1

Presentation for Investors and Shareholders

For Third Quarter, 2016

2 November 2016 Zrenjanin

Anton Fedorov

2

NIS IN Q3 2016

Exploration and Production

• Estimated increase in reserves in 2016 – 3.7%.

• Kumane – drilling started in August.

• Velebit – drilling of 6 wells completed.

• RAG Kixa-004 – preparatory and major workover for the purpose of extended testing by bottomhole pump is in progress.

• Blocks Ex-7 and Ex-8 – interpretation of new 3D seismic data covering 306 km2 (2014: 70 km2 and 2015: 237 km2) completed. Interpretation results have been integrated into the geological model and resource base estimation.

• Jimbolia-6 – gas flowed; the process of permitting infrastructure set-up continues.

• Turija I – interpretation of 3D seismic data and processing of Turija II 3D seismic data underway.

3

NIS IN Q3 2016

Refining

• Implementation of plans to optimise the basket of raw materials (refining of new oil types Kirkuk, Forcados).

• De-preservation and start-up of units of “Small” Atmospheric Distillation and Merox kerosene with a view to increasing the volume of refining and efficiency of production.

• In-line petrol blending project completed.

• Final version of the extended Front End Engineering Design (FEED) for the Delayed Coker Unit (DCU) obtained along with a tendering package (ITB) for auxiliary units. EPCM Contractor selected for the main package – construction of DCU. Long Lead Item (LLI) contracts for the purchase of equipment signed.

• Major overhaul successfully completed in September 2016.

• Heat exchanger Packinox, which will ensure a higher degree of energy efficiency at the Platforming Unit (C-300), put into operation.

4

NIS IN Q3 2016

Sales and Distribution

• G-Drive diesel branded fuel starts selling in the Bulgarian market.

• Development plan for the next 3 years made in accordance with a new methodology.

• Stocking up at the warehouses of Sales and Distribution in order to get ready to supply the market with all types of petroleum products during the overhaul of Pancevo Refinery.

• Running marketing campaigns focusing on seasonal agricultural activities, as well as on increasing sales in all categories of retail customers.

• Preparation for the autumn and winter periods, including the creation of a new fuel quality control process.

• Launch of total reconstruction works at FFS Subotica 2.

5

NIS IN Q3 2016

Energy

• Combined Heat and Power (CHP) Plant Pančevo

- Tender finished and final commercial negotiations held - Share capital paid by NIS and GEH

• Small power plant Majdan (2.4 MW) ‐ Put into operation on 2 August 2016

• Small power plant Novo Miloševo (9.8 MW)

‐ Technical Terms of Reference for the preparation of the Feasibility Study with Conceptual Design defined and the study analyser determined (NTC)

‐ PE Srbijagas agreed with the preparation of documentation and approved the participation of MSK Kikinda

‐ Messer’s offer for the construction of bottomhole gas treatment unit received

• CNG filling stations ‐ CNG Čačak 1 – put into operation on 29.7.2016 ‐ CNG Žarkovo 2 – project approved at the IC of the Block, Technical Terms

of Reference for the procurement of main equipment defined - CNG Ostrovo – draft expert opinion of the Faculty of Mining and Geology

on the interaction of objects and activities of NIS and water sources provided for inspection and comments submitted

• Kovin (CHP, coal exploitation) - Preparation of the Feasibility Study for the new mine began.

6

Macroeconomic Indicators Continuation of Adverse Macroeconomic Trends

USD/RSD Exchange Rate +2% Price of Brent Oil, $/bbl -25%

• The average value in the first nine months of 2016 is by 2% higher than the average value in the first nine months of 2015

• In 9M 2016 – decrease by 1%

• In 9M 2015 – increase by 7%

• The average price in the first nine months of 2016 is by 25% lower than the average price in the first nine months of 2015

• In 9M 2016 – increase by 32%

• In 9M 2015 – decrease by 14%

99,4641

106,4910

108,2064

111,2468 109,8965

110,2386

98

103

108

113

I I II III IV V VI VII VIII IX

54,98

47,29

55,39

36,53 48,11

41,77

20

40

60

I II III IV V VI VII VIII IX

7

HSE Indicators

Positive Trend

Increase in transparency LTIF RAR

LTIF - Injury coefficient (fatalities and injuries with lost days multiplied by 1 million and divided by the number of man hours) RAR - Ratio between the number of traffic accidents and km travelled, multiplied by 1 million

2.2

1.76

3.52

2016Plan

9М 2016

9М 2015

0.32

0.31

0.38

2016Plan

9М 2016

9М 2015

3%

9М 2015 9М 2016

12,662 35,881

958 691

92 75

9 5 Major events

Medium events

Minor events

Near-misses

50%

20%

18%

8

Q3 2016 Key Indicators

NIS Group

Q3

2016 Q3

2015 Key indicators

Unit of measure

9M 2016 9M

2015

44.1 49.5 -11% Urals $/bbl 40.1 54.6 -27%

4.5 6.0 -24% Net profit RSD bn 7.7 10.9 -30%

9.3 11.3 -17% EBITDA RSD bn 22.5 32.3 -30%

52.7 55.8 -6% Sales revenue RSD bn 134.1 159.2 -16%

9.6 11.7 -18% OCF RSD bn 18.2 36.0 -50%

41.2 42.1 -2% Accrued liabilities for taxes and other public revenue

RSD bn 117.5 109.3 +7%

365 395 -8% Output of oil and gas Thousand TOE 1,108 1,190 -7%

240 265 -9% Output of domestic oil Thousand tons 733 801 -8%

626 890 -30% Volume of refining of oil and semi-finished products Thousand tons 2,376 2,401 -1%

861 872 -1% Total sales of petroleum products Thousand tons 2,414 2,335 +3%

68 54 +26% Sales – foreign assets Thousand tons 191 142 +34%

793 818 -3% Sales of petroleum products in the domestic market Thousand tons 2,223 2,193 +1%

570 545 +5% Motor fuel Thousand tons 1,529 1,439 +6%

243 228 +6% Retail Thousand tons 668 619 +8%

5.6 6.5 -18% CAPEX RSD bn 14.5 19.0 -24%

708 677 +5% Total bank indebtedness

USD mn 708 677 +5%

9

Trends in Motor Fuel Markets

9M 2016/9М 2015

Key factors behind growth in the consumption of motor fuel in the region: - Macroeconomic parameters - Growth in fuel consumption in the

segment of transport, processing industry and construction

Slovenia

3.2%

Croatia

2.0%

B & H

2.1%

Hungary

3.0% Romania

3.6%

Bulgaria

2.2%

Serbia

2.0% Serbia • Growth in diesel consumption

— Infrastructure activities, — Better results of processing

companies, — Solid agricultural season, — Also accountable to growth in

transport

• A portion of diesel consumption has gone to the grey zone

10

Market Share - Serbia

Petroleum Product Market 9M 2016

Volume of the petroleum product market Thousand tons +4.6%

• Total consumption of petroleum products is on the rise

• Increase in the consumption of: - Virgin naphtha and petrol, - Diesel - Mazut and - Bitumen because of lower prices and intense infrastructure activity.

• Decrease in the consumption of: - LPG, - Fuel oil and - Mazut

Reasons for a slightly lower market share of NIS lie in the increasing quantities of petroleum products in the so-called grey zone as a segment non-accessible to legal market participants.

564 (23%)

665 (26%)

1,865 (77%)

1,875 (74%)

2,428

2,540

9M2015

9M2016

Others NIS

11

Market Share - Serbia

Retail Market 9М 2016

Volume of retail market Thousand tons +1.8%

• Increase in the retail market volume by 1.8%

• Growth in consumption as a result of:

- Lower prices - Mild winter - Growth in transport - Early start of agricultural activities

• NIS has increased its market share by 1.3%

• NIS has recorded an increase in the sales of:

- Petrol - Diesel - Autogas

701 (59%)

697 (57%)

495 (41%)

520 (43%)

1,195

1,217

9M2015

9M2016

Others NIS

12

Market Share - the Region

9М 2016*

Bosnia & Herzegovina

Number of FS: 35 % total market: 10.7% % retail market: 10.4%

Romania

Number of FS: 18 % total market: 0.6% % retail market : 1.0%

Bulgaria

Number of FS: 35 % total market : 4.5% % retail market: 4.4%

*Compared to the market share in 9M of 2015

13

Operating Indicators

Exploration and Production

Output of oil and gas Thousand conditional tons

-7% -8%

• Over and above the plan: - Output of domestic oil - +11.9 thousand tons - Output of domestic gas - +0.3% - Undertaking GTA - Production from additional drilling

265

257

251

243

240

115

116

112

111

112

15

14

14

13

13

395

387

377

366

365

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Domestic oil Domestic gas Angola

The estimated increase in hydrocarbon reserves is

3.7%

801

733

344

335

44

40

1,190

1,108

9M2015

9M2016

Domestic oil Domestic gas Angola

14

Operating Indicators

Refining

Volume of refining Thousand tons

-1% -30%

• Volume of refining in accordance with:

- Market demands - Optimisation of refining types of oil and other raw materials - Decrease in the volume of refining in Quarter 3 due to major overhaul

1,357

1,618

782

612

262

146

2,401

2,376

9M2015

9M2016

Imported oil Domestic oil Semi-finished products

544

545

474

696

447

265

251

245

229

137

81

83

56

49

42

890

879

776

974

626

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Imported oil Domestic oil Semi-finished products

15

Operating Indicators

Sales and Distribution

Volume of sales* Thousand tons

+3% -1%

• Retail – Serbia – volume increase of 5% • Wholesale – Serbia – volume increase of 1%

• Exports – volume decrease of 3% • Foreign assets – volume increase of 34%

496

522

142

191

1,348

1,363

348

339

2,335

2,414

9M2015

9M2016

Retail - Serbia Foreign assetsWholesale - Serbia Exports

183

185

151

180

191

54

52

56

67

68

501

555

411

476

477

134

127

86

128

125

872

919

703

850

861

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Retail Foreign assetsWholesale Exports

*Including internal sales (9M 2016: around 9.2 thousand tons; 9M 2015: around 13.7 thousand tons)

16

Financial Indicators

Net Profit RSD bn

-30% -24%

• Prices of oil and petroleum products

6.0

3.7

0.3

2.9

4.5

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

10.9

7.7

9M2015

9M2016

17

Financial Indicators

EBITDA RSD bn

-30% -17%

• Adverse impact of oil prices (Urals – decrease of 27% compared to 9M in 2015)

11.3

14.2

3.8

9.4

9.3

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

32.3

22.5

9M2015

9M2016

18

Financial Indicators

OCF RSD bn

-50% -18%

• Smaller inflows - Low prices of petroleum products

• Larger outflows - Higher liabilities to the state - Higher liabilities to suppliers (oil type changes and payment currency change)

11.7

15.0

3.6

5.0

9.6

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

36.0

18.2

9M2015

9M2016

19

Financial Indicators

CAPEX RSD bn

-24% Investment by segment RSD bn

• Largest investments in Exploration and Production

• Prioritisation of the investment portfolio

19.0

14.5

9M2015

9M2016

74%

2% 9%

4%

9%

2% Exploration andProductionServices

Refining

Sales andDistributionEnergy

CorporateCentre

20

Operational Efficiency Improvement

Effect of operational efficiency improvement measures on EBITDA RSD bn

2.0

0.6

2.9

0.6 0.7

0.8

7.7 7.7

5.7

1.3

1.3

1.1

0.2 0.2

0.0 0.1

0.0 0.5 0.9

0.9

2.2 0.8

2.9 0.7

0.7 1.3 8.6

1.3 9.9

6.8

Explorationand

Production

Services Refining Sales andDistribution

Energy CorporateCentre

(functions)

NIS 2016Estimation

Damageprevented

Total NIS2016

Estimation

Realisationin 9M of

2016

Measures (BP, QPR1, QPR2, QPR3) Damage prevented Potential

73%

21

Bank indebtedness

Total bank debt USD mn

+6% Total bank indebtedness USD mn

+5%

201 25

41 4 86 32 52 86 105

392 430

330 264 358

430 560 499

518 527

200 155

116 99

94 82

72 73

71 70

793 611

446 403

455 598

664 623

676 702

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30.09.'16

Short-term Medium-term Long-term

233 33 13 14 34 28 12 10 4 6

793 611

446 403

455 598 664

623 676 702

1,026 644

458 418

489 626

675 633 680 708

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30.09.'16

Letters of credit Loans

Debt structure: USD 59% EUR 37% Other 4%

GPN loan as at 30.09.2016 – EUR 314 mn (-10%)

22

Benchmarking

EBITDA margin (%) EBITDA/FTE (thousand USD) Daily sales (t/day)

Share of light products (%) OPEX ($/BOE)

32.1

19.8

16.8

16.7

7.2

18.5

69.2

37.6

25.2

21.7

6.3

32.0 8.4

7.0 6.8

5.8 5.8 5.5

6.6

87.4

74.8

74.4

73.1

72.3

76.4

5.7 1.2

12.2

11.8

7.0

6.5

N/A

9.4

3. 4.

4. 3.

3. 2.

23

∆ Average price of Urals oil is lower than the macro assumption in the Business Plan

∆ Limited possibility of long-term borrowing

∆ Adverse impact of the “grey” market

∆ Positive net result

∆ Output of oil and gas over and above the plan even with the decrease in the volume of investment

∆ Increase in sales

∆ Major overhaul at POR completed successfully

24

Disclaimer

This presentation has been prepared by NIS a.d. Novi Sad (the “Company”), and comprises the slides for a presentation to investors concerning NIS

Group. Presentation does not constitute or form part of any offer or invitation, or any solicitation of any offer to sell or purchase or subscribe for, any

shares or other securities representing shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis

of, or be relied on in connection with, any contract or investment decision.

Any viewer of this presentation considering a purchase of such securities is hereby reminded that any such sale or purchase should be made solely on

the basis of the information contained in other publicly available documents and will be subject to the restrictions set out therein. No reliance may be

placed for any purposes whatsoever on the information contained in this presentation, or any other material discussed at any presentation or on its

completeness, accuracy or fairness. The information in this presentation should not be treated as giving investment advice or recommendation. All

reasonable measures are taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and

reasonable. However, the contents of this presentation have not been adopted by the corporate body’s of Company. Accordingly, no representation or

warranty, express or implied, is made or given by or on behalf of the Company or any of its members, directors, officers or employees or any other

person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this presentation. None of the Company

or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever

arising from any use of this presentation or its contents or otherwise arising in connection therewith.

The information in this presentation includes forward-looking statements. These forward-looking statements include all matters that are not historical

facts, statements regarding the Company’s and NIS Group’s intentions, beliefs or current expectations concerning, among other things, the NIS Group’s

results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company and NIS Group operate. By their

nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties to be set in other publicly

available documents, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you

that forward looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and

the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking

statements contained in this presentation. In addition, even if the NIS Group’s results of operations, financial condition and liquidity and the

development of the industry in which the Company and NIS Group operate are consistent with the forward-looking statements contained in this

presentation, those results or developments may not be indicative of results or developments in future periods. The information and opinions contained

in this presentation are provided as at the date of this presentation and are subject to change without notice.

No person is under any obligation to update or keep current the information contained herein.

By attending the presentation you confirm that you have read and understood foregoing limitations.