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Annual Shareholders Meeting Leading the Way Vienna, 17 June 2016

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Page 1: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

Annual Shareholders Meeting

Leading the WayVienna,17June2016

Page 2: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

DISCLAIMER

Youmustreadthefollowingbeforecontinuing:ThisdocumenthasbeenpreparedbyC.A.T.oilAG(“C.A.T.oil”or“theCompany”) forinformationpurposes only, solelyforuseatpresentations bytheCompanyheld inconnectionwithmeetingswithinvited(potential)investors, analystsandselectedstakeholders, andmustbetreatedconfidentially byattendeesatsuchpresentationsandmustnotbedistributed, passedonorotherwisedisclosed.

Theinformation andopinions containedinthisdocumenthasnotbeenindependently verified andnorepresentationorwarranty,expressorimplied, ismadeasto,andnorelianceshould beplacedon,thefairness,accuracy,completeness orcorrectnessoftheinformationoropinions containedherein.Theinformation andopinions inthesematerialsareprovided asatthedateofthisdocumentandaresubjecttochangewithoutnotice.This documentcontainsvariousforward-lookingstatementswhichreflecttheCompany’s management’s currentviewswithrespecttocertainfutureevents,performancesandfinancialresultsallofwhichareperseuncertainandsubjecttovarious internalandexternalfactors.NoneoftheCompany, anyofitsaffiliates,advisors orrepresentativesacceptsanyobligationtoupdateanyforward-looking statementssetforthhereinortoadjustthemtofutureeventsordevelopments.NoneoftheCompanyoranyofitsaffiliates,advisors orrepresentativesshallhaveanyliabilitywhatsoever(innegligenceorotherwise)foranylosswhatsoeverarisingfromanyuseofthisdocumentoritscontents,orotherwisearisinginconnectionwiththisdocument, oranyactiontakenbyyouoranyofyourofficers, employees, agents,affiliatesorassociates onthebasisofthisdocumentoritscontents.Nothinginthisdocumentis,orshallbereliedupon as,apromiseorrepresentationbytheCompany, anyofitsaffiliates,advisors orrepresentatives.

Thisdocumentdoes notconstitute, orformpartof, anofferorinvitationtopurchaseanysharesorarecommendationregardingthesharesoftheCompany andneitheritnorpartofitshallformthebasis of,orberelieduponinconnectionwith,anycontractorcommitmentwhatsoever.

Thismaterialisgiveninconjunctionwithanoralpresentationandshould notbetakenoutofcontext.

2

Page 3: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

3

C.A.T.OILCOMPANY’SSNAPSHOT

AUSTRIA

RUSSIANFEDERATION

KAZAKHSTAN

Founded

1991CorporateHQ

Vienna,Austria

ListedonFSE

2006Segmentlines

5Employees

approx.3,3007nationalities

Clients’portfolio

>25Customers

Page 4: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

ECONOMICENVIRONMENTIN2015

4

Indicators 2015/2014 2014/2013Economicgrowth(GDP) (3.7%) 0.7%Industrialproduction (3.4%) 1.7%Oilproduction 1.3% 1.1%Investments (8.4%) (1.5%)Inflation(CPI) 15.5% 7.8%ProducerPriceIndex(PPI) 12.4% 6.1%EUR/RUBavg,change% (33.0%) (19.0%)Realdisposable income (4.0%) (0.7%)

Sources:MinistryofEconomyofRussia,Rosstat

KeyRussianeconomicindicators

RussianGDPandoiloutputdynamics2010–2015

§ OilproductionisoneofpositiveexamplesinRussianindustryinthecontextofrecession

§ PrudentgovernmentandCentralBankmanagementsoftenedimpactofrecession

§ In2015inRussiaGDPdynamicslostcorrelationwithoilproduction

§ Theoilindustrywasamaindriverofeconomicgrowthduringmostpartofpost-sovietperiod

§ Oilproductionreachedarecordlevelof533mtons

Page 5: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

CURRENCYANDOILPRICEDEVELOPMENT2015

5

Sources:BankofRussia, http://ru.investing.com

§ StronginteractionbetweenoilpriceandcurrencyexchangerateshasdirectimpactonC.A.T.oil’sfinancialsexpressedinEUR

§ C.A.T.oil’sbusinessisaffectedbydoublenegativeimpactofoilpriceandcurrencydevaluation

Page 6: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

HIGHLIGHTSOFC.A.T.OILGROUP2015

6

Q4’15October:Foundation ofManagementCompanyPetroWeltTechnologiesDecember:PaidoutSberbank loaninfull

Q1’15January:Joma announced acquisitionof39.36%ofthesharesinC.A.T.oilunder themandatoryofferFebruary:Yury SemenovwasappointedCEOandValeryInyushin CFO

Q2’15April:Recorddrilling forGPNOrenburg:1,000mofhorizontaldrilling in12.3daysMay:Allequipmentunder InvestmentProgramwasmanufacturedanddelivered

Q3’15June:C.A.T.oilannounced fullcapacitiesutilizationfor2015July:TheCompanyperformed 30,000thfracturing jobforSlavneft - MNG

Page 7: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

TASKS2015VS NEWAPPROACHES

7

“ProblemekannmanniemalsmitderselbenDenkweiselösen,durchdiesieentstandensind…“AlbertEinstein

Plan’15 Fact’15

CORPORATEGroupManagementControl Immediately Positive

GroupRestructuring Continuously InProgress

FINANCE Strong financialresults Continuously Positive

OPERATIONSMaintainingongoing operations Immediately Positive

ImprovementofServiceQuality Continuously Positive

CONTRACTINGContractnewequipment Immediately Positive

Tendersfor2016 Continuously Positive

LEGAL “Caterpillar”legalcase Immediately Positive

Page 8: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

NEWSTRUCTUREFOREFFICIENTMANAGEMENT

8

PetroWeltTechnologieshasbeenfoundedbasedonanadded-valueapproachto:

§ Createmoremanagementandoperationalefficienciestowardsourclientsandcontractors

§ Generatesynergyandcostsavingamongsupportingandadministrativefunctions

§ Strengthenfocusofoperatingcompaniesonfieldexecutionandqualityofoperations

§ AdjustGroup’sstructureforimplementationofstandards,KPI,policiesetc

Page 9: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

2015 2016–2018

404.5322.5

2014

412.1

2013

426.5RevenuesandOrderBookinEURm (31March2016)

§ Allequipmentonsiteinworkingmodeandnearly100%contractedfor2016

§ NewequipmenttostrengthenregionalpresencesandmaintainGroup’smarketshareviacompetitiveadvantages

§ Orderbookfor2016–2018amountstoEUR404.5m,keepingsafecommercialpositionofC.A.T.oilGroup

CapacityAdditions2014–2015

existingcapacities added2014 added1st HY2015

SidetrackingRigs Σ 26

FracturingFleets Σ 16

DrillingRigs Σ 15

Revenues Orderbook2016–2018asof31March2016

CAPACITYEXPANSION&ORDERBOOKSTATUS

9

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REVENUEDEVELOPMENTIN2015

10

WellServices Drilling,Sidetracking,IPM

176.0219.2

RevenueinEURm

-19.7%

4,231 4,688

37.5

51.8

10.8%

Jobs ØRevenue/JobinEURthsd.

-27.6%

195.2147.4

756.7

513.7

RevenueinEURm

Jobs ØRevenue/JobinEURthsd.

-24.5% 11.2% -32.1%

RevenuesperCustomerin%intotalRevenue

OthersTomskneftSlavneftGazpromNeft

LukoilRosneft

2015(in%oftotal revenueofEUR322m)2014

ServiceProfile2015

0.7%OtherServices2.1%Cementing

25.9%SidetrackDrilling

51.8%HydraulicFracturing

19.5%ConventionalDrilling

287258

2014 2015 2014 20142015 2015 2014 2015 2014 2015 20152014

13.0

27.4

11.6 7.7 7.8 5.3

16.6

5.19.412.9

35.3

48.1

Page 11: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

C.A.T.OILFINANCIALRESULTS2015ATAGLANCE

11

inEURm 2015 2014 Changein%

Revenue 322.5 412.1 (21.8)

EBITDA 81.5 113.2 (28.0)

EBITDAmarginin% 25.3 27.5 (8.0)

EBIT 31.0 67.9 (54.4)

EBITmarginin% 9.6 16.5 (41.8)

Netprofit 20.3 54.1 (62.5)

Equityratioin% 48.3 44.5 8.5

Earningspershare 0.42 1.11 (62.2)

Employees 3,303 2,972 11.1

§ Declineofrevenueduetocurrencydepreciation

§ EBITDAmarginandoperatingcashflowcontinuedtobegenerated

§ Equityratiostrengthenedto48.3%

ExternalpressureaffectedGroupresultsbutkeyfinancialsremainedstrong

Page 12: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

NETINCOMEDEVELOPMENT

12

Earningspershare

20141.11

20150.42 (62.2)%

§ Group’snetincomecontractedby62.5%yoy toEUR20.3m(2014:EUR54.1m)duetocompressedEBIT,higherinterestandsignificantFX-changes

§ ThemorepronounceddropinnetprofitcomparedtoEBIT(-62.5%versus-54.4%yoy)canbeprimarilyattributedtotheincreaseineffectivetaxratefrom24%in2014to30%in2015andadditionalinterestscharges

§ ConsequentlyearningspersharediminishedtoEUR0.42(2014:EUR1.11)– unchangedaveragenumberofsharesoutstanding:48,850,000

54.11

(5.35)20.30

8.48

(36.94)

Interest&FXChange

NetIncome2015

TaxChange

EBITChange

NetIncome2014

2015NetProfitReconciliation inEURm

inEUR

Page 13: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

DEVELOPMENTOFBALANCESHEETSTRUCTURE

13

31Dec.2015 31Dec.2014

Balancesheetpositions EURm Share EURm Share

Currentassets 144.9 48.1% 180.7 47.6%

Non-currentassets 156.4 51.9% 199.1 52.4%

Assets 301.3 100.0% 379.8 100.0%

Currentliabilities 51.6 17.1% 88.0 23.2%

Non-currentliabilities 104.2 34.6% 122.9 32.3%

Equity 145.5 48.3% 168.9 44.5%

Liabilitiesandequity 301.3 100.0% 379.8 100.0%

Solidbalancesheetstructureprerequisitetotakeonfuturechallenges

§ Non-currentandcurrentliabilitiesweresubstan-tially reduced

§ Non-currentassetsmorethanoffsetbyequityandnon-currentliabilities

Page 14: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

DEVELOPMENTOFNETDEBT

14

Keyfigures 31Dec.2015 31Dec.2014

LiabilitiesagainstC.A.T.Holding(Cyprus)Ltd., inEURm 104.8 100.7

Tradepayables,inEURm 25.4 57.0Otherliabilitieswiththe exceptionofaccruedliabilities,inEURm 2.8 0.7

Less:cashandcashequivalents,inEURm (28.5) (58.2)Netdebt,inEURm 104.5 100.2Totalequity,inEURm 145.5 168.9Netdebttoequityratio,in% 71.9% 59.3%Netdebt/EBITDA 1.3 0.9

Totalnetdebt/EBITDA-ratio:1.3xisundersafethresholdof2x

Page 15: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

15

inEURthousand 2015 2014

Profitbeforetax 28,873 71,126

Cashflowsfromoperatingactivities 67,328 80,140

Changein WorkingCapital 2,048 (20,147)

Cashflowsusedininvestingactivities (67,027) (134,295)

Cashflowsfromfinancingactivities (29,175) 84,749

Cashandcashequivalents 28,465 58,238

Cashandbankdeposits 40322 58,238

CASHFLOWDEVELOPMENT

Lower profitpartly compensatedby improvedchange of workingcapital

Page 16: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

MOODY’S:RATINGCONFIRMEDWITHSTABLEOUTLOOK

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§ Moody’sconfirmedBa3ratingon27April2016

§ Ratingsrationalehighlightsrobustbusinessmodel,well-investedmodernasset-base,strongmarketpositionandorderbook,conservativefinancialandliquiditypolicy

§ Stableratingoutlookreflectsexpectationthat“C.A.T.oilwillcontinuetodemonstratehealthyoperatingandfinancialresultsduringmarketdownturnandmaintainastrongliquidityprofileandaconservativefinancialpolicy”

Page 17: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

(71.5)%(77.8)%

(54.4)%

(21.8)%

(62.5)%

(34.8)%

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PEERSCOMPARISONOFCHANGEOFKEYFINANCIALS

Revenue NetprofitOperatingincome

C.A.T.oil Peergroup

Sources:AR2015ofcompanies

2015 2014

in EURm Revenue EBIT Netprofit Revenue EBIT Netprofit

Nabors 3,481.5 141.4 (335.7) 5,145.0 456.9 (507.1)

Calfrac 1,053.9 20.7 (156.2) 1,703.0 243.6 45.7

Trican 183.6 (7.7) (213.2) 475.2 67.7 8.1

C.A.T.oil 322.5 31.0 20.3 412.1 67.9 54.1

Total 5,041.4 185.4 (684.8) 7,735.2 836.2 (399.2)Sources:AR2015ofcompanies

C.A.T.oilonlycompanywithpositivebottomlineandbetterkeyfinancialdynamicsversuspeergroup

Page 18: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

ThestockmarketappreciatesC.A.T.oil’sresiliencetotheexternalpressureandtheviabilityofourbusiness

0

20

40

60

80

100

120

140C.A.T.oil Calfrac Trican Nabors

STOCKMARKETCOMPARISONOFPEERGROUP

18

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2015

Page 19: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

OUTLOOKFOR 2016BUSINESSYEAR

19

§ Longestglobaldownturn inspiteofoilpricetemporaryrecovery

§ RussiancurrencycanappreciateinQ2–Q3duetooilpriceandstateintervention

§ OilproductioninRussiaexpectedtoremainonlevelof2015

§ OperatorswillcontinueProcurement-Driven-Model

§ CompanyexpectsrevenueinRouble toraiseby1–2%in2016,basedonfullymarketedcapacities

§ MarginsregardingEBITandEBITDAareexpectedaround12%and25%respectively

-60%

-50%

-40%

-30%

-20%

-10%

0%1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Months afterpeak

ChangeinInternationalD

rillingRigCountAfterPeak(%

)

20152016

1999

2009

Phase1 Phase2 Phase3

Source:BHIRigCount,SLBAnalysis

“It isn't going to sink indefinitely…”TheodoreDreiser,TheFinancier

Page 20: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

RULESOFGROWTH

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“Ittakesalltherunning you cando,tokeepinthesameplace.Ifyouwanttogetsomewhereelse,youmustrunatleasttwiceasfastasthat!...”LewisCarrol

PRIORITY LEVERAGE

Reducedependenceonexternalfinancing

§ Strongpaymentdisciplineindebtservice§ Strongself-financingposition

Developongoingactivities § Continuous improvement inoperations§ Highbarforstandards

Facilitatefinancialstrengths

§ Incomeandexpenditurecare§ ControlofCAPEX&OPEXviaefficientprocurementandresourcesallocation

“Watchtherightmomentum”

§ M&Aisthefastestwaybutmustbeasubjectofpragmatism,businessstrategyandopportunity

§ Companymustpositivelygainoutofanycollaborationorrightopportunity

Page 21: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

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2016 2020

FINANCEGrowfasterofOFSmarketand2xofGroup’sRevenue.40–50%revenuefromoverseas

QHSEHighQHSEculture,Opera-tionalefficiency andconti-nuousreductionofRedMoney

DEVELOPMENTTurnintointernationalserviceproviderwithmulticountyfootprint

CLIENTSRecognizedleaderinareasofoperationsandfastrespondingonClientsneeds

"Changebeforeyouhaveto.Neverbehappywhereyouare.Getacultureatyourcompanythatloveschange.Andeverytimethere'saquantumchange,jump!“

JackWelch

OURROADMAP

Page 22: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

INVESTORRELATEDINFORMATION

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FinancialCalendarfor2016 IRContact

26August2016 Half-yearreport201625November2016 InterimreportQ32016

C.A.T.oilAGKärntner Ring11‒13A-1010Vienna

Phone: +43(0)15352320-0E-Mail: [email protected]: www.catoilag.com

22June2016 RecordDate,ex-dividend28June2016 DividendPayment

Page 23: Leading the Way - wellpropp.comDISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG (“C.A.T. oil” or “the Company”) for

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THANK YOUFOR YOUR ATTENTION!