Pertamina Energy Outlook 2015

Pertamina: the backbone of

national energy security
By :

Ahmad Bambang
Director,
PT Pertamina (Persero)

Jakarta, 3-4 December 2014

PT Pertamina (Persero)
Jln. Medan Merdeka Timur No.1A Jakarta 10110
CONFIDENTIAL AND PROPRIETARY
Telp (62-21) 381 5111 Fax (62-21) 384 6865
Any use of this material without specific permission of Pertamina is strictly prohibited
http://www.pertamina.com

Agenda

Pertaminas Energy Policy & Strategy

Pertaminas Business Overview

4
5
6

Upstream Business

Midstream Business
Downstream Business

New & Renewable Energy Business

Page 2

Agenda

Pertaminas Energy Policy & Strategy

Pertaminas Business Overview

4
5
6

Upstream Business

Midstream Business
Downstream Business

New & Renewable Energy Business

Page 3

Pertaminas Corporate Vision, Mission and Values

Challenge to synchronize national energy security and energy commercialization

Vision

To be a world class national energy company

Mission

To carry out integrated core business in oil, gas, & renewables

based on strong commercial principles

Values

Clean, Competitive, Confident, Customer Focus, Commercial,

Capable

Page 4

Pertaminas Aspiration is To Be a Fortune 100 Asian Energy Champion by 2025

Aligned with national mission
Asian Energy Champion
Fortune 100 position (Revenue ~$200b USD, EBITDA ~$40b USD)
Leadership in existing core

Growth in new businesses

Increase efficiency in PSO

E&P
Leading Asian NOC: 2.2
mmboepd production with
domestic leadership (50%)
and intl foot-print (~30% of
own prodn.)

PetChem
Largest petchem player in
Indonesia with 35% market
share, high margins through
integration

Oil products
Maintain position of strength
with 60% market share; new
service model through New
pasti pas and NFR

Midstream gas
Integrated gas champion with
trans-Sumatera and transJawa gas infra-structure

Coal
Leader in alternate technology
(e.g. CBM, UCG) while
maximizing coal production

LPG
Optimize supply chain and
infrastructure

Refining
Economically competitive
refining capacity; Top quartile
operating performance

Biofuels
Serving mandate of 20%
blend; upstream presence to
reduce losses and supply risk

Industrial fuels & lubes

Maintain position of strength
with over 50% market share,
while sustaining profitability

Shipping
Support own supply chain and
also build third party service
model

Power
One of the largest Indonesian
IPP player with ~ 3-5 GW
capacity

Trading
Optimize supply chain and
improve profitability

Project & Technology Center: Technology leader on CBM, Geothermal, EOR

and deepwater; Strong project executor with delivery on time and within budget
Organization & Capability: Accountability and delivery; Employer of choice to attract and retain best talent

Page 5

FORTUNE 500 : Pertamina is Ranked 122

A reflection to be a global company
Total Revenue ( Billion USD )

67,30

70,92

71,10

48,65

No.

Company

Revenues
($b)

Royal Dutch Shell

481,7

Wal-Mart Stores

469,2

Exxon Mobil

449,9

Sinopec Group

428,2

China National
Petroleum

408,6

..

75

Petronas

94,3

...

122

PERTAMINA

70,9

135

Unilever

66,0

144

ConocoPhillips

63,4

38,87

2009

2010

2011

2012

2013

Net Profit ( Billion USD )

2,76

3,06

2,40
1,72

2009

1,86

2010

2011

2012

2013

In 2013, Pertamina was ranked 123 on the Fortune Global 500.

The only and the first time Indonesian company to be included in the Fortune Global 500 listing.
Page 6

Indonesias Energy Overview

Indonesias economy will demand more energy while entering a resource-intensive stage
of development
Energy consumption per capita
Million BTU per capita, 1970-2010
250

200

USA

Indonesia 2030
projected

150

Australia

South Korea

Germany
France

100

Historical range
for energy
consumption
evolution

UK

Japan
50

Singapore

China

Thailand
India

0
0

5000

10000

15000

20000

25000

30000

35000

40000

45000

GDP per capita

Real $US PPP/Person

SOURCE: IEA; Global Insight; McKinsey

Page 7

Agenda

Pertaminas Energy Policy & Strategy

Pertaminas Business Overview

4
5
6

Upstream Business

Midstream Business
Downstream Business

New & Renewable Energy Business

Page 8

Performance Highlight
Pertamina securing the national interest while enhancing the corporate value
Sales & Other Operating
Revenues

Million USD

EBITDA

Million USD
67.297

70.924 71.102

201
1

201
2

201
3

70,6

71,8

73,6

200
9

201
0

201
1

201
2

201
3

502,1

Source: Pertaminas Annual Report

200
9

67,1

67,5

67,7

68,8

200
9

201
0

201
1

201
2

201
3

1.811
1.547

201
0

201
1

201
2

201
3

200
9

201
0

201
1

201
2

201
3

Fuel Production Volume

(10 Main Products)

BSCF
70,0

68,1

2.405

Gas Production

MMBO

200
9

2.766

4.396

Crude Oil Production

64,4

3.067

6.057

3.541

201
0

Million Ton

6.657

47.559
35.135

Geothermal Production

Million USD

5.592

200
9

Net Income

Juta BBL

532,9

201
0

558,6

201
1

563,2 557,7

201
2

201
3

249,9

200
9

Fuel Product Sales

(10 Main Products)

Juta KL

235,8

237,0

201
0

201
1

238,8 239,0

201
2

201
3

Page 9

58,5

59,8

200
9

201
0

64,6

64,9

65,4

201
1

201
2

201
3

Agenda

Pertaminas Energy Policy & Strategy

Pertaminas Business Overview

4
5
5

Upstream Business

Midstream Business
Downstream Business

New & Renewable Energy Business

Page 10

Upstream Production Highlight

In order to increase production, Pertamina focus on M&A, exploration, development, and
also development of unconventional energy as an alternative to fulfill the gap between
energy demand and conventional energy production

~2,200

New exploration capex will be

~15 % of capex, relative to
~20% for Statoil and ~60% for
Petrobras

600

~200
~150

Pertamina
oil and gas
production,
2025
Kbpd

Source: McKinsey

~900

~800

~100

Existing &
own acreage
Exploration

EOR

~300
~50

Total Existing IP increase1

fields

Other
licenses2

Domestic
exploration

CBM &
Shale Gas

Page 11

Intl
expansion3

Total

Wilayah Kerja Migas Domestik Eksplorasi & Produksi

Page 12

Wilayah Kerja Migas Domestik Eksplorasi & Produksi

PT Pertamina Hulu Energi

Page 13

Wilayah Kerja Migas Domestik Eksplorasi & Produksi

PT Pertamina EP Cepu

PT Pertamina EP Cepu Alas Dara Kemuning

Page 14

Expanding upstream operation globally

Pertamina presence in around 8 countries.
International Asset

Under exploration

Under development

Under production

10 working areas

Block West
Qurna 1
(10%)

Block
Menzel Lejmet (65%)
El Merk
Ourhoud
Algeria

ALGERIA

Block 10 & 11.2

Vietnam
(10%)

IRAQ

VIETNAM
MALAYSIA

Page 15

Block SK-305
Malaysia
(30%)

Wilayah Kerja Migas Luar Negeri Eksplorasi & Produksi

Conocophillip Algeria

PT Pertamina Hulu Energi

(PT Pertamina Internasional E&P

(Irak West Qurna 1)

Algeria & Irak are onshore production

Blok Vietnam & SK-305 areOffshore;
vietnam under eksploration & SK 305
under ekspolartion/development.

Page 16

Agenda

Pertaminas Energy Policy & Strategy

Pertaminas Business Overview

4
5
6

Upstream Business

Gas Business
Downstream Business

New & Renewable Energy Business

Page 17

Gas Infrastructure
Connecting supply and demand through Integrated Gas Infrastructure
PT Arun NGL
Design Capacity
No. of Train

PT Badak NGL
Design Capacity
No. of Train

: 12.5 MTPA
: 6 Trains

: 22.5 MTPA
: 8 Trains

Eksisting

Daerah Surplus Gas

Rencana

Daerah Defisit Gas

JARGAS:

Arun LNG Receiving & Regas. Terminal

Design Capacity
: 3 MTPA (storage 12MTPA)
Main Customer
: PLN & Local Industries
Akan diintegrasikan dengan Pipa Arun Belawan

Existing
In progress
Rencana

Lhokseumawe

Tarakan
Bulungan
Bontang

Jambi
Palembang
Prabumulih

Donggi Senoro LNG Plant

Design Capacity
: 2 MTPA
Project Owner
: Mitsubishi & KOGAS (59.9%),
Pertamina (29%),
Medco (11.1%)

Ogan Hilir
Bekasi,
Cirebon, Subang
Depok,
Semarang
Bogor

Sidoarjo,
Surabaya

Blora
FSRU Nusantara Regas
Design Capacity
Project Owner

: 3 MTPA
: PTM (60%),PGN (40%)

FSRU Jawa Tengah

Design Capacity
Project Owner

: 3 MTPA
: Pertamina (100%)

Land Base Jabar

Design Capacity
Project Owner

: 2 MTPA
: Pertamina (100%)

FSRU Cilacap
Design Capacity
Project Owner

: 1,5 MTPA
: Pertamina (100%)

Pipa Gresik Semarang

Project Owner

: Pertamina (100%)

Pipa Tegalgede Muarakarang

Project Owner
: Pertamina (100%)

Page 18

CNG Roadmap
Another energy conversion program by developing CNG infrastructure for transport sector
CNG Infrastructure Development Plan
Conversion program will be implemented gradually in several
big cities in Indonesia.

Pertamina has been assigned the Government to

develop and operate CNG stations to support the
conversion program

unit cumulative

65

2015

75

2016

85

2017

97

2018

Note: number of existing CNG station until 2014: 37 units

111

111 CNG
Station in
2019

2019

Page 19

Development of City Gas for households

Lhokseumawe

Tarakan
Bulungan

Sorong

Bontang

Jambi
Palembang
Ogan Hilir
Prabumulih
Subang
Bekasi,
Cirebon,
Depok,
Bogor

Semarang
Blora

Sidoarjo,
Surabaya

Sengkang

Buleleng
Existing city gas
In progress city gas
Next city gas development

Government (Ditjen Migas) has developed City Gas in 16 cities (a total of 57.857 households)
City gas development is done in 2 cities (2009), 4 cities (2010), 5 cities (2011), 5 cities (2012)
For the household sector , the Government will allocate 0.5 MMSCFD of gas in each city.
The Government has appointed PT Pertamina (Persero) to operate city gas, currently in 3 cities (Jambi,
Prabumulih, and Sengkang)
Initiation Jargas project can be used as a stimulus for further development of the pipeline in order to connect
other areas not reached by the gas infrastructure (including to industrial areas)
Page 20

LNG For Vehicle project in Java

Expanding Integrated Gas Value Chain & Maximizing Downstream Opportunities
Project location and Onshore LNG Facilities issues

Onshore Storage Tank:

Jakarta/Merak
Semarang
Tuban/Tanjung wangi
Cilacap
LNG Refueling Station:
Jakarta
Cirebon
Semarang
Surabaya
LNG for Vehicle potential partner

LNG Refueling
Station*

Successful Pilot Project LNG Vehicle PT Badak NGL

LNG Mobile
Refueling Unit

Fuel conversion from

diesel to dual fuel
August 2012
Location : Pilot project at
PT Badak NGL, Bontang
East Kalimantan

LNG ISO Tank

Trailer

LNG demand profile

Gas Supply (x1000 metric ton)

LNG for Vehicle

Java

2013

2014

2015

2016-2019

2020-2022

0.113

1.239

4.617

69.585

139.171

*) LNG Refueling Station: Storage tank, dispenser, facilities (cryogenic pump, piping facilities, etc

Page 21

LNG For Mining

Expanding Integrated Gas Value Chain & Maximizing Downstream Opportunities
LNG supply scheme

Pilot Project LNG for Long Haul Vehicle at Indominco

Fuel conversion from diesel to LNG fuel for

heavy duty vehicles in Indominco and KPC
(mining company) in East Kalimantan.

LNG Storage
tank
modification
for LNG
fueling station

LNG Trailer
(head truck,
trailer, ISO
tank) with
capacity 20 m3

Delivery point
LNG for
hauling truck

PILOT PROJECT : November 2013

Location : Pilot Project at PT Badak
NGL, Bontang East Kalimantan with
Indominco Mining.

Pilot Project LNG for Heavy Equipment at KPC

13

14

15

16

17

18

19

20

21

22

Trial Period: Nov 2013 Mar 2014

Deliver from LNG Badak by Trucks,
using Isotank 20 ft.
Maximum delivery 2 trucks 20 ft per
day.
LNG Loading/unloading at PT Badak
LNG Loading /unloading at KPC site to
trucks.

0.08

112

451

566

615

669

727

789

857

931

Alternative 1: by LCT.

LNG demand profile

Gas Supply (x1000 Metric Ton) *)

*)LNG for Mining demand forecast profile including

Indominco and KPC (but it has not taking into account
other potential company such as Arutmin Indonesia,
Berau Coal, Adaro, and Antam).

Deliver from Bontang by LCT est

400 isotanks (est for 50 mmsCFD)
Alternative 2: by mini LNG vessel +
Isotank
Need to have delivery trucks, isotanks
in KPC to accommodate the quantity

Page 22

Agenda

Pertaminas Energy Policy & Strategy

Pertaminas Business Overview

4
5
6

Upstream Business

Midstream Business
Downstream Business

New & Renewable Energy Business

Page 23

Refinery Development
The objectives are to make the existing refineries competitive and expanding its capacity ..

Refinery Unit V
Balikpapan
Capacity: 260 mbsd
NCI: 3.27

Refinery Unit II
Dumai
Capacity: 170 mbsd
NCI: 7.5

Refinery Unit III

Plaju
Capacity: 135 mbsd
NCI: 3.1

Refinery Unit VI
Balongan
Capacity: 135 mbsd
NCI: 11.9

Refinery Unit IV
Cilacap
Capacity: 350 mbsd
NCI: 3.98

New Grass Root

Refinery in Bontang
with PPP scheme (plan)

Refinery Unit VII

Kasim
Capacity: 10 mbsd
NCI: 2.4

New Grass Root Refinery in

Tuban with partnership
scheme with Aramco

Page 24

Refining Development Master Plan (RDMP)

Pertamina will transform its refining business by upgrading up to 5 major existing
refineries..

Dumai refinery

Balikpapan refinery
Plaju refinery
Balongan refinery
Cilacap refinery

Crude flexibility

Complexity

Product quality

Crude quantity

~2% S

8-9

EURO IV

x2

of crude flexibility

NCI

up from EURO II

increased capacity

Sulfur handling limit from

0.4% to ~2% S

Complexity improved
from 5 to 8-9

Gasoline from 500 to <50 ppm S

Diesel from 3,500 to <50 ppm S

From 820,000 BPD

to 1,610,000 BPD

SOURCE: Pertamina

Page 25

Grass Root Refinery (GRR)

Building World-Class Refining Capacity for Indonesias Energy Needs.
New Grass Root
Refinery in Bontang
with PPP scheme
(Government plan)

Bontang refinery

Tuban refinery
New Grass Root Refinery in
Tuban B to B scheme with
Aramco

Crude flexibility

Complexity

~2% S

10-12

of crude flexibility

NCI

Sulfur handling limit up to

~2% S

World class Complexity

SOURCE: Pertamina

Product quality

Crude quantity

EURO IV - V

300,000
BPD

Gasoline 10 - 50 ppm S
Diesel 10 - 50 ppm S
Page 26

Can be increased to 400,000

BPD

Downstream Marketing & Trading :

Increasing demand leads infrastructures to be upgraded
Region I

SABANG

Region VI

KRUENG RAYA
LHOK SEUMAWE
MEULABOH

Region VII

INST. MEDAN
GROUP

SIMEULUE

NATUNA GROUP
TARAKAN

SIANTAR

TAHUNA

BERAU
SIBOLGA
G. SITOLI

Region VIII

KISARAN
UP. II - DUMAI
SIAK

TT P. SAMBU
TEMBILAHAN
TT. TLK. KABUNG

KIJANG

LUBUK LINGGAU
LAHAT
PULAU BAAI

PONTIANAK

SINTANG

KERTAPATI

SAMARINDA

PULANG PISAU

TANJUNG
PANDAN

UP. III - PLAJU

BATURAJA

DONGGALA
AMPANA
POSO
KOLONDALE

KETAPANG

PANGKAL
BALAM

PKL.BUN

TERNATE
GORONTALO

MOUTONG
PARIGI

BALIKPAPAN

JAMBI

BITUNG

TOLI - TOLI

TT TG. UBAN

KSO Kabil

PARE - PARE
KOLAKA

SAMPIT

UP. VII KASIM

NAMLEA

BULA

MASOHI

FAK - FAK

Region III

TEGAL
MAOS
TT LOMANIS
UP. IV
CILACAP

CEPU

TUBAN
TERAS
REWULU

Region IV

KAIMANA
TIMIKA

BAU -BAU

TUAL

CIKAMPEK
BALONGAN PENGAPON

PADALARANG
UJUNGBERUNG
TASIKMALAYA
CILACAP

JAYAPURA

NABIRE

RAHA
MAKASSAR

IJG

MANOKWARI
SERUI

WAYAME

PALOPO

Region II
TT. GEREM

SORONG

SANANA

BANGGAI

KOTA BARU

BIAK

LABUHA

LUWUK

KENDARI

BANJARMASIN

PANJANG

TOBELO

DOBO

CAMPLONG
ISG
MALANG
TG. WANGI

BADAS BIMA

MANGGIS

MAUMERE
REO

AMPENAN
WAINGAPU

ENDE L. TUKA

Region V

KALABAHI

SAUMLAKI

MERAUKE

DILI
ATAPUPU
KUPANG

Additional Infrastructures needed towards 2025

3,6 mil KL

500 K Ton

# 32 Jetties

#31 vessels

2,200 KL/hour

Page 27

Downstream Marketing & Trading :

Pertamina Operational Area

Providing 5000+ gas station outlet to secure Indonesia fuel need..

July 2014
Total Gas Stations

5,161

Source: Pertaminas Annual Report

Page 28

Downstream M&T : LPG Plants

LPG Distribution Facilities
LPG Depo/Terminal
: 19
SPPBE/SPBE 3 kg
: 323
SPPBE/SPBE/SPPEK 12&50 kg : 99
LPG 3 kg agents
: 2639
LPG 12 & 50 kg agents
: 608
Floating storage
: 220,000 MT
Tanker VLGC (@44,000 MT)
:3
Tanker semi-ref. (@10,000 MT) : 6
Tanker pressurized (@1,800 MT) : 9
Skid tank
: 938

Region I (SumUt, NAD, Riau, Kep. Riau dan

Sumbar)
Pkl. Susu

Natuna
P. NATUNA

Medan

MEULABOH

TARAKAN

SIBOLGA
P. BATAM

G. SITOLI

Dumai

TOLI - TOLI

Tj. Santan

Bontang

SIAK

Tj. Uban

Padang

MOUTONG

SINTANG

P. SAMBU

SAMARINDA

PONTIANAK
JAMBI

BALIKPAPAN

Jabung

GORONTALO

BONTANG

DONGGALA

SUBUNG

Balikpapan

POSO
MANOKWARI

PARIGI

CILIK RIWUT

LUWUK

SAMPIT
KOLONDALE
PALOPO

BENGKULU

Palembang
Plaju

BULA
BANGGAI

P. PISANG

PKL.BUN

KENDARI

NAMLEA
MASOHI

PARE - PARE

BANJARMASIN

FAK - FAK
KOLEKA
RAHA

KOTA BARU

PANJANG

BAU -BAU

Region II (Sumsel, Lampung,

Bengkulu, Jambi, Babel)

Region VI (Sulawesi, Kalimantan excl West

Kalimantan, Maluku, Papua)

UJ. PANDANG

Ujung Pandang

TUAL

PLUMPANG
SEMARANG

MERAUKE

CAMPLONG

SURABAYA

Surabaya

MENENG

MAUMERE

BADUNG

BIMA

TT. Manggis
Region III (DKI, western of Java &
Pontianak)

KALABAHI

REO

SAUMLAKI

AMPENAN

L. TUKA

DILI

ENDE
WAINGAPU

ATAPUPU

KUPANG

Region IV (Central of Java & DIY)

Region V (East Java, Bali & Nusa Tenggara)

Page 29

Downstream Marketing & Trading :

Operational Area Marketing and Distribution in Indonesia

Pertamina handles the most complex distribution in the world in delivering fuel products
across the country
: Fuel Depot
: Refining Units
: Fuel Distribution Line

: Back Loading Terminal

: Transit Terminal

: Ship to Ship

SABANG
KRUENG RAYA
LHOK SEUMAWE

MEULABOH

P. NATUNA

UP. I - PKL. BRANDAN

TARAKAN

TAHUNA

LAB. DELI
SIBOLGA
BITUNG
UP. II - DUMAI

G. SITOLI

P. BATAM

TOBELO

TOLI - TOLI

SIAK
P. SAMBU

JAMBI

DONGGALA

UP. III - PLAJU

PARIGI

LUWUK

P. PISANG

SERUI
BULA

BANGGAI

NAMLEA

KENDARI

PARE - PARE

BANJARMASIN

MANOKWARI

TT.
WAY AME

SANANA

KOLONDALE
PALOPO

BIAK

SORONG

POSO

CILIK RIWUT

PKL.BUN

PABUHA

SUBUNG

BALIKPAPAN

SAMPIT
BENGKULU

MOUTONG

SAMARINDA

PONTIANAK

TT. TLK.
KABUNG

TERNATE

GORONTALO

BONTANG

SINTANG

NABIRE

MASOHI

JAYAPURA

FAK - FAK

KOLEKA
PANJANG

RAHA

KOTA BARU

TLK. SEMANGKA

BAU -BAU
UJ. PANDANG

UP.VI
PLUMPANG

TUAL

BALONGAN
SEMARANG

DOBO

CAMPLONG
SURABAYA

TT.
TG. GEREM/MERAK

IMPORT

MENENG

UP. IV
CILACAP

MERAUKE

MAUMERE

BADUNG

KALABAHI

REO
AMPENAN
TT. TLK
MANGGIS

BIMA

KALBUT

ENDE
WAINGAPU

SAUMLAKI

L. TUKA

DILI
ATAPUPU

KUPANG

IMPORT

5,161 unit Gas Stations, 603 APMS, 260 SPDN, 50 SPBN

113 Fuel Terminals, 3 Lube Oil Blending Plant
62 Aviations Depot
220 vessels (63 own, 157 chartered)
1,835 KM pipelines

M&T UPDATE

Page 30

Downstream M&T : Expansion

Lubricant, Aviation (Avtur), Bunker
Aviation Fuel (AVTUR)

Lubricant

Korea
Selatan

Sales Area 2008-2013

24 countries
Jeddah
(JED)

Hongkong
(HKG)

Madina

Bombay

Bangkok

Penang

(BKK)
Kuala
Lumpur
(KUL)

Manila
Singapore
(SIN)

Implementing the concept of Conco Delco, Pertamina

Aviation is at 10 international airports

Bunker

Bunker charging operation using a

third party by implementing the
concept of Conco Delco::
1. Singapura
2. Fujairah
3. Jepang
4. China
5. Jepang

Page 31

Agenda

Pertaminas Energy Policy & Strategy

Pertaminas Business Overview

4
5
6

Upstream Business

Midstream Business
Downstream Business

New & Renewable Energy Business

Page 32

New & Renewable Initiatives

in line with Government interest in optimizing energy business, Pertamina enlarge the scope
of activity by includeing new and renewable initiatives

Environment Friendly Business to align with the Government Policy

PERTAMINAS
RENEWABLE
ENERGY
PROJECTS

Indonesias Energy Mix 2011

Indonesias Energy Mix 2025 **)

100% = 1,176 Mboe

100% = 2,785 Mboe

NRE *)

Oil

Coal

Geothermal
Green Diesel
Bioethanol
Bioavtur
Coal to
Ethanol
Wind
Waste to
Energy
Hydro
**) Source:

NRE

MEMR Indonesia.

Oil

Gas

Gas

Coal

*)

New & Renewable Energy

**) Berdasarka Energy Mix ESDM Primary Energy Mix 2025

Page 33

Thank You
Disclaimer

These materials have been prepared by PT Pertamina (Persero) together with its subsidiaries, (the Company) and have not been independently verified.
No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information
presented, contained or referred to in these materials. Neither the Company nor any of its affiliates, advisers or representatives accepts any liability
whatsoever for any loss howsoever arising from any information presented, contained or referred to in these materials. The information presented,
contained and referred to in these materials is subject to change without notice and its accuracy is not guaranteed.
These materials contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or
current expectations of the Company or its officers with respect to, among other things, the operations, business, strategy, consolidated results of
operations and financial condition of the Company. These statements can be recognized by the use of words such as expects, plan, will, estimates,
projects, intends, or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks,
uncertainties, and assumptions and actual results may differ from those in the forward-looking statements as a result of various factors. Forward-looking
statements contained herein that reference past trends or activities should not be taken as a representation that such trends or activities will necessarily
continue in the future. The Company has no obligation and does not undertake to update or revise forward-looking statements to reflect future events or
circumstances.
These materials are highly confidential, are being given solely for your information and for your use and may not be copied, reproduced or redistributed to
any other person in any manner. Unauthorized copying, reproduction or redistribution of these materials into the U.S. or to any U.S. persons as defined in
Regulations under the U.S. Securities Act of 1933, as amended or other third parties (including journalists) could result in a substantial delay to, or
otherwise prejudice, the success of the offering. You agree to keep the contents of this presentation and these materials confidential and such presentation
and materials form a part of confidential information.

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