processing tariffs, finance
items, CO² tax and R&D
(4) EBITDAX defined as income before tax, financing costs, exploration expense, DD&A and
impairments, acquisitions, disposals, extraordinary items, minority interest, FX gains and
losses, pensions, loss or gain in relation to disposal of fixed assets
DEA Group Page 32September 2017 | Investor Presentation
DEA Asset Base Overview
(1) Individual sums may not add up due to rounding
(2) Reserves as of January 1st, 2017
Field Operator Working Interest Oil/Gas Split 1PD (mmboe) 1P (mmboe) 2PD (mmboe) 2P (mmboe)2016 Production
(kboepd)Production Start
Germany 90 101 118 129 36
Mittelplate DEA AG 50% Oil 21 33 38 50 12 1987
Volkersen DEA AG 100% Gas 30 30 40 40 16 1994
Low Materiality - - - 38 38 39 39 9 -
Norway 114 206 164 300 63
Gjøa ENGIE 8% Oil / Gas 7 7 11 11 8 2010
Snorre Statoil 8.57% Oil 12 19 22 31 13 1992
Snøhvit Statoil 2.81% Mostly gas 12 19 15 21 3 2007
Knarr BG 10% Mostly oil 2 2 3 3 3 2015
Skarv BP 28.1% Oil / Gas 60 60 83 83 31 2013
Njord Statoil 50% Oil / Gas 16 40 21 69 2 1997
Hyme Statoil 27.5% Oil / Gas 1 1 3 3 1 2013
Bauge Statoil 27.5% Oil 0 12 0 16
Dvalin DEA 55% Gas 0 41 0 58 - 2020
Low Materiality - - - 4 5 5 5 2 -
Egypt 27 137 35 191 36
Gulf of Suez SUCO 100% Oil / Gas 17 20 20 25 16 1983
Disouq DISOUCO 100% Gas 7 45 13 68 19 2013
West Nile Delta BP 17.25% Gas 3 72 3 98 1 2017
Denmark 3 3 3 3 2
Other 0 37 0 44 0
Total 233 483 319 667 138