Supplementary Information for

Investor Conference Call

March 2017

Table of Contents

I. Company Overview 3

II. Market Overview 9

III. Key Credit Highlights 13

IV. Financial Overview 24

2

I. Company Overview

3

Key Facts

4

# 1 ESP1 manufacturer worldwide

13,000+ ESP units manufactured annually

# 1 Russian / # 3 global ESP sales position

# 1 ESP service company worldwide

c.46,700 ESPs installed base

22,000+ serviced wells

500+ clients worldwide

Established track record – dates back to 1897

Notes:

1. Electrical Submersible Pump

Key Clients

Established in 1897, headquartered in Dubai

Leading vertically-integrated global manufacturing company providing:

– Artificial lift systems, specialising in ESPs (mainly onshore wells)

– Related aftermarket services

#500+ clients served globally

Operates 11 manufacturing facilities in 5 countries, 25 service centers in

10 countries and 2 R&D centers

8,663 employees with 3,500 dedicated field personnel

2016: Revenue / EBITDA: USD482m / USD142M

2016 EBITDA margin 29.4%

2016: Net Debt / EBITDA 2.6x

Global ESP Market Share by Revenue, 2016

Ownership Structure

Borets – Global Leader

in Growing Artificial Lift Market

Company Overview

Russian Clients Length International Clients Length

19 years 12 years

19 years 10 years

17 years 9 years

14 years 5 years

14 years 3 years

12 years 2 years

Note:

1. Two beneficiaries of Tangent Fund: Gregory Schtulberg and Mark Shabad

5

Tangent Fund92%

European Bank for Reconstruction and Development ("EBRD")

5%

International Finance Corporation ("IFC")

3%

1

Baker Hughes

24%

Schlumberger21%Borets

11%

GE 8%

Novomet5%

Alkhorayef5%

Other 26%

6

Borets: 100+ Years of History

1897 1952 1995 2002 2006 2012 201420082007

• Acquired Lemaz

manufacturing

facility of stages for

pumps

• Acquired 100% of

Weatherford’s ESP

Business unit

2015

• Weatherford

acquired 33% of

company’s shares

• Acquired Lisva motor

manufacturing facility

• Construction of the

Kurgan cable facility

• Construction of the

Stary Oskol

manufacturing facility

of stages for pumps

• Founded as a

compressor factory

• Developed metal injection

moulding (MIM)

• MIM pump stage manufacturing

facility in Kaluga area

• Stary Oskol production start

• Introduced PMM-

PCP1 technology to

North America

• Began service

operations in

Indonesia, Congo

and Colombia

• First in Russia to start

volume manufacturing

of Submersible

Centrifugal Pumps

2005 2011

• Began service

operations in Serbia

• Group’s manufacturing

facility in Moscow

acquired by shareholders

2016

• Introduced WR22

ESP system for

‘harsh’ well

conditions

targeted at the

US

• Construction of

state of the art

service facility in

Oman

• Serial production of

submersible motors

using “permanent

magnet” principle

Technological

Advancement

Geographical

Expansion

Industrial

Expansion

• Production of

standard and high

temperature resistant

cables

• Began service

operations in Oman

• Borets bought back 38.5%

of equity from Weatherford

• EBRD and IFC become

shareholders of Borets

• Began service operations in

USA, Canada, Venezuela,

Brazil, Egypt, Shanghai

and Slovakia

2013

Shareholder

Changes

Note:

1. PMM-PCP: Permanent Magnetic Motor - Progressing Cavity Pumps

2. WR2: Wear Resistant Wide Range

Facilities / Service Locations Globally

7

A Vertically Integrated Global Platform

14

1112

13

8

6 7

4

20

19

1817

16 30

29

31

33 34

35 36

26

2

15 28

2223

2132

37

38

1

25 Service Centres11 Manufacturing Facilities:

− Stages

− Cable

− Assembly

− Motor

N. America

1. Tulsa (USA, OK)

2. Midland (USA, TX)

3. Tulsa (USA, OK)

4. Nisku (Canada)

5. Nisku (Canada)

6. Redcliff (Canada)

7. Estevan (Canada)

8. Tulsa (USA, OK)

9. Midland (USA, TX)

10. Breckenridge (USA, TX)

10

S. America

11. Maracaibo (Venezuela)

12. Cundinamarca (Colombia)

13. Villavicencio (Colombia)

14. Aracaju (Brazil)

Europe

15. ZTS-Kabel (Slovakia)

16. Zrenjanin (Serbia)

Africa

20. Pointe-Noire (Congo)

MENA

17. Alexandria (Egypt)

18. Al-Kuwait (Kuwait)

19. Suhar (Oman)

24

Asia

38. Shanghai (PRC)

25

2 R&D Centres

3

27

9

Russia

21. Borets-NEO (Yuriev-

Polskiyi)

22. Spetsialnye Tekhnologii

23. Lemaz

24. Oktyabrsky

25. Buzuluk

26. Ufa

27. Moscow

28. Oskol

29. Krasnodar

30. Neftekumsk

31. Usinsk

32. Lysva

33. Nefteyugansk

34. Muravlenko

35. Pyt-Yah

36. Nizhnevartovsk

(Centroforce)

37. Kurgan5

Borets’ Strategy: Leverage Technological Leadership

8

Maintain market leadership in Russia by keeping close to customers and increasing presence in Eastern Siberia

Continue to leverage new technology to expand sales with US majors worldwide

Build on existing successful international platforms, e.g. Oman, Kuwait, Egypt and Colombia

Selectively enter new markets in which Borets is trialling equipment, e.g. Saudi Arabia, Iraq and Mexico

Capitalise on the inevitable fallout from the GE-BH merger and HAL’s acquisitions of Novomet and Summit, especially in the US

Leverage the skills, experience and contacts of newly appointed Borets Board Directors, Pete Miller and Peter Goode

Borets’ Strategy

International Expansion Opportunity Technological Leadership

Borets powers 29% of the world’s ESP wells’ production. There is

significant opportunity to grow internationally

Total ESP wells Rental ESP wells

Total

(‘000s) (‘000s)%

Total

(‘000s) (‘000s)%

Russia 97.0 44.0 45% 21.0 6.1 29%

Rest of the

World64.0 2.7 4% 19.0 0.6 3%

Total 161.0 46.7 29% 40.0 6.7 17%

Borets’ ESP R&D have produced 3 uniquely successful products,

far exceeding competitors’ achievements

Permanent Magnet

Motor (PMM)

See p.21

15-19% power saving

>7000 PMMs for ESPs and PCPs

Wear Resistant

Wide Range (WR2)

See p.22

Increases hardness and design definition

Borets is the only manufacturer

Linear Motor

See p.23

Trialing with a view to displacing Sucker Rod

Pumps

II. Market Overview

9

Borets29%

Others71%

Russia60%

Other Markets

40%

Market Overview - Summary

10

95% of global oil wells rely on Artificial Lift (“AL”) Technology to increase production

ESPs constitute 16% of AL units in operation and are the most valuable type of technology

accounting for c.45% of AL expenditure according to Douglas Westwood* (DW)

ESP expenditure expected to grow 5% CAGR between 2016-2020 according to DW*

Russia is the largest market for ESPs with >60% share globally

Borets produces 29% of all global ESP units

ESP Unit Share

Manufacturers

Markets

* Douglas Westwood World Oilfield Equipment Market Forecast 2016 – 2020 Q3

ESPs outperform rest of OFS sectors in good & bad times (Index 2014 = 100)

40.0

50.0

60.0

70.0

80.0

90.0

100.0

2014 2015 2016 2017 2018 2019 2020

OFS Total Market Expenditure

Total Onshore OFS Expenditure

Total Onshore Artificial Lift Expenditure

Total ESP Expenditure Worldwide

Borets global share:

By revenue: 11%; By volume: 29%

95% of Wells Globally Rely on AL Technology

11

Global Oil Wells(>1m wells)

Source: Company Information

Global Onshore Market Global Offshore market

Global Artificial Lift Market

ESP(c.161k units)

PCP(c.73k units)

SRP(c.693k units)

Other(109k units)

95% of all global

wells relies on

Artificial Lift

% of Artificial Lift Market:

By volume: 16%; By revenue: 38%

95%

Majority of ESP consumers are Borets’ clients:

0

200

400

600 Spend on ESP Equipment and Services, 2015

Represent existing Borets’ clients

USDm

ESP is the Most Valuable Technology

Main Types of Artificial Lift

Sucker Rod Pump

(SRP)

Electric Submersible Pump

(ESP)

Progressive Cavity Pump

(PCP)

SRP

• Consists of a pumping unit on the surface, a downhole pump and rods connecting two pumping units

• Used predominantly onshore, on low volume (typically <200b/d) marginal wells

• Old technology, vulnerable to Borets’ new linear model

ESP

• Comprising of an electric motor, gas separator, multi-stage pump near the bottom of a well bore,

power cable, motor controller transformers and power source at the surface

• High volume and depth capabilities

• Power and capital intensive, but expense is offset by superior drawdown

PCP

• Utilise a rotating helix method to allow ‘heavy’ oil in at the base and be pushed upwards

• Used in medium to shallow well depths

• Low maintenance costs, and are particularly suited to use in heavy oil applications

12

Distribution of Artificial Lift Market, 2016

PCP12%

Other15%

SRP28%

ESP45%

PCP 7%

Other 10%

SRP 67%

ESP 16%

By Units in Operation

By Expenditure*

ESP is the most valuable type of technology accounting for 45% of revenues

* Douglas Westwood World Oilfield Equipment Market Forecast 2016 – 2020 Q3

III. Key Credit Highlights

13

Key Credit Highlights

Source: Company Information

Notes:

1. After Baker Hughes and Schlumberger

2. PMM: Permanent Magnetic Motor

Dominant global market share in ESPs - #1 manufacturer by volume; #1 service

company by installed base; #3 global market share by revenues11

Pioneer in ESP technology since 1952. More recently, Borets has introduced

PMM2, Wear Resistant Stages and Linear Motor technologies2

Global presence - well placed to grow as activity picks up3

Plays in the operating cost segment (not capital expenditure) of the oil

production lifecycle – hence, low oil price correlation5

Vertical integration across manufacturing, rental and service (including

3rd party pumps)4

Strong operational excellence with an unparalleled safety track record7

14

A pioneer in

the sector

Robust financial performance due to cost controls, deleveraging business

profile and strong pipeline visibility; record EBITDA margin in 20166

Dominant Global Market Share

15

Distribution of Revenue by Major ESP Suppliers and Geography (2016) Market share by Units (2016)

Global Russia

Borets 29%

Others 71%

Borets 45%

Others 55%

Market share by Revenue (2016)

Global Russia

Borets 11%

Others 89%

Borets 29%

Others 71%

Borets is #1 player in Russia and #3 player globally behind Baker Hughes and Schlumberger

0%

20%

40%

60%

80%

100%

20% 40% 60% 80% 100%0% 10% 30% 50% 70% 90%

ES

P M

arke

t S

har

e b

y C

om

pan

y (U

SD

)

ESP Unit Share by Geography (%)

Others

Others

Others

Others

Market

31% 21% 14% 22% 12%

Russia & CISN. America

& EuropeMENA

S. & C.

AmericaOther

ESP market share by revenue >

Others

Technological Leadership (1/3)

16

Borets was the first company to develop PMM motors for ESP applications in 2006

Borets has installed > 7000 PMMs (6000 PMM for ESPs and 1000 PMMs (low speed) for PCPs) worldwide, 3 times more

than the only competitor

PMM enhances electrical efficiency, with approximately 15-19% power saving according to trials by Apache in Texas,

GazPromNeft and TNK-BP in Russia

Due to higher efficiency PMM has higher reliability vs conventional motors

PMM technology is fundamental for Borets strategy in developing alternative (hybrid) artificial lift methods. PMM motors are

coupled with high speed wide range pumps or with non-ESP producing pump – e.g. PCP or plunger pumps

Permanent Magnet Motor (PMM)

17

Wear Resistant Wide Range (WR2)

Only Borets is able to use Metal Injection Moulding (“MIM”) for pump stages manufacturing.

Unlike in a casting process, MIM enables any geometrical form to be moulded with multiple

chemistry alloys. So MIM produced parts have superior abrasion and corrosion resistance vs

cast parts.

Pumps with MIM stages are suitable for harsh environments with high sand and high gas

applications, ideal for the U.S. shale oil market where conventional ESPs have low run lives.

Another important market is offshore applications where high speed pumps with wide operating

ranges and high abrasion resistance could be a solution for increasing the runlife of ESP

systems.

Borets is the only manufacturer using this process and already over 40 WR2 pumps have been

delivered to customers. Target to deliver 150 WR2 pumps by December 2018.

MIM process can be also used for manufacturing different components such as bearings. Borets

is implementing it as a part of vertical integration strategy and cost saving approach.

Technological Leadership (2/3)

18

Technological Leadership (3/3)

Linear Motor

Linear motor is PM motor for coupling with a plunger pump. This technology has numerous

advantages over conventional SRP technology – including applications at deviated, crooked

and horizontal wells, better controlled operation, less capex needed for launching a new well

and environmental advantages.

Borets is trialling Linear Motors with selected customers with a view to displacing SRPs with

more flexible down hole pumps, which replicate the rod pump action at greater depth and

without requiring vertical wells.

Linear motor has potential US$ 3 billion p.a. addressable market.

Client Name CountryCustomer

since

Share of Revenue

2016

Colombia 2011 3.6%

Kuwait 2015 1.5%

USA 2014 1.3%

Oman 2005 1.0%

Venezuela 2007 1.0%

USA 2008 0.8%

Italy 2012 0.1%

Global Presence and Strong Relationships with

Russian and International Oil Producers

Revenue Split by Countries 2016

Main Russian Clients Main International Clients

Borets has longstanding relationships with its clients in Russia and worldwide. Concentration risk in the Russian market is mitigated by capacity constraints of ESP producers

Total Revenue Split International Revenue Split1

Note:

1. Before intragroup eliminations and logistics & overheads

2. Source: CDU TEK

Client NameCustomer

since

Share of Revenue

2016

% of Oil Production

in Russia in 20162

2000 42.6% 38.6%

2003 5.8% 6.9%

1998 5.9% 15.2%

1998 5.9% 11.3%

2003 2.6% 2.7%

2005 1.3% 1.3%

19

International24%

Russia 76%

USA 30%

Colombia 16%

Egypt 17%

Serbia 9%

Canada 7%

Venezuela 6%

Kuwait 6%

Oman 4%

Brazil 3% Other 2%

Efficient Vertically Integrated Business Model

Borets is the world’s only vertically integrated ESP producer, supplying complete ESP systems and providing full range of relating services, which secures high profitability of the business

Key ServicesKey Products

20

Application engineering

Commissioning, start-up and monitoring

Consignment warehouse

Field service and technical support

Leasing

Performance / failure / mean time between failure (MTBF) analysis

Remote well monitoring and data acquisition

Repair and testing of ESP downhole and surface equipment

Sales, service and support for ESP, Hydraulic pumping systems

(HPS) and Variable frequency drives (VFD)

Spare parts ordering and supply services

Submersible / surface equipment and cables servicing, repair and

testing

Pumps

Gas handling units

Submersible motors

Motor seals and

intakes

Filters

Surface equipment

Sensors and gauges

Cable

29.5%

19.6%

5.0%

Borets Schlumberger Baker Hughes

EBITDA margin, 2016

*

**

4,000m

40m

*Adjusted EBITDA of US$5,464mm divided by revenue of US$27,810mm (source: Bloomberg)

**Adjusted EBITDA of US$493mm divided by revenue of US$9,841mm (source: company’s report)

Limited Dependence on the Oil Price Cycle due to

Focus on Operating Cost Segment

Exploration Well

Construction

Completions Production Abandonment

21

Operating

ExpenditureCapital Expenditure

E&P operating expenditure has remained resilient relative to capex in the current oil price environment

Globally, unit operating costs on average are generally low (<USD30/bbl), which ensures most producing fields remain economic even in a low oil

price environment

Significant proportion of Borets’ services in total revenue (2016: 46%) secures stable revenue stream

22

Western Standard of Corporate Governance monitored by EBRD and IFC: 2013 Corporate Governance Action

Plan required by EBRD completed in 2016

Environmental plan agreed with and monitored by EBRD

Impressive safety record: 0.007% fatality rate

Vertically integrated business model, enables Borets to:

Increase Real revenues by 6% CAGR 2011 – 2016;

Drive down Cost of Sales by 9% in 2016;

Increase 2016 Gross Profit Margin to 29.7% from 28.4% in 2015;

Drive down Operating costs by 22% in 2016*;

Increase 2016 Operating Margin to 11.8% from 7.1% in 2015;

Grow EBITDA margin every year from 2013 – 2015; and

Generate over US$ 110 mm in operating cash flow.

Operating Excellence

*Include Selling and marketing expenses, Administrative expenses and other operating expenses (income)

Robust Financial Performance Based on Growing

Installed Base

23

Borets have increased their Installed Base at 3% CAGR between 2007-16, with 13,000+ ESP units manufactured annually

Service Agreements have grown at 6% CAGR over the same period

Installed base provides Borets with a future annuity: ESPs have an average run life between 2-5 years: 18,000 Borets ESPs will need to be

replaced with new or refurbished ESPs in 2017

1214 15

17 18 18 18 1920 21

3537 38

40 41 42 43 43 43

47

0

10

20

30

40

50

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Under Service Agreements with Borets Borets Worldwide Installed Base

CAGR: 3%

# of ESP (‘000s)

CAGR: 6%

IV. Financial Overview

24

Growing “Real” Revenues with Higher

Contribution from Services

“Real” Revenues Grew 6% CAGR (2011-2016) Services Growing Share of Revenues

Total Revenues Comments

67% 69% 68% 66% 62%54%

33% 31% 32% 34% 38%46%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016

Product Sales Services (including rental)

25

583 566 579 510367 368

124 177 188210

154 114

707 743 767720

522482

$0

$200

$400

$600

$800

$1,000

2011 2012 2013 2014 2015 2016

Russia International

707 743 767 720

522 482

707776 816

865 910 953

$0

$200

$400

$600

$800

$1,000

$1,200

2011 2012 2013 2014 2015 2016

Based on actual rate Using rate of 29.3 RUB/USD (2011 average rate)

“Real” revenues (revenues based on constant RUB/USD exchange

rate) demonstrated consistent growth since 2011 on the back of

higher unit sales and growing installed based

‒ Nominal USD revenues declined in 2014-2016 due to Rouble

depreciation

International revenues accounted for 24% of Borets’ total sales in

2016

The share of more profitable and stable services segment increased

from low 30%s to 46%

(USDm)

(USDm)

Growing EBITDA Margin Underpinned by Cost

Control

4 Years of EBITDA Margin Growth (2013-2016)Comments

108

148131

144131

142

15%

20%17%

20%

25%

29%

0%

5%

10%

15%

20%

25%

30%

35%

$0

$40

$80

$120

$160

2011 2012 2013 2014 2015 2016

EBITDA EBITDA margin (%)

“Real” EBITDA Grew 90% (2013-2016) Operating Expenses Down 22% in 2016

EBITDA grew despite the Rouble depreciation with margins

increasing to 29.5% in 2016 due to:

– Tight cost control and improved supplier terms

– Rouble depreciation impact on international operations

– Growth in the service business and innovative products

Operating costs, including costs of sales (primarily raw materials,

wages and D&A), administrative expenses and other operating

expenses by declined by 40% in 2013-16

26

108148

131 144 131 142

108

156 151185

290 287

$0

$100

$200

$300

$400

2011 2012 2013 2014 2015 2016

Based on actual rate Using rate of 29.3 RUB/USD (2011 average rate)

(USDm)(USDm)

(USDm)

532 541 562 516374 339

103 102 111 111

95 83

23 17 3324

16 4

658 660 706651

485425

$0

$200

$400

$600

$800

$1,000

2011 2012 2013 2014 2015 2016

Selling & marketing and other

Administrative expenses

Cost of sales

Cost of sales structure

35%

19%

28%

62%

Other

Depreciation

Wages

Rawmaterials

Positive Free Cash Flow Generation

Capital Expenditure and Rental Investment Free Cash Flow

27

Operating Cash Flow Averages > US$90m p.a.

Notes:

1. EBITDA – Non-cash Adjustments – Management Fees – Interest – Taxes – Change in NWC

2. OCF / FCF cash conversion is defined as OCF / CFC divided by EBITDA

3. Rental business is high margin and spending is discretionary

4. Operating Cash Flow – Capex – Rental investment – R&D – Other

Comments

Stable cash flow generation, remaining steady through 2013-15

despite a 68% fall in Nominal Revenues:

OCF and FCF cash conversion increased to 72% and 18%

respectively

– Tight cost control increasing margins, helping to preserve

EBITDA despite fall in top-line growth

– Track record of adjusting capex to manage cash flows

– US$144m invested in Rental ESPs for future profitability

36

56

3222 3

26

34%37%

24%

15%

2%

18%

0%

20%

40%

$0

$40

$80

2011 2012 2013 2014 2015 2016

Free Cash Flow FCF Cash Conversion (%)

83106 103

9065

110

77%71% 78%

62%

50%

78%

0%

20%

40%

60%

80%

100%

$0

$40

$80

$120

2011 2012 2013 2014 2015 2016

Operating Cash Flow OCF Cash Conversion (%)

18 2131 28

19 1520 18 24

4533

71

$0

$20

$40

$60

$80

2011 2012 2013 2014 2015 2016

Capex Rental Investment

3

2

2

(USDm)

(USDm)

(USDm)

116 8533

339 342386 368

1.1

0.80.2

2.62.4

3.0

2.6

2010 2011 2012 2013 2014 2015 2016

Net Debt (USDm) Net Debt / EBITDA (x)

Debt Structure

28

Debt Structure

Debt Structure (USDm) As at

2016/12 2017/2

Senior Unsecured Notes 401 383

Bank Loan 0 23

Total financial debt 401 406

Cash and Cash Equivalents (33) (37)

Net financial debt 368 369

Leverage Dynamics

Comments

2013 Bond’s proceeds used to fund Weatherford share buyback

2017 Bond’s proceeds to be used to refinance 2013 bond

LT target leverage below 3.0x Net Debt/EBITDA