SARAS GROUP

2013-2017 Strategy and Business Plan

20 March 2013
 Agenda

Section 1 Overview page 3

Section 2 Saras Business Model page 10

Section 3 Group Strategy and Business Plan page 19

Section 4 Operational Excellence – “Project Focus” page 30

Section 5 Further Investment Opportunities page 40

Section 6 Disclaimer page 46

2
Section 1

Overview

3
 EU refining as an essential piece of the “oil value chain”

• Refining is an essential part of

crude oil value chain

• It is not reasonable to imagine

that Europe will become the only
region without a refining industry

• Europe has always been short

diesel, and it will continue to be
even more so, because IOCs are
exiting the EU refining sector

Source: JBC
4
New crude productions need EU refineries as a reliable output
• Crude oil production is expected to grow remarkably in the coming years (Iraq, Caspian Sea, Kazakhstan,
etc.), and these crude oils have a natural elective market: Europe and the Mediterranean Sea

• NOCs in those regions are well aware of the above trends, and they are looking with interest at the
European downstream sector, in order to secure reliable outputs for their growing production
Kazakhstan
Russia

Azeri Iran & Iraq

Source: JBC Research (Mar 2013) 5

 Additional Developments in crude availability in Europe

• The amazing increase in domestic US

and Canadian crude oil productions is
progressively displacing traditional
supply sources such as Nigeria, West
Africa, Algeria, Libya and in the future
probably also Venezuela creating further
opportunities for Med refiners

• On the “sour” crude supply in the MED

+35% in 48
we are currently missing Syria, Iran and
months
Sudan. Also, Kurdistan production levels
are temporarily reduced. When things
will normalize, we expect strong
improvements in the sour margin
Source: Argus (Feb2013)

• Russia, as stated by senior official recently in

Houston, has very ambitious plans to increase
production from existing fields and also through
the development of new Arctic frontiers. The
natural outlet for these crudes is Europe through
the new export port of Ust-Luga on the Baltic

Source: Argus (Feb2013)

6
 WTI vs. Brent, and LLS as a new benchmark

• Due to the “Cushing Syndrome”, towards the end of

2010, WTI discounts to Brent started to widen very
significantly

• In 2012 however, the outlook has started to change

(pipeline reversals, crude being moved by train, etc.)

• The above developments should progressively resolve

the congestion in Cushing and bring the differential
back to more normalized levels

Source: Argus

• The US Gulf sweet market will become progressively

more related to LLS than to WTI

• For years LLS has been a blend of offshore sweet

imports with domestic production

• Growing volumes of LLS have started to be available

on a regular basis (200kbd of Bakken flowing into St.
James; Eagle Ford moving into Louisiana; 650 kbd of
sweet imports still moving into US Gulf coast)

7
 Market Volatility as challenge but also a source of opportunities

• The roles of crude oil producers, traders and refiners are evolving: the large swings in prices, volatility and demand trends
require a proactive presence on the markets, balancing physical activities with trading opportunities

• Refiners can leverage on their natural “long” exposure to product crack spreads, creating additional value by trading around
hedging positions

• It becomes necessary to have a comprehensive perspective on margin evolution and its fundamentals

Source: Platts

8
 Size and Complexity as key competitive advantages

• Further consolidation in the EU refining sector is expected, and this will increase the differential between simple refining
configuration and highly complex and efficient players. Thanks to its ideal configuration, size, complexity and flexibility,
Saras demonstrated that its refinery can regularly over-perform the market, even in the most difficult scenarios

• As a matter of fact, Saras refinery is unique: taking into consideration that building new refineries is impossible in Europe,
Saras geographic location and its characteristics make it a very interesting partner for large crude oil producers (be it
Russian, FSU, Middle Eastern, African, etc.)

3rd Highest Nelson Complexity Index (9.2) among large EU refiners (i.e. distillation capacity > 200kbd)

9
Section 2

Saras Business Model

10
 Overview of Saras Businesses

1 2 3 4 5
Supply & Trading,
Refining Power Generation Wind Energy Other Activities
Marketing

• One of the largest • The largest liquid • ~150 crude • Wind farm with • Presence in
high complexity fuel gasification cargoes supplied capacity of 96 MW industrial
refineries in the plant in the world every year from in Ulassai engineering
Mediterranean (IGCC) wide range of crude (Sardinia) services for the
Sea • 575 MW of sources oil sector
• Pipeline for
• 300k barrels per installed power - • Marketing activities additional 200 MW – Environmental
day of refining conversion of in Italy and Spain wind parks monitoring and
capacity (about heavy refining • 11% wholesale protection,
residues into clean – Full authorisation
15% of Italy’s market share in industrial
gas for wind park of
refining capacity) Italy, 8% wholesale efficiency (Sartec,
97.5 MW in
• Electricity market share in 151 employees)
• 250 kb/d FCC production of Spain Romania (permit
equivalent capacity approximately upgrade to • Gas exploration
• 114 retail stations 120MW in activities
• More than 80% of 4.3 - 4.4 TWh in Spain
production is of progress) – Two site permits
• Attractive • Balanced and
medium and light regulated tariff for exploration
differentiated
distillates until 2021 in Sardinia
portfolio on sales,
not only a FOB (Eleonora
player and Igia)

11
 Operating Model

Supply & Trading

Production planning NewCo Refining company
Cargo Market

(selection of crude types)

Crude purchase

Asset backed trading

Crude oil inventory
ownership
(Industrial Supersite)
Refined oil products
inventory ownership

Focused on operational excellence and
Wholesale and Retail
technology exploitation

Contractual agreements with crude oil owners

Clear Ownership of Performances

Supply and Trading NewCo Refining Supersite

Site margin
Production

Trading margin
Operational availability

Wholesale margin
Fixed costs (maintenance, operating & personnel costs)

Inventory

Focus on Technology, Skills and Know-How

New Top management hired to lead the NewCo Refining Supersite, in order to energize and drive the change

12
 Commercially Driven Approach to Exploit Asset Potential

3 different Downstream Large

Ability to Integration
conversion integration to flexibility in
process with Power
cycles access logistics and
large variety Generation
optimise crude inland product
of crudes and Petchem
runs markets specs

13
Adapting to Changing Environment Across the Value Chain

Positioning Across Refining Value Chain

Crude Supply Processing Sales

-
• Three different
• FOB cargo market
conversion cycles
• DEL cargo market
Today • Crude slate flexibility • Commercially driven

Complexity level
• Saras integrated
runs
downstream system
• Inventory management

+ + +

• Cash & Carry • Arbitrage trading

Tomorrow • Crude trading • Dynamic forward • Logistical positioning
trading for inland access

Continuously Investigating Further Opportunities

14
Main Product Outflow Routes from Saras Refinery

Inland Sardinia
Market via
Truck:
~1.1 MM ton IV

Integrated super-site flows

Integrated Pipeline flow with

flows with IGCC Petchem:
I ~1.1 MM ton ~0.5 MM ton
IIa

1.4 MM ton
Power -0.9 MM ton
to grid IIb

IIIa IIIb
Italian system FOB sales Trading to
Cargo to Saras FOB &
1.5 MM ton 6.4 MM ton optimise
Wholesale / Delivered
Spanish system (1) Retail System Cargo DEL sales portfolio
0.7 MM ton ~2.2 MM ton Market 3.0 MM ton 0.4 MM ton
~9.4 MM ton

Well Integrated and Diversified Product Flows

Source: Saras 2012 data
NB: Total Spanish sales equal to 1.6 MM ton
15
Saras Strong Positions Towards Inland Markets

Spanish system Italian system

4 2 1.5 1.5
Local supply
2.5
2 1.8 1.6 1 0.8

1.8 1.3 0.9

0 0
2010 2011 2012 2010 2011 2012

Visco
Sigemi
Decal

Ravenna
Total sales
Arcola
1.6 MM ton
Livorno
Local
Supply Civitav.
Barcelona
0.9
Palma Torre
Cartagena

0.7 MM ton 1.5 MM ton

Source: Saras 2012 data

16
 2015 Supply & Demand in Italy

A North West D North East

D
2 0
-0.8
2.0 -1 -2.1
Mt 0 Mt
-1.6 A -2
-2 -3
Gasoil Gasoline Gasoil Gasoline

E
B Tuscany B E Adriatic Coast

0,5 0 -0.6
0.4 -1
0,0 Mt -2.4
Mt -0,5 -0.9 C -2
-1,0 -3
Gasoil Gasoline F Gasoil Gasoline

C Lazio F Campania

0 0
-1.1 --0.5
-3.6 Mt -1 -1.8
Mt -2
Oil Refinery -2
-4
Gasoil Gasoline Third party Oil Depots Gasoil Gasoline

Saras Group Oil Depots

Note: Balance based on 2015 estimated demand vs. expected supply (incl. EST development in SdB)
Source: Wood Mackenzie, UP

From Own & Third-party Depots, Saras can ideally exploit domestic imbalances
17
 2015 Supply & Demand Europe

Diesel/gasoli deficit in Europe is expected to continue growing out

to 2025, while gasoline and fuel oil will remain oversupplied

NEW and mature economies in the MED have limited potential

for demand growth, due to market saturation and efficiency
improvements

Middle East (Turkey in particular), North Africa and C&EE have a Source: Wood Mackenzie

strong growth potential, because their current per-capita oil use is

low. Once economic recovery starts to filter down to consumers’
disposable incomes, demand will grow strongly

kb/d
kb/d

Source: JBC Energy

Saras central position in MED is ideal to supply North Africa & Middle East
18
Section 3

Group Strategy and Business Plan

19
 Saras Group Business Plan 2013 – 2017

• Key assumptions behind the scenarios considered

• Evolution of Saras’ refining and power generation segments

• Improvements coming from new “Project Focus” initiatives

• Consolidated forecast financials on a “pro-forma” basis(1)

1. “Pro-forma” means that turnarounds’ effects have been annualised on a linear basis in the business plan horizon, both in terms of maintenance costs and reduced production

20
 Business Plan Scenario – Brent Price

• Brent price evolution based on EMC Forecasts (dated Nov. 2012)

– Drop during 2013 – 2014 to 105 $/bbl (CAGR -3% nominal, -5% real)
– Growing trend from 2014 to 2017 up to 112 $/bbl (CAGR +2% nominal, +0% real)

Historicals Business Plan

Brent, $/bbl
150
-3% +2%

111.3 111.6 110.0 113.0 112.0

107.8 105.0
105.7 100.9 103.7 104.4
97.0 101.4
100

79.5
72.6
65.4
61.5

50

0
2006
2006 2007
2007 2008
2008 2009
2009 2010
2010 2011
2011 2012
2012 2013 2014 2015 2016 2017

Nominal Brent Real Brent(1)

1. Real 2012 21
 Business Plan Scenario – Refinery (I / III)

• Refining margin forecast from

2013 to 2017 based on EMC
Refining Margin – Historical Trend
Forecast report dated Nov’12 Margin ($/bbl)
Avg. Premium vs. EMC
– EMC estimates are the latest 12
equal to +2.4$/bbl:
publicly available and Saras 10 8.7
7.1 7.3
has historically reported the 8 6.2
5.6 4.6
comparison between its own 6
margin and EMC benchmark 4 2.6 2.8 2.1
+2.4
4.5 4.7 1.8 1.8
• A premium of +2.4 $/bbl has 2 3.3 3.2 2.2
2.1 2.8
been applied to the EMC 0
0.9
0.7 0.6 Avg.
margin to derive Saras margin -2 (1.1)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
– Equal to the average
premium realised by Saras Saras EMC
vs. EMC from 2003 to 2012
• EMC Refining margin is
expected to increase to Refining Margin – Business Plan
3.1 $/bbl in 2017 from
Margin ($/bbl)
1.2$/bbl in 2013 (nominal 5.7
terms) 6.0 5.3 5.4 5.2
5.0 5.0
4.4 4.2
• Saras refining margin is 3.6
4.0 3.6 3.1
estimated to be 3.6$/bbl in 2.8 2.9
2013 vs. 2.0
2.0 1.2 2.8
– 5.7$/bbl nominal in 2017 2.6 2.6
(CAGR +12%) 1.9
1.2
0.0
– 5.2$/bbl real in 2017
2013 2014 2015 2016 2017
(CAGR +10%)
Saras Nominal Saras Real 2012 EMC Nominal EMC Real 2012

22
 Business Plan Scenario – Refinery (II / III)

• Average refinery runs from the Refinery Runs

period 2006-2012 were equal to
14.2 MM tons Historicals Business Plan
• 2013 throughput in line with MM ton
historical average (at 14.3 MM 16 15.5 Throughput in
tons) and afterwards it will 2013 equal to
increase up to 15.0 Mt in 2014, 15 14.5 14.6
14.3 14.3 MM ton
due to MHC2 revamping (+0.7 14.0 Avg.
MM tons) 14 13.3 14.2
13.3 2014 – 2017
13 Average
15 MM ton
12
2006 2007 2008 2009 2010 2011 2012

• The positive impact of Project

Focus initiatives implemented Fixed Costs
in 2012 has been included in
the Business Plan Historicals Business Plan

• Fixed costs are assumed to € MM

250 237 229 236 219
grow at inflation post 2014 221
212 Avg.
186 220
200
Fixed costs in
150 2013 equal to
100 €215 MM/y
50

0
2006 2007 2008 2009 2010 2011 2012

23
 Business Plan Scenario – Refinery (III / III)

• The business plan assumes no Capex

additional growth Capex from
2013 onwards Historicals Business Plan
– In 2013, €30 MM Capex for Capex (€ MM)
250.0 243.5
MHC2 revamping

Average 2007-
• Maintenance and HSE Capex 200.0 94.7 2012 capex for
179.3 HSE and to
amounts to €80 MM(1) per annum 167.7 maintain capacity Completion of MHC2
from 2013 to 2017 (on average) revamping
equal to €95 MM
150.0 32.0 51.1

• Projected Capex incorporate the 110

optimisation of maintenance / 97.0
100.0 90.0 84.9 86.6
30.0 81.6 83.2
revamping cycles resulting from
29.4
Project Focus implementation 148.8 63.1
135.7 128.2 46.4
50.0 18.3
80.0 81.6 83.2 84.9 86.6
67.6
• Maintenance Capex assumed to 43.6 44.8
grow equal to inflation during the
0.0
business plan period
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
HSE and Maint. Capacity Growth

No Additional Growth Investments are Required in the Business Plan Horizon as

Historical Investments Have Made Saras Refinery Competitive for the Coming Years

1. Real 2013 24
 Business Plan Scenario – IGCC (I / II)

• Electricity sale price assumed CIP6 Tariff (Electricity Sale Price)

equal to CIP6 power tariff
€/MWh
• Prices calculated on the basis 150
of the assumed composition of 123.1 120.7 120.3 121.2 124.6 126.5
115.7 114.2 115.2 114.6
the reference basket as
forecasted by EMC (Brent, 100
Gasoil, Low Sulphur Fuel Oil)

50

0
2013 2014 2015 2016 2017
CIP6 Nominal CIP6 Real(1)

• IGCC Fixed Costs assumed to Fixed Costs

grow only by inflation from
2014 onwards, with 2013 base Historicals Business Plan
level of €92 MM reflecting the
improvements achieved € MM
through Project Focus 120
104 104 102 103 103
94 93 Avg.
100
101 Fixed costs
80 equal to
60
€92 MM in
2013
40
20
0
2006 2007 2008 2009 2010 2011 2012

1. Real 2012 25
 Business Plan Scenario – IGCC (II / II)

• The business plan assumes no

additional growth Capex from Capex
2012 onwards
Historicals Business Plan
Capex (€ MM)
• Maintenance and HSE Capex 35
amounts to €15 MM(1) per
annum from 2013 to 2017 (on 31.2
average)
30
Average 2007-2012
26.5
equal to €18.2 MM
• The amount of projected Capex
incorporates the optimisation of 25
maintenance/revamping cycles
resulting from Project Focus 20.1
implementation 20

15.6 15.9 16.2

15.3
• Maintenance Capex assumed 15.0
15
to grow equal to inflation over
the business plan period 12.4
10.3
8.7
10

0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1. Real 2013 26
 Business Plan Scenario – Marketing, Wind and Gas Exploration

Marketing:
• Italy: EBITDA improvements due to Project Focus initiatives (e.g. entry to bunkering market)
• Spain: Saras will continue to implement cost reduction initiatives, as well as the rationalisation of its client portfolio and of the
working capital. Moreover, during 2013 the Group will complete the restructuring programme started towards the end of 2012,
with the objective to achieve structural improvements to EBITDA of approx. €10 MM per year

Wind:
• Limited capital expenditure on the wind business during the business plan horizon. Various monetisation alternatives are
currently under review, in particular with regards to new projects in the pipeline.

Gas Exploration:
• the Group presented in mid March 2013 the Environmental Assessment Procedure (V.I.A.), which stems from the permitting
procedure required to start drilling activities in an area located in Sardinia (“Eleonora” project). According to geological
estimates, it is expected to achieve an annual production of 70 up to 170 million cubic meters of natural gas, for a production
period of more than 20 years.

27
Overview of New Initiatives Included in the Business Plan

Business Plan Impact

on EBITDA (€ MM)
2013 2014 2015

Supply & Trading

1 DFT 2 5 5

2
19 Crude Trading 3 5 5

3 Cash & Carry 1 2 2

4 Bunker 1 3 3

5 Wholesale 1 1 2

6 Direct Inflows
Efficiency

4 7 7
Energy

7 EE Incentives 2 5 5
8 EE Investments 4 10 10
9 Alkylation 4 7 7
Product Yield

10 Gasoline Density 3 3 3

11 ZSM5 FCC 2 5 5

12 Gasoline HDS 1 2 2

13 Outlet Flow-metres 2 2 2

14 Slurry Filter - - 4

30 57 62

28
 “Pro-forma” Consolidated Economics

• Group EBITDA
increases by approx.
Comparable EBITDA(1)
~€185 MM from 2013 to € MM
2015, of which ~€175 750 591 614
502 583
MM from refining 600 399
segment (IGCC EBITDA 450
reported is assumed flat) 300
150
0
2013 2014 2015 2016 2017
• Group EBITDA remains
flat from 2015 to 2017
(+€34 MM on a nominal
basis) driven by
constant EMC refining
margins

Capex
• Working Capital will be
rather volatile, as usual, € MM
due also to possible 160 101
126 97 99 103
changes in commodity 120
prices 80
40
0
2013 2014 2015 2016 2017

1. Consolidation assumes IGCC EBITDA reported

29
Section 4

Operational Excellence – “Project Focus”

30
 Saras Launched the Operational Excellence Program 3 Years Ago

A Project Conceived …Structured in Three

to Pursue Excellence… Waves of Intervention…
Wave 1 • New organisation of the refinery
(2010) • Focus on Asset Management
As an independent refiner, Saras • Energy savings (quick wins)
recognised that one of the main • Product yield boost for 1st tier units
“Start the Change”
levers of value creation was
pursuing operational excellence
Wave 2 • Labor cost and HR restructuring
(2011) • Reduction of refinery fixed costs
• Giveaways reduction
“Embed the Change”
Despite satisfactory operational
performance, Saras deemed that Wave 3 • Commercial activities
there was additional room to (2012) • Supply and trading
improve efficiency • Extension of product yield activities to 2nd tier units
“Enlarge the Change”

Strong Commitment by Both Saras Management and Employees

• More than 25 workgroups and 120-150 resources directly involved

So far Achieved Significant Results, More Yet to Come

31
Three Main Areas of Impact of Current Initiatives

Summary of Main Initiatives

Supply & Trading

– Reduction of demurrage, optimisation of fleet costs, inventory management, etc.

Refining Margin Energy Efficiency

Enhancement – Reduction of flare losses, reduction of fuel and steam consumption, etc.
Product Yield
– Yield optimisation on almost all refinery units, from toppings to HDS units

• Maintenance cost optimisation

Cost Reduction • Reduction of utilities costs
• Fixed cost optimisation (people related expenses and discretionary costs)

WC Reduction • Inventory reduction

32
 Initiative Examples: Reduction of Flare Losses and Fixed Costs

Reduction of Flare Losses Reduction of Fixed Costs

Flare Losses (% of Total Processing) Fixed Costs (EUR MM)

0,4 300

250
4 32 30
0,3
200
Run Rate Flare
Losses: 0.09% of 237 229 236
212 219 221
0,2 150 186
Total Processing
0,37
0,34
100
0,1 2006 2007 2008 2009 2010 2011 2012
0,19
Base growth (inflation from 2006 figures)
0,10 0,10 0,09
0,07 Savings (Focus)
0,0 Fixed Costs (Annual Report)
Baseline 2010 1H 2010 2H 2011 1H 2011 2H 2012 1H 2012 2H
>2010

Economic Impact: ~€13MM Saving per year Impact of cost saving initiatives offsets 6
(~40kton Fuel Gas Recovery) years of inflation

33
Initiative Examples: Reduction of Oil Inventories

Reduction in Total Oil Inventories

-132kt
kton
(-€100 MM)
1.500 1.382
71 1.250
1.200 76
520
454
900

600 312
327

300
479 393

0
Avg 2011 Avg 2012
Crude Oils Intermediates Finished Products Others

Three Main Actions taken to Reduce Inventories

• Revision of scheduling and planning processes

• Implementation of tools to monitor and forecast inventory levels,
to take timely corrective actions
• Optimisation of tank allocation

34
 New Focus Initiatives Planned in 2012 Currently Being Implemented
Have approx. €60-€80 MM/y EBITDA Impact Target by 2015

• Positioning in Asset Backed Trading to leverage

Advanced refinery flexibility and price volatility, e.g.
Trading – Exploitation of crack and crude volatilities
(€12– €21 MM/y) – Crude trading
Supply &
Trading
(€17 – €27 MM/y) Commercial • Access and development of inland market; entry
into specialty segments
Business
Development – Further development of wholesale market
(€5 – €6 MM/y) – Bunker
New Focus
Initiatives
• Improvement of refinery EII (Energy Intensity
(€62 – €82 MM/y)
Energy Index) thanks to:
Efficiency – Optimisation of thermal integration between
(€22 – €26 MM/y) units
– Other minor investments
Refining
(€45 – €55 MM/y) • Further yield improvements, e.g.
Product Yield – composition of gasoline pool
(€23 – €29 MM/y) – LSFO quality

Business Plan Includes Conservative Estimates

for the Above Initiatives (i.e. the Lower-End of the Identified Range)
35
 Advanced Trading: €12 – €21 MM/y Additional EBITDA
Thanks to Implementation of 3 Main Asset Backed Trading Initiatives
Benefits(1)
(€ MM/y)

1
DFT
Volatility trading strategy on crack forward curves
(Dynamic
• Trading of short paper positions exploiting refinery long position as 5-8
Forward
natural hedge
Trading)

2
Crude trading to exploit crude differential volatility
Crude
• Increased presence on crude market and visibility on forward netback 5-9
Trading
• Fully exploit production flexibility of the refinery

3
Utilise storage capacity – became available through inventory
optimisation initiative – to take advantage of contango (and
(Reverse)
backwardation) play 2-4
Cash & Carry
• Value extraction from forward price curves
• Leveraging on availability of logistics / tanks in refinery / depots

~12 – 21

Additional Resources and Capabilities are Required to Support the Current Organisation
in Order to Achieve Full Potential Benefits
1. EBITDA improvement by 2015
36
 Commercial Business Development: ~€5 – €6 MM/y Incremental EBITDA
to be Achieved Through Bunker and Wholesale Growth

Benefits(1)
(€ MM/y)

4
Entry to the bunker segment with the purchase, blending and
servicing of bunker oil from Saras logistic sites
Bunker 3-4
• Partnership on Arcola and production and delivery integration with
Sarroch

Market share growth in Italian wholesale business

Wholesale ~2
through supply & servicing strategies

~5 – 6

1. EBITDA improvement by 2015

37
 Refinery: ~€22 – €26 MM/y of Incremental EBITDA
As a Function of 3 Main Energy Efficiency Initiatives

Benefits(1)
(€ MM/y)

6
Maximisation of Direct Inflows Between Units to Reduce Fuel
Direct Inflows Consumption 7-9
• Review of operational processes and debottlenecking

Optimisation of EE Incentives
EE Incentives ~5
• Review of current practices, identification of new opportunities

8
Completion of initiative started in 2012 and launch of further small
EE investments in 2013
10 - 12
Investments • Reducing refinery energy consumption and restoring steam optimal
balance

~22 – 26

1. EBITDA improvement by 2015

38
 Refinery: ~€23 – €29 MM/y Incremental EBITDA
As a Result of 6 Main Product Yield Initiatives

Benefits(1)
(€ MM/y)

9
Optimisation of alkylation unit
Alkylation ~7
• to exploit high alkylate – butane differential

10 Gasoline
Reduction of gasoline density
Density 3-4
• through optimisation of use of C4 blending
(C4 blending)

11 Improvement of cracking gasoline octane

ZSM5 FCC 5-8
• thanks to ZSM5 additive

12 Gasoline Reducing octane loss in gasoline hydro-desulphuring unit

HDS • reduction of HDS duty, revision of mercaptane specification on MCN 2-3
(U800) desulphured stream and technical revision of HDS turndown

13 Outlet
Change in outlet flow-meters calibration policy 2-3
Flow-Metres

14 Improvement in FCC slurry quality

Slurry Filter ~4
• through introduction of mechanical filter

~23 – 29

1. EBITDA improvement by 2015

39
Section 5

Further Investment Opportunities

40
 Energy Saving FCC Initiatives – Overview

• Substitution of FCC gas and blower compressors based on steam power

with new electricity powered equipment
Description
• “Dismantling” of current boiler and steam turbine present in the power
station

• Saving approx. 60 kton/y of fuel with a higher consumption of electricity of

approx.195 GWh
Rationale
• Saving on maintenance Capex on the power station
• Reduced environmental impact (reduced consumption of fuel)

• Run rate benefits of approx. €17 MM /y at EBITDA level

• Gross Capex of approx. €65 MM, with Capex savings of approx. €31 MM(1)
Preliminary Economics
• IRR = 25 %
• Discounted payback of 6.5 years

Risks Analysis • Economics dependant on differential between fuel and electricity costs

1. Of which €15 MM in 2018 (beyond business plan time frame) 41

 Energy Saving FCC Initiatives – Economics
Based on current differential between fuel and electricity costs

Business Plan Beyond Business Plan Horizon

€ MM 18 19
17 18 18

10
EBITDA

2013 2014 2015 2016 2017 2018 2019 2020

IRR = 25%
€ MM
€31 MM
16 Capex Savings 15

Capex
-30 €65 MM
-15
-20 Capex
2013 2014 2015 2016 2017 2018 2019 2020

€ MM 28
Discounted
Payback =
12 12 12 13
Free Cash
6.5 years
Flow
-8
-14
-20

2013 2014 2015 2016 2017 2018 2019 2020

42
 Other Investment Options: Visbreaking and Steam Reformer

An improvement in current differential between heavy and light crudes could make
investments that increase refinery flexibility to process heavy crudes an attractive
opportunity

Implementation could progress leveraging on earlier activities

1. Revamping of Visbreaking with a new TAR stripping unit, improving operating

efficiency of Vacuum 2 (avoiding stripping), and optimising IGCC conversion capacity
– Investment estimate of €170 MM

2. New hydrogen unit (Steam Reformer) of up to 35 kNm3/h hydrogen production, to fully

exploit revamping of MHC2 potential and to minimise the negative effect of turn-arounds
and slowdowns of hydrogen producers (CCR, IGCC, Versalis) on diesel production 10ppm
– Investment estimate of €60 MM

43
 Assessment of Long Term Value Creation with IGCC

IGCC used as today

Favourable Economics: Specifically due to large availability of "cheap" heavy crude oils (and probably
also more “sour”), with wide “heavy-light” price differentials and consequently high refining margins, and
macro environment not depressing electricity prices

Potential Alternative Uses Thanks to IGCC Flexibility

Hydrogen Production and Exploit Opportunities in Low Waste/Biomass

Power Supply for Refinery Sulphur Fuel Oil Market to Energy

1-2 trains devoted to
Hydrogen production and
power supply to Sarroch
site...
... allowing a step
improvement of energy
efficiency of the site with a
limited investment
Usage of LS crude oil to
produce Low Sulphur Fuel
Oil…
… exploiting narrow “LSFO-
Crude oil” differentials
In this option, 1 IGCC train
should be shut down, without
any relevant investment
1-2 trains can co-process
different types of
feedstock...
... such as biomass and
waste (together with TAR)

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IGCC plant allows Saras to take advantage of Mid-Term scenario for HSFO

IGCC simplified block diagram

SynGas Steam to
TAR refinery
SynGas
Gasification Gas Steam
purification &
Units turbine turbine
H2 separation
Oxygen Power to
Hydrogen grid
to refinery

• The value of TAR is a function of its viscosity, the price of GO, and the price of HSFO
Ratio HSFO/GO [%]
70%

60%

50%

40%

30%
2000 2001 2002 2003 2004 2005 2006 20 07 2008 2009 2010 20 11 2012

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Section 6

Disclaimer

46
 Disclaimer

Certain statements contained in this presentation are based

on the belief of the Company, as well as factual assumptions
made by any information available to the Company. In
particular, forward-looking statements concerning the
Company’s future results of operations, financial condition,
business strategies, plans and objectives, are forecasts and
quantitative targets that involve known and unknown risks,
uncertainties and other important factors that could cause
the actual results and condition of the Company to differ
materially from that expressed by such statements

47