PRESENTATION FOR INVESTORS AND SHAREHOLDERS For Q2 2017

July 27th, 2017 Anton Federov Finance, Economics, Planning and Accounting Function

• Is-X-5 well was tested and put into trial production in the second interval. Ks-X-1, Ča-16 and Kiz-X-2 wells were drilled through.

• 3D seismic surveys have been completed in survey areas South Banat I and Turija III. 3D seismic data acquisition started in survey area Morović.

• Testing of well Тeremia-1000 in block Ex-7.

• For the first time FHF works were a success in the fields Majdan and Bramalj, in the outlook there are around 6 additional FHF and new drilling.

• A new compressor unit was installed in KS Kp facility - test run pending.

• There has been a reorganization of production plant separation of production process from preparation and dispatch process.

2

NIS in Q2 2017 Exploration and Production

3

NIS in Q2 2017 Refining

• Refining of new crude brand - Novy Port.

• Repair of Alkilation unit and SARU.

• Works started at the job site of the Bottom-of-the-Barrel project.

• EPCM Contractor selected for WP 2 for Bottom-of-the-Barrel project.

• Preparations are u/w to repair С-200 and С-2400.

• Lean tool implementation started within OMS process.

• G-Drive premium fuel sale started at NIS PETROL petrol stations (18 PS).

• Start of implementation of “Together on the Road” Loyalty Programme in Bulgaria and Bosnia-Herzegovina

• Implementation of new organisational chart - wholesale channel

• “Orfej“ system kicks off in Romania

• New products in non-fuel goods range start selling: bitumen stripes and bitumen mass

4

NIS in Q2 2017 Sales and Distribution

• Negotiations are u/w to build small power plant Novo Miloševo as per model BOOT.

• Feasibility study is complete and construction permit has been granted for Velebit 3 SP.

• commercial sale of gas started from the CNG production in “Ostrovo” deposit.

• Factory tests are complete of equipment for CNG “Žarkovo 2“.

• Selection of optimum power for small power plant Turija II is u/w, as well as drafting design documents for Blok’s IC approval.

• Contracted scope of trade in electricity is 2.47 TWh.

5

NIS in Q2 2017 Energy

Exchange rate USD/RSD

+4% Price of crude oil type Urals RCMB, $/bbl

+33%

Macroeconomic indicators Stable exchange rate, higher oil price

6

105

110

115

120

I II III IV V VI

2016

Average 2016

2017

Average 2017

20

30

40

50

60

I II III IV V VI

2016

Average 2016

2017

Average 2017

HSE indicators Positive trend

7

Transparency increase LTIF RAR

6M 2016 6M 2017

26,043 28,719

452 478

44 43

4 3 Major incidents

Medium Incidents

Minor incidents

Near miss incidents

1.67 1.30

1.62

6M 2016 6M 2017 Plan2017

2017

Plan2017

2016

0.21

0.30

0.16

6M 2016 6M 2017 Plan2017

2017

Plan2017

2016

3%

25% 24%

47%

Key indicators NIS Group

8

Q2 2017

Q2 2016

∆ Key indicators Unit of

measurement 6М

2017 6М 2016

∆

48.7 43.9 +11% Urals $/bbl 50.5 38.1 +33%

57.1 46.0 +24% Revenue from sales bln. RSD 107.4 81.4 +32%

7.0 2.9 +2x Net profit bln. RSD 12.4 3.1 +4x

11.4 9.4 +21% EBITDA bln. RSD 22.5 13.2 +71%

14.4 5.0 +190% OCF bln. RSD 18.9 8.6 +121%

44.7 43.5 +3% Calculated commitments related to public revenue bln. RSD 80.3 76.3 +5%

349 366 -5% Oil and gas production thousand TOE 692 743 -7%

879 974 -10% Crude oil and semi-finished products refining volume thousand tons 1,645 1.750 -6%

835 850 -2% Total turnover of petroleum products thousand tons 1,552 1.553 0%

5.3 4.5 +18% CAPEX bln. RSD 10.0 9.1 +9%

636 680 -6% Total indebtedness to banks (the overall debt to banks + letters of credit)

mln. USD 636 680 -6%

Trends in the motor fuel market 6M 2017/6M 2016

9

Regional consumption of motor fuels is on the rise: - macroeconomic trends - fuel consumption growth in the transport

sector, processing industries, construction industry

Serbia

• Diesel consumption growth: — better results in the construction and processing

industries — transport growth

• Diesel fuel consumption is legal again due to stepped up control of base oil import

Slovenia

3.2%

Croatia

2.0%

Bosnia and Herzegovina

1.5% Bulgaria

2.6%

Romania

1.9%

Hungary

3.0%

Serbia 2.1%

Market share – Serbia Petroleum products market

• The total consumption of petroleum products is on the rise

• Growth in consumption of jet fuel, straight-run gasoline, and motor gasoline, diesel, heating fuel, heavy fuel oil and lubricants:

— lower prices

— infrastructure works

— LPG and bitumen consumption reduced

10

3.2%

Volume of petroleum products market, thousand tons

NIS sale is on the rise, slower than market growth, though. Growing imports of motor and naphtha and diesel negatively impact NIS market share.

421 (26%)

466 (28%)

1,203 (74%)

1,209 (72%)

1,624 1,675

6M 2016 6M 2017estimate

NIS

Others

Market share – Serbia Retail market

• Retail market growth by 2.6%

• Fuel consumption growth owing to: — transport growth

— increase in the number of vehicles

— increase in transit traffic

11

2.6% Retail market, thousand tons

NIS retail market share is steady.

431 (57%)

443 (57%)

329 (43%)

337 (43%)

760 780

6M 2016 6M 2017estimate

NIS

Others

Market share – region Q2 2017/Q2 2016

12

Bosnia and Herzegovina

Number of PS: 35* Total market %: 11.7% Retail market %: 10.7%

Romania

Number of PS: 18 Total market %: 0.9% Retail market %: 1.4%

Bulgaria

Number of PS: 35 Total market %: 5.5% Retail market %: 4.4%

*and two petrol stations in DODO operating model

Operation indicators Exploration and Production

• Volume of oil and gas production in the second quarter of 2017 was down by 7% compared with same period previous year.

• 24 exploitation wells were drilled through and put into operation

13

Oil and gas production, thous. TOE -7%

493 460

223 211

27 22

743 692

6M 2016 6M 2017

Angola

Domesticgas

DomesticCrude

Operation indicators Refining

• The volume of refining is a result of meeting the needs of the market, available stocks and optimisation of the basket of raw materials

14

-6 % Refining of crude oil and semi-finished products, thousand tons

475 434

1,171 1,092

105 119

1,750 1,645

6M 2016 6M 2017.

Semi-FinishedProducts

Imported Crude

Domestic Crude

Operation indicators Sales and Distribution

• Retail in Serbia – growth 2%

• Wholesale in Serbia – drop 2%

• Export – drop 7%

• Foreign assets – growth 18%

15

0% Sales volume, thousand tons

331 338

123 145

886 871

214 198

1,553 1,552

6M 2016 6M 2017

Export

Wholesale -Serbia

Foregin assets

Retail - Serbia

*Including the internal sales volume

Financial indicators Net profit

• Growth in the price of crude oil and petroleum products

• Measures to increase operational efficiency and decrease costs

• Positive foreign exchange differences

16

Net profit, bln. RSD 4x

3.1

12.4

6M 2016 6M 2017.

Financial indicators EBITDA

• Growth in the price of crude oil and petroleum products

• Measures to increase operational efficiency and decrease costs

17

71% EBITDA, bln. RSD

13.2

22.5

6M 2016 6M 2017.

Financial indicators OCF

• Higher inflows — higher prices of petroleum products

— higher EBITDA

18

+121% OCF, bln. RSD

8.6

18.9

6M 2016 6M 2017

Financial indicators CAPEX

19

+9% CAPEX, bln. RSD CAPEX by segment

9.1 10.0

6M 2016 6M 2017

71%

2%

21%

3% 1% 2% Exploration andproductionServices

Refining

Sales andDistributionEnergy

Measures to increase operational efficiency Effect on EBITDA in Q2 2017 is 2.8 bln. RSD

20

6.0

0.7

1.2

1.1

2.0 0.4

0.5

0.9 6.0

0.7 6.7

2.8

Exploration andProduction

Services Refining Sales andDistribution

Energy CorporateCentre

NIS2017

estimate

Damagepreventedestimate

TotalNIS2017

estimate

6M 2017

Measures Damage prevented

Bank indebtedness Structure of loan portfolio in terms of maturity and currency

21

278

275

28

47

271

91

153

186

116

53

516

336

418

356

184

507

511

477

543

581

793

611

446

403

455

598

664

662

659

0

12/31/'09

12/31/'10

12/31/'11

12/31/'12

12/31/'13

12/31/'14

12/31/'15

12/31/'16

3/31/'17

6/30/'17

up to 1 year

over 1 year

-4%

Debt to banks, mln. USD

233

33

13

14

34

28

12

3

4

2

793

611

446

403

455

598

664

662

659

634

1.026

644

458

418

489

626

675

666

664

636

12/31/'09

12/31/'10

12/31/'11

12/31/'12

12/31/'13

12/31/'14

12/31/'15

12/31/'16

3/31/'17

6/30/'17

Letters of credit

Debt to banks

-4%

Bank indebtedness, mln. USD

Debt structure: USD 50% EUR 49% Other 1%

GPN Loan -8% 279 mln. EUR

34.2

22.9

21.0

19.8

15.8

22.7

Comparative analysis

22

EBITDA margin(%) 3. EBITDA/FTE* (thous. USD) 4. Daily turnover (t/day) 4.&2.

Share of light products (%) 4. OPEX ($/boe) 2.

Report data for Q1 2017, except for NIS (6M 2017) *Data for Q1 2017

60.7

25.8

25.5

16.8

8.0

27.4

86.8

84.9

77.7

74.8

72.3

79.3 10.5

8.9

5.7

5.9

N/A

1.1 6.8

8.0

8.1 7.1 7.0

5.8 5.6

4.7

6.3

Wrap up

23

Limited opportunities for getting long-terms loans

Intensified competitors’ activities

Growth of financial indicators

Meeting the oil and gas extraction plan

Settlement of Angola taxes issue in progress

Disclaimer

This presentation has been prepared by NIS j.s.c. Novi Sad ("Company") and consists of slides containing the information about NIS Group for the purpose of presentation to investors. This presentations does not represent any bid or invitation to bid, or any encouragement for submitting a bid for the sale or purchase or registration of shares or other securities of the Company, and furthermore, this presentation or any part of it or the fact that this presentation is made available or distributed, may not represent a basis for any contract or investment decision and for these purposes it cannot be relied on.

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The information in this presentation contains statements on uncertain future events. The Statements on uncertain future events include the statements that are not historical facts, statements related to the intentions of the Company and NIS Group, beliefs and current expectations with regard to, inter alia, the performance results of NIS Group, financial situation and liquidity, prospects, growth, strategies and the areas of industry in which the NIS Group operates. In view of the fact that they refer to the events and depend on the circumstances which may or may not happen in the future, statements on uncertain future events by their nature imply risks and uncertainty, including but not limited to the risks and uncertainties identified by the Company and NIS Group in other publicly available documents. The Company warns that there is no guarantee that the statements on uncertain future events will happen in the future and that the actual performance results, financial situation and liquidity, as well as the development of the area of industry in which the Company and NIS Group operate may significantly differ from those presented or assumed in the statements on uncertain future events contained in this presentation. Additionally, even if the performance results of NIS group, its financial liquidity and liquidity, as well as the development of the area of industry in which the Company and NIS Group operate come to be in accordance with the statements given here on uncertain future events, such results and development are not indicative for the results and development in the coming periods. The information contained in this presentation is given on the date hereof and is subject to changes without notice.

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