Borets International Limited

Non-deal Roadshow Presentation

January 2017

BY ATTENDING ANY MEETINGWHERE THIS PRESENTATION (AS DEFINED BELOW) IS MADE, OR BY READING ANY PART OF THIS PRESENTATION, YOU ACKNOWLEDGE AND AGREE TO BE BOUND BY THE FOLLOWING:

THIS PRESENTATION IS STRICTLY CONFIDENTIAL TO THE RECIPIENT, MAY NOT BE DISTRIBUTED TO THE PRESS OR ANY OTHER PERSON, AND MAY NOT BE REPRODUCED IN ANY FORM. FAILURE TO COMPLY WITH THIS RESTRICTION MAY

CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS. “PRESENTATION” MEANS THIS DOCUMENT AND ANY ORAL PRESENTATION MADE, ANY QUESTION AND ANSWER SESSION CONDUCTED AND ANY OTHER INFORMATION DISCUSSED

ORALLY DURING ANY INVESTOR MEETING OF THE KIND REFERRED TO BELOW, INCLUDING WITHOUT LIMITATION ANY INFORMATION RELATING TO ANY PLANNED OR CONTEMPLATED TRANSACTION (A “TRANSACTION”) INVOLVING BORETS

INTERNATIONAL LIMITED AND ITS AFFILIATES (THE “COMPANY”).

THE MATERIALS COMPRISING THIS PRESENTATION HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR USE BY THE COMPANY’S MANAGEMENT AT INVESTOR MEETINGS WITH A LIMITED NUMBER OF INSTITUTIONAL INVESTORS WHO HAVE

AGREED TO ATTEND SUCH MEETINGS AND TO BE SUBJECT TO OBLIGATIONS TO MAINTAIN THE CONFIDENTIALITY OF THIS PRESENTATION.

THE CONTENTS OF THIS PRESENTATION HAVE NOT BEEN INDEPENDENTLY VERIFIED BY OR ON BEHALF OF THE COMPANY OR ANY OF ITS ADVISERS (THE “ADVISERS”), OR BY ANY OTHER INDEPENDENT THIRD PARTY. NO REPRESENTATION,

WARRANTY OR UNDERTAKING, EXPRESS OR IMPLIED, IS MADE BY ANY OF THE COMPANY, THE ADVISERS, ANY OF THEIR RESPECTIVE AFFILIATES OR ANY OF THEIR OR THEIR AFFILIATES’ RESPECTIVE MEMBERS, DIRECTORS, OFFICERS OR

EMPLOYEES AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTNESS OF THE INFORMATION OR THE OPINIONS CONTAINED HEREIN. NONE OF THE COMPANY OR THE ADVISERS NOR ANY OF

THEIR RESPECTIVE MEMBERS, DIRECTORS, OFFICERS, EMPLOYEES, AFFILIATES, ADVISERS OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER (IN NEGLIGENCE OR OTHERWISE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE

OF THIS PRESENTATION OR ITS CONTENTS OR OTHERWISE ARISING IN CONNECTIONWITH THE PRESENTATION.

THIS PRESENTATION AND INFORMATION CONTAINED THEREIN DO NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES REFERRED TO HEREIN IN ANY JURISDICTION

IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION, EXEMPTION FROM REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY JURISDICTION. NO PART OF THIS PRESENTATION, NOR

THE FACT OF ITS DISTRIBUTION, SHOULD FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH, ANY CONTRACT OR COMMITMENT OR INVESTMENT DECISION WHATSOEVER. ANY SUCH OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN

OFFER TO BUY OR ACQUIRE SECURITIES SHALL BE MADE ONLY BY REFERENCE TO A PROSPECTUS OR OTHER OFFERING DOCUMENT TO BE ISSUED BY THE COMPANY IN CONNECTION WITH ANY TRANSACTION AND ANY DECISION TO PURCHASE OR

SUBSCRIBE FOR SECURITIES IN CONNECTION WITH ANY TRANSACTION SHOULD BE MADE SOLELY ON THE BASIS OF THE INFORMATION CONTAINED IN SUCH INTERNATIONAL OFFERING CIRCULAR. THIS PRESENTATION DOES NOT CONSTITUTE A

RECOMMENDATION REGARDING THE SECURITIES OF THE COMPANY.

IN ANY EEA MEMBER STATE THAT HAS IMPLEMENTED EU DIRECTIVE 2003/71/EC, AS AMENDED (TOGETHER WITH ANY APPLICABLE IMPLEMENTING MEASURES IN ANY MEMBER STATE, THE “PROSPECTUS DIRECTIVE”), THIS PRESENTATION IS

ADDRESSED SOLELY TO QUALIFIED INVESTORS (WITHIN THE MEANING OF ARTICLE 2(1)(E) THE PROSPECTUS DIRECTIVE) IN THAT MEMBER STATE.

IN ADDITION, IN THE UNITED KINGDOM, THIS PRESENTATION IS ONLY BEING DISTRIBUTED TO AND DIRECTED AT (I) PERSONS WHO ARE OUTSIDE THE UNITED KINGDOM OR (II) INVESTMENT PROFESSIONALS FALLING WITHIN ARTICLE 19(5) OF THE

FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE “ORDER”) OR (III) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY LAWFULLY BE COMMUNICATED, FALLING WITHIN ARTICLE 49(2)(A) TO

(D) OF THE ORDER (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS “RELEVANT PERSONS”). ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS COMMUNICATION RELATES WILL ONLY BE AVAILABLE TO AND WILLONLY BE

ENGAGED IN WITH RELEVANT PERSONS. ANY PERSON WHO IS NOT A RELEVANT PERSON SHOULD NOT ACT OR RELY ON THIS DOCUMENT OR ANY OF ITS CONTENTS.

THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OF AMERICA. ACCORDINGLY, NEITHER THIS PRESENTATION NOR ANY PART OR COPY OF IT MAY BE TAKEN OR TRANSMITTED INTO THE

UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, OR TO ANY “US PERSON” (AS THAT TERM IS DEFINED IN THE

US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)) EXCEPT IN RELIANCE ON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY

CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS. THE COMPANY’S SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OF AMERICA

EXCEPT PURSUANT TO AN EXEMPTION FROM, OR A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

NEITHER THIS PRESENTATION NOR ANY PART OR COPY OF IT MAY BE TAKEN OR TRANSMITTED INTO AUSTRALIA, CANADA OR JAPAN OR DISTRIBUTED DIRECTLY OR INDIRECTLY IN CANADA OR DISTRIBUTED OR REDISTRIBUTED IN JAPAN OR TO

CANADIAN PERSONS OR TO ANY SECURITIES ANALYST OR OTHER PERSON RESIDENT IN ANY OF THOSE JURISDICTIONS. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF AUSTRALIAN, CANADIAN OR JAPANESE

SECURITIES LAW. THE DISTRIBUTION OF THIS PRESENTATION IN OTHER JURISDICTIONS MAY BE RESTRICTED BY LAW AND PERSONS INTO WHOSE POSSESSION THIS PRESENTATION COMES SHOULD INFORM THEMSELVES ABOUT, AND OBSERVE,

ANY SUCH RESTRICTIONS. THE COMPANY HAS NOT REGISTERED AND DOES NOT INTEND TO REGISTER ANY OF ITS SECURITIES UNDER THE APPLICABLE SECURITIES LAWS OF CANADA, AUSTRALIA OR JAPAN.

THIS PRESENTATION IS NOT A PUBLIC OFFER OR ADVERTISEMENT OF SECURITIES IN THE RUSSIAN FEDERATION, AND IS NOT AN OFFER, OR AN INVITATION TO MAKE OFFERS, TO PURCHASE, SELL, EXCHANGE OR TRANSFER ANY SECURITIES IN THE

RUSSIAN FEDERATION, AND MUST NOT BE PASSED ON TO THIRD PARTIES OR OTHERWISE MADE PUBLICLY AVAILABLE IN THE RUSSIAN FEDERATION.

THIS PRESENTATION IS NOT DIRECTED AT, OR INTENDED FOR DISTRIBUTION TO OR USE BY, ANY PERSON OR ENTITY THAT IS A CITIZEN OR RESIDENT OR LOCATED IN ANY LOCALITY, STATE, COUNTRY OR OTHER JURISDICTIONWHERE SUCH

DISTRIBUTION, PUBLICATION, AVAILABILITY OR USE WOULD BE CONTRARY TO LAW OR REGULATION OR WHICHWOULD REQUIRE ANY REGISTRATION OR LICENSING WITHIN SUCH JURISDICTION.

THE INFORMATION CONTAINED IN THIS PRESENTATION DOES NOT CONSTITUTE A PUBLIC OFFER UNDER ANY APPLICABLE LEGISLATION, OR AN OFFER TO SELL OR SOLICITATIONOF AN OFFER TO BUY ANY SECURITIES.

THE INFORMATION AND OPINIONS CONTAINED IN THIS PRESENTATION (INCLUDING WITHOUT LIMITATION ANY FORWARD-LOOKING STATEMENTS AS REFERRED TO BELOW) ARE PROVIDED AS AT THE DATE OF THIS PRESENTATION AND ARE SUBJECT

TO CHANGE WITHOUT NOTICE. MATTERS DISCUSSED IN THIS PRESENTATION MAY CONSTITUTE FORWARD-LOOKING STATEMENTS.

FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING PLANS, OBJECTIVES, GOALS, STRATEGIES, FUTURE EVENTS OR PERFORMANCE, AND UNDERLYING ASSUMPTIONS AND OTHER STATEMENTS, WHICH ARE OTHER THAN

STATEMENTS OF HISTORICAL FACTS. THE WORDS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTENDS”, “PLAN”, “ESTIMATE”, “AIM”, “FORECAST”, “PROJECT”, “WILL”, “MAY”, “MIGHT”, “SHOULD”, “COULD” AND SIMILAR EXPRESSIONS (OR THEIR NEGATIVE)

IDENTIFY CERTAIN OF THESE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS REGARDING: STRATEGIES, OUTLOOK AND GROWTH PROSPECTS; FUTURE PLANS AND POTENTIAL FOR FUTURE GROWTH;

LIQUIDITY, CAPITAL RESOURCES AND CAPITAL EXPENDITURES; GROWTH IN DEMAND FOR PRODUCTS; ECONOMIC OUTLOOK AND INDUSTRY TRENDS; DEVELOPMENTS OF MARKETS; THE IMPACT OF REGULATORY INITIATIVES; AND THE STRENGTH

OF COMPETITORS. THE FORWARD-LOOKING STATEMENTS IN THIS PRESENTATION ARE BASED UPON VARIOUS ASSUMPTIONS, MANY OF WHICH ARE BASED, IN TURN, UPON FURTHER ASSUMPTIONS, INCLUDING WITHOUT LIMITATION,

MANAGEMENT’S EXAMINATION OF HISTORICAL OPERATING TRENDS, DATA CONTAINED IN THE COMPANY’S RECORDS AND OTHER DATA AVAILABLE FROM THIRD PARTIES. THESE ASSUMPTIONS ARE INHERENTLY SUBJECT TO SIGNIFICANT

UNCERTAINTIES AND CONTINGENCIES WHICH ARE DIFFICULT OR IMPOSSIBLE TO PREDICT AND ARE BEYOND ITS CONTROL AND IT MAY NOT ACHIEVE OR ACCOMPLISH THESE EXPECTATIONS, BELIEFS OR PROJECTIONS. IN ADDITION, IMPORTANT

FACTORS THAT, IN THE VIEW OF THE COMPANY, COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DISCUSSED IN THE FORWARD-LOOKING STATEMENTS INCLUDE THE ACHIEVEMENT OF THE ANTICIPATED LEVELS OF

PROFITABILITY, GROWTH, COST AND ITS RECENT ACQUISITIONS, THE TIMELY DEVELOPMENT OF NEW PROJECTS, THE IMPACT OF COMPETITIVE PRICING, THE ABILITY TO OBTAIN NECESSARY REGULATORY APPROVALS, AND THE IMPACT OF

GENERAL BUSINESS AND GLOBAL ECONOMIC CONDITIONS. PAST PERFORMANCE SHOULD NOT BE TAKEN AS AN INDICATION OR GUARANTEE OF FUTURE RESULTS, AND NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IS MADE

REGARDING FUTURE PERFORMANCE. THESE FORWARD LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE AS OF WHICH THEY ARE MADE, AND NONE OF THE COMPANY, THE ADVISERS OR ANY OF THEIR RESPECTIVE MEMBERS, DIRECTORS,

OFFICERS, EMPLOYEES, AGENTS OR ADVISERS INTEND OR HAVE ANY DUTY OR OBLIGATION TO SUPPLEMENT, AMEND, UPDATE OR REVISE ANY OF THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION, OR TO REFLECT ANY

CHANGE IN THE COMPANY’S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS, OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS ARE BASED OR TO UPDATE OR TO KEEP CURRENT ANY OTHER

INFORMATIONCONTAINED IN THIS PRESENTATION.

Disclaimer

2

Presenting Team

Christopher Mackenzie

Chairman of the Board of

Directors

Previous positions include:

‒ Chairman of Brunswick-UBS

‒ President and CEO of Trizec Properties

‒ President and CEO of GE Capital Europe, GE Officer

Natalia Bryantseva

Head of Investor Relations

Current positions include:

‒ Managing Director of Eastlink Lanker Plc (UK)

‒ Director of Tangent Fund Limited

Holds a law degree from Ural Academy of Government Service,

Chelyabinsk, Russia and a Business Administration degree from

Huron University, London, UK

Daniil Shapirovsky

Chief Financial Officer

Previous positions include:

‒ Head of Financial Reporting Projects at Korus Consulting

‒ Head of Corporate Reporting at Borets

Graduated from Moscow State University

3

PresentersJoined Borets

Experience

2005

2005

2006

Table of Contents

I. Key Credit Highlights 5

II. Company Overview 7

III. Market Overview and Borets’ Leadership Position 12

IV. Financial Overview 24

Appendices

4

I. Key Credit Highlights

Key Credit Highlights

Source: Company Information

Notes:

1. ESPs: Electrical Submersible Pumps

2. After Baker Hughes and Schlumberger

3. PMM: Permanent Magnetic Motor

Dominant global market share in ESPs1 - #1 manufacturer by volume; #1 service

company by installed base; #3 global market share by revenues21

Pioneer in ESP technology since 1952. More recently, Borets has introduced

PMM3, Wear Resistant Stages and Linear Motor technologies2

Global presence - well placed to grow as activity picks up3

Plays in the operating cost segment (not capital expenditure) of the oil

production lifecycle – hence, low oil price correlation5

Vertical integration across manufacturing, rental and service (including

3rd party pumps)4

Strong operational excellence with an unparalleled safety track record7

6

A pioneer in

the sector

Robust financial performance due to cost controls, deleveraging business

profile and strong pipeline visibility; record EBITDA margin in 20166

II. Company Overview

Key Facts

8

# 1 ESP manufacturer worldwide

12,000+ ESP units manufactured annually

# 1 Russian / # 3 global ESP sales position

# 1 ESP service company worldwide

c.46,000 ESPs installed base

22,000+ serviced wells

500+ clients worldwide

Established track record – dates back to 1897

Key Clients by Revenue

Established in 1897, headquartered in Dubai

Leading vertically-integrated global manufacturing company providing:

– Artificial lift systems, specialising in ESPs (mainly onshore wells)

– Related aftermarket services

#500+ clients served globally

Operates 11 manufacturing facilities in 5 countries, 25 service centers in

10 countries and 2 R&D centers

9,000 employees with 3,500 dedicated field personnel

LTM Sep-16 Revenue / EBITDA: USD469m / USD134m (29%)

ESP Market Share by Revenue, 2016E (USD)

Ownership Structure

Borets – Global Leader in Growing Artificial Lift

Market

Company Overview

Russian Clients Length International Clients Length

19 years 12 years

19 years 10 years

15 years 9 years

14 years 5 years

14 years 3 years

12 years 2 years

Source: Company Information

Note:

1. Two beneficiaries of Tangent Fund: Gregory Schtulberg and Mark Shabad

9

Tangent Fund92%

European Bank for Reconstruction and Development ("EBRD")

5%

International Finance Corporation ("IFC")

3%

1

Baker Hughes

26%

Schlumberger22%

Borets11%

GE 8%

Novomet4%

Alkhoraef5%

Other 24%

10

Borets: 100+ Years of History

1897 1952 1995 2002 2006 2012 201420082007

• Acquired Lemaz

manufacturing

facility of stages for

pumps

• Acquired 100% of

Weatherford’s ESP

Business unit

2015

• Weatherford

acquired 33% of

company’s shares

• Acquired Lysva motor

manufacturing facility

• Construction of the

Kurgan cable facility

• Construction of the

Stary Oskol

manufacturing facility

of stages for pumps

• Founded as a

compressor factory

• Developed

metal injection

moulding (MIM)

• Introduced PMM-

PCP1 technology to

North America

• Began service

operations in

Indonesia, Congo

and Colombia

• First in Russia to start

volume manufacturing

of Submersible

Centrifugal Pumps

2005 2011

• Began service

operations in Serbia

• Group’s manufacturing

facility in Moscow

acquired by shareholders

2016

• Introduced WR22

ESP system for

‘harsh’ well

conditions targeted

at the US

• Serial production of

submersible motors

using “permanent

magnet” principle

Technological

Advancement

Geographical

Expansion

Industrial

Expansion

• Production of

standard and high

temperature resistant

cables

• Began service

operations in Oman

• Borets bought back 38.5%

of equity from Weatherford

• EBRD and IFC become

shareholders of Borets

• Began service operations in

USA, Canada, Venezuela,

Brazil, Egypt, Shanghai

and Slovakia

2013

Shareholder

Changes

Note:

1. PMM-PCP: Permanent Magnetic Motor - Progressing Cavity Pumps

2. WR2: Wear Resistant Wide Range

Facilities / Service Locations Globally

11

A Vertically Integrated Global Platform

14

1012

13

7

5 6

4

20

19

1817

16 30

29

31

33 34

35 36

26

2

15 28

2223

2132

37

38

1

25 Service Centres11 Manufacturing Facilities:

− Stages

− Cable

− Assembly

− Motor

N. America

1. Tulsa (USA, OK)

2. Midland (USA, TX)

3. Tulsa (USA, OK)

4. Nisku (Canada)

5. Redcliff Canada

6. Estevan (USA, SK)

7. Tulsa USA (USA, OK)

8. Midland USA (USA, TX)

9. Breckenridge (USA, TX)8

S. America

10. Maracaibo (Venezuela)

11. Maracaibo (Venezuela)

12. Cundinamarca (Colombia)

13. Villavicencio (Colombia)

14. Aracaju (Brazil)

Europe

15. ZTS-Kabel (Slovakia)

16. Zrenjanin (Serbia)

Africa

20. Pointe-Noire (Congo)

MENA

17. Alexandria (Egypt)

18. Al-Kuwait (Kuwait)

19. Suhar (Oman)

Russia

21. Borets-NEO

22. Spetsialnye Tekhnologii

23. Lemaz

24. Oktyabersky

25. Buzuluk

26. Ulfa

27. Moscow

28. Oskol

29. Krasnodar

30. Neftekumsk

31. Usinsk

32. Lysva

33. Nefteyugansk

34. Muravlenko

35. Pyt-Yah

36. Nizhnevartovsk

37. Kurgan

24

Asia

38. Shanghai (PRC)

25

2 R&D Centres

3

27

11

9

III. Market Overview and

Borets’ Leadership Position

Borets29%

Others71%

Borets45%

Others55%

Market Overview - Summary

13

95% of global oil wells rely on Artificial Lift Technology to increase pressure within

reservoirs and achieve higher production

While ESP constitutes 16% of Artificial Lift units in operation, it is the most valuable type

of technology accounting for c.38% of revenues

Russia is the largest market for ESPs with >60% share globally

Borets produces 45% and 29% of Russian and global ESP units respectively

ESP units in operation have continued to grow despite the current industry downturn

and are expected to expand further at 5% CAGR between 2015-2020 according to

Douglas Westwood

ESP Unit Share

Global

Russia

Borets’

Strategy

1. Maintain market share in Russia

2. Grow market share in existing international markets

3. Selectively enter new markets

4. Maintain global technological leadership

Source: Company Information, Douglas Westwood

95% of Wells Globally Rely on Artificial Lift

Technology

Distribution of Artificial Lift Market by Revenues, 2016

Distribution of Artificial Lift Market by Units, 2016Main Types of Artificial Lift

PCP 9%

Other 9%

SRP 44%

ESP 38%

Sucker Rod Pump

(SRP)

Electric Submersible

Pump (ESP)

Progressing Cavity

Pump (PCP)

Source: Company Information, Douglas Westwood

Borets is the largest pure-play provider in global

Artificial Lift

SRP

• Consists of a pumping unit on the surface, a downhole pump and rods connecting two

pumping units

• Used predominantly onshore, on low volume (typically <200b/d) marginal wells

• Old technology, vulnerable to Borets’ new linear model

ESP

• Comprising of an electric motor, gas separator, multi-stage pump near the bottom of a

well bore, power cable, motor controller transformers and power source at the surface

• High volume and depth capabilities

• Power and capital intensive, but expense is offset by superior drawdown

PCP

• Utilise a rotating helix method to allow ‘heavy’ oil in at the base and be pushed upwards

• Used in medium to shallow well depths

• Low maintenance costs, and are particularly suited to use in heavy oil applications

14

PCP 7%

Other 11%

SRP 67%

ESP 16%

Borets is the Largest Player in Russia with Growing

Presence Globally

15

Distribution of Revenue by Major ESP Suppliers and Geography (2016)

Source: Company Information

0%

20%

40%

60%

80%

100%

20% 40% 60% 80% 100%0% 10% 30% 50% 70% 90%

ES

P M

arke

t S

har

e b

y C

om

pan

y (U

SD

)

ESP Unit Share by Geography (%)

OthersOthers

Others

Borets is the:

‒ #1 player in Russia with 29% market share

‒ #3 player globally with 11% market share, behind Baker Hughes and Schlumberger

OthersOthers

Market

27% 24% 15% 23% 11%

Russia

& CIS

N. America

& Europe

MENAS. & C.

America

Other

ESP market share by revenue >

Borets global share:

By revenue: 11%; By volume: 29%

Segmenting the Market Served by Borets

16

Global Wells(>1m wells)

Source: Company Information

Global Onshore Market Global Offshore market

Global Artificial Lift Market

ESP(c.161k units)

PCP(c.73k units)

SRP(c.693k units)

Other(109k units)

95% of all global

wells relies on

Artificial Lift

% of Artificial Lift Market:

By volume: 16%; By revenue: 38%

95%

Majority of ESP consumers are Borets’ clients:

0

200

400

600 Spend on ESP Equipment and Services, 2015

Represent existing Borets’ clients

USDm

Borets Plays in the Opex Part of the Oil Production

Lifecycle

Exploration Well

Construction

Completions Production Abandonment

17

Operating

ExpenditureCapital Expenditure

Source: Company Information, Broker Research

E&P operating expenditure has remained resilient relative to capex in the current oil price environment

Globally, unit operating costs on average are generally low (<USD30/bbl), which ensures most producing fields remain

economic even in a low oil price environment

Borets Offers Integrated Products and Services

Borets is the world’s only vertically integrated ESP provider, supplying complete ESP systems

ESP System Design and ConfigurationKey Products

18

Services

Application engineering

Commissioning, start-up and monitoring

Consignment warehouse

Field service and technical support

Leasing

Performance / failure / mean time between failure (MTBF) analysis

Remote well monitoring and data acquisition

Repair and testing of ESP downhole and surface equipment

Sales, service and support for ESP, Hydraulic pumping systems (HPS) and Variable

frequency drives (VFD)

Spare parts ordering and supply services

Submersible / surface equipment and cables servicing, repair and testing

Products

1. Stages

2. Gas handling units

3. Submersible motors

4. Motor seals and intakes

5. Filters

6. Surface equipment

7. Sensors and gauges

8. Cable

Borets’ Growing ESP Installed Base

19

Borets have increased their Installed Base at 3% CAGR between 2007-16, with 12,000+ ESP units manufactured annually

Service Agreements have grown at 6% CAGR over the same period

ESPs have an average run life between 2-5 years

1214 15

17 18 18 18 1920 21

3537 38

40 41 42 43 43 43

46

0

10

20

30

40

50

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Under Service Agreements with Borets Borets Worldwide Installed Base

CAGR: 3%

# of ESP (‘000s)

Source: Company Information

CAGR: 6%

Sector Outlook: Well Count Expected to Grow in-line

With Oil Price in the Future

20

Source: Douglas-Westwood, HSBC

1. Russian oil & gas industry is less sensitive to oil prices increase beyond USD29/bbl given the fiscal regime

Market focus on global oil demand / supply balances and compliance to recent supply cutback announcements

E&P capex spending expected to pick-up in 2017 post-significant cutbacks over last 2 years, both independents and

integrated players

Well count has increased with resurging oil prices in 2016 and is expected to grow further in line with oil price in the

future1

40

45

50

55

60

65

70

0

20

40

60

80

100

120

140

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

Tho

usan

ds

Historical Brent Forward Brent HSBC Brokers Average

USD/bbl

Brent Oil Price vs. New onshore wells drilled globally

Oil Wells Drilled (‘000)

New Oil Wells Drilled

Borets’ Strategy (1)

21

Borets’ business strategy is to:

Maintain market leadership in Russia by keeping close to our customers and increasing our presence in

Eastern Siberia

Continue to leverage new technology to expand sales with US majors

Build on our existing successful international platforms, e.g. Oman, Kuwait, Egypt and Colombia

Selectively enter new markets in which Borets is trialling equipment, e.g. Saudi Arabia, Iraq and Mexico

Capitalise on the inevitable fallout from the GE-BH merger and the acquisition of Novomet, especially in

the US

Strengthen the Borets Board of Directors with industry leaders to leverage their skills, experience and

contacts, e.g Pete Miller and Peter Goode

Borets’ Strategy (2): International Expansion

Opportunity

22

TOTAL ESP WELLS RENTAL ESP WELLS

Total

(‘000s) (‘000s)%

Total

(‘000s) (‘000s)%

Russia 97.0 44.0 45% 21.0 6.1 29%

Rest of the

World64.0 2.7 4% 19.0 0.6 3%

TOTAL 161.0 46.7 29% 40.0 6.7 17%

Borets powers 29% of the world’s ESP wells’ production. There is significant opportunity to grow internationally

Source: Company Information

Borets’ Strategy (3): Technological Leadership

23

PMM enhances electrical efficiency, with approximately 15-19% power saving according to trials by

Apache in Texas, GazProm Neft and TNK-BP

Borets has installed > 3,000 PMM driven ESPs worldwide, 5 times more than the only competitor

Borets is trialling Linear Motors with selected customers with a view to displacing SRPs with more flexible

down hole pumps, which replicate the rod pump action at greater depth and without requiring vertical wells

Borets has developed a unique metal injection molding production process for pump stages which

increases hardness (to extend pump life) and design definition (to accelerate flow)

Borets is the only manufacturer using this process and already over 100 WR2 pumps have been

delivered to customers

Permanent Magnet Motor (PMM)

Wear Resistant Wide Range (WR2)

Linear Motor

Borets’ ESP R&D have produced 3 uniquely successful product

developments, far exceeding competitors’ achievements

IV. Financial Overview

Key Financial Highlights

25

Real revenues increased by 6% CAGR between 2011-LTM Sep-16 supported by higher unit sales and driven

by contracted sales (>40%)

‒ Nominal revenues (LTM Sep-16: USD469m) have declined as compared to 2015 given Rouble depreciation

Services grew to 45% of revenues in LTM Sep-16 (vs. 38% in 2015), mitigating the impact of the oil price fall

EBITDA (LTM Sep-16: USD135m) has remained stable over the last 3 years despite the fall in nominal revenues

High EBITDA margin given the integrated business model which has further strengthened to 29% in LTM

Sep-16 driven by i) cost reduction initiatives and ii) growth in services and innovative products

Strong / resilient FCF profile; has seen limited drop vs. reduction in revenues given:

‒ Increasing margins maintaining EBITDA

‒ Ability to adjust capital expenditure to cash flows

Current trading has been strong with EBITDA margin increasing from 26% to 31%

Revenues

USA 29%

Colombia 18%Egypt 16%

Serbia 9%

Canada 8%

Venezuela 7%

Kuwait 5%

Oman 2%Brazil 2% Other 3%

Growing “Real” Revenues Growing Service Share of Revenue

LTM Sep-16 International Revenue Split1Total Revenues (USDm)

67% 69% 68% 66% 62% 55%

33% 31% 32% 34% 38% 45%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 LTM Sep-16

Product Sales Services (including rental)

Source: Company Information

Note:

1. Before intersegment eliminations and logistics & overheads

26

583 566 579 510367 353

124 177 188210

154 116

707 743 767720

522469

$0

$200

$400

$600

$800

$1,000

2011 2012 2013 2014 2015 LTM Sep-16

Russia International

707 743 767720

522469

707778 817 872 910 914

$0

$200

$400

$600

$800

$1,000

2011 2012 2013 2014 2015 LTM Sep-2016

Based on actual rate Using rate of 29.3 RUB/USD (2011 average rate)

Russian Rouble Outlook

27

USD vs Rouble

0

10

20

30

40

50

60

70

80

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

USD/RUB yearly average Forecast (Brokers Median)

Source: Bloomberg

Brokers expect Rouble to trade in a 50-70 per USD range over the medium-term

Brokers commentary

“Russia’s external position is likely to remain relatively stable over

the next year. While the current account surplus will probably

narrow to below 3% of GDP, external debt should decline below

40% of GDP and external financing requirements are among the

lowest in CEEMEA”

Nov-16

“Rouble supported by oil price increase following OPEC (and non-

OPEC) production cut decision, but additional short-term

appreciation potential below USD/RUB 60 limited in our view”

Jan-17

“Russia’s recession appears to be coming to an end. We expect

gradual improvement in growth indicators in 2017. However,

should expectations of sanctions’ easing materialize, Russia’s

growth may increase by as much as 1pp, making it an outlier

among commodity exporters”

Nov-16

Broker views

Growing EBITDA Margin Underpinned by Cost

Control

EBITDA (USDm)Driving the EBITDA Margin

108

148131

144131 135

15%

20%17%

20%

25%

29%

0%

5%

10%

15%

20%

25%

30%

35%

$0

$40

$80

$120

$160

2011 2012 2013 2014 2015 LTM Sep-16

EBITDA EBITDA margin (%)

7 6 8 8 54

103 102111 111

95 85

16 11

25 16

12

0

126119

144135

111

89

($40)

$0

$40

$80

$120

$160

2011 2012 2013 2014 2015 LTM Sep-16

Sales & Marketing G & A Other

Falling Material and Labour Costs (USDm) Falling Operating Expenses (USDm)

308 302339 327

214 198145 152 155 148

102 95

$0

$100

$200

$300

$400

2011 2012 2013 2014 2015 LTM Sep-16

Materials LabourSource: Company Information

EBITDA grew despite the Rouble depreciation with margins

increasing to 29% in LTM Sep-16 due to:

– Tight cost control and improved supplier terms

– Rouble depreciation impact on international operations

– Growth in the service business and innovative products

Cost control demonstrated by:

– Material and Labour Costs fell by 37% and 34% over

2013-15

– Operating Expense fell by 38% over the same period

28

Stable Cash Flows

Capital Expenditure and Rental Investment (USDm) Free Cash Flow2 (USDm)

29

Operating Cash Flow1 (USDm)

Source: Company Information

Notes:

1. EBITDA – Non-cash Adjustments – Management Fees – Interest – Taxes – Change in NWC

2. Operating Cash Flow – Capex – R&D – Other

3. Rental business is high margin and spending is discretionary

Stable Cash Flow Generation

Stable cash flow generation, remaining steady through 2013-

15 despite a 68% fall in Nominal Revenues:

On an LTM Sep-16 basis, OCF and FCF cash conversion

increased to 63% and 12% respectively

– Tight cost control increasing margins, helping to preserve

EBITDA despite fall in top-line growth

– Strong track record of adjusting capex to manage cash

flows given strong pipeline visibility, shown through a 66%

reduction between 2013-LTM Sep-16

36

56

3220 2 16

34%37%

24%

14%

1%

12%

0%

20%

40%

$0

$40

$80

2011 2012 2013 2014 2015 LTM Sep-16

Free Cash Flow FCF Cash Conversion (%)

83106 103 95

6286

77% 71%78%

66%

47%

63%

0%

20%

40%

60%

80%

100%

$0

$40

$80

$120

2011 2012 2013 2014 2015 LTM Sep-16

Operating Cash Flow OCF Cash Conversion (%)

18 2131

2314 1120 18 24

4932

68

$0

$20

$40

$60

$80

2011 2012 2013 2014 2015 LTM Sep-16

Capex Rental Investment3

116.2 84.8 32.8

339.2 341.5 385.6 367.8

0

100

200

300

400

2010 2011 2012 2013 2014 2015 2016E

According to the conditions of the Notes the Consolidated Net Leverage Ratio should not exceed 3 to 1 on an incurrence basis

As per guidance provided during the H116 conference call, leverage is expected to continue declining - 2.5-2.6x expected for 2016

Net debt / EBITDANet debt

1.10.8

0.2

2.6 2.42.9

Capital Structure as of Sep-16

Source: Company Information

Note:

1. March 2016

30

Capital Structure and Leverage Position

USDm Sep-16LTM Sep-16

EBITDAxCurrency Maturity

Issue

Rating

Cash and Cash Equivalents (34)

Revolving Credit Facility (drawn) 6 RUB 2018

Capex Facility 20 RUB 2017

Senior Unsecured Notes 401 USD 2018 B1 / B+

Net financial debt 391 2.9x

LTM Sep-16 EBITDA 135

Net Debt (USDm) and Net Debt / EBITDA Multiple

Trading Update

31

Real Revenue increased by 1% between 9M15-16 however,

fell by 13% on a nominal basis because of Rouble

depreciation

Continued cost tightening led to 4% EBITDA growth over the

same period with margins increasing from 26% to 31%:

– Cost of Sales fell by 12% due to reduced Raw Material

and Wage related costs

– Operating Expenses decreased by 28%, also down to

Wage related costs and a USD6m reversal of accrued

and unpaid bonuses

Strong OCF generation despite increase in Rental

Investment paid due to:

– Positive EBITDA growth, despite fall in Revenue

– Improved Working Capital position and Capex falling

vs 9M15

Net debt at USD391m (2.9x) as of Sept-16

Year end results expected to be more positive

Current Trading – 9M16 P&L (USDm) 9M15 9M16 Variance

Revenue 395 343 (13%)

Real Revenue 791 795 1%

COGS (280) (247) (12%)

Gross Profit 36 38 7%

Operating Expenses (80) (57) (28%)

EBIT 36 38 7%

EBITDA 101 105 4%

% margin 26% 31%

Source: Company Information

Note:

1. Rental business is high margin and spending is discretionary

CFS (USDm) 9M15 9M16 Variance

Capex (11) (7) (35%)

Rental Investment1 (25) (60) 135%

OCF 16 49 204%

Cash Conversion 16% 47%

Key Credit Highlights

Source: Company Information

Notes:

1. ESPs: Electrical Submersible Pumps

2. After Baker Hughes and Schlumberger

3. PMM: Permanent Magnetic Motor

Dominant global market share in ESPs1 - #1 manufacturer by volume; #1 service

company by installed base; #3 global market share by revenues21

Pioneer in ESP technology since 1952. More recently, Borets has introduced

PMM3, Wear Resistant Stages and Linear Motor technologies2

Global presence - well placed to grow as activity picks up3

Plays in the operating cost segment (not capital expenditure) of the oil

production lifecycle – hence, low oil price correlation5

Vertical integration across manufacturing, rental and service (including

3rd party pumps)4

Strong operational excellence with an unparalleled safety track record7

32

A pioneer in

the sector

Robust financial performance due to cost controls, deleveraging business

profile and strong pipeline visibility; record EBITDA margin in 20166

Appendix

Board of Directors and Key Management

Lev Stulberg

Chief Executive Officer

Daniil Shapirovsky

Chief Financial

Officer

Irina Boeva

Chief Operating

Officer

Vladislav

Kondratiev

Chief Technology

Officer

Irina Kalinina

Chief Audit

Executive

Vladimir Sidash

Geranial Director PK

Borets

Management Team

Board of Directors

Christopher Mackenzie

Chairman, Non-Executive

Director

Lev Stulberg

Chief Executive Officer,

Executive Director

Natalia Bryantseva

Non-Executive Director

Varel Freeman

EBRD-appointed Non-

Executive Director

Merrill Miller

Independent Non-

Executive Director

Gregory Schtulberg

Non-Executive Director

34

Peter Goode

Independent Non-

Executive Director

Current Shareholders

35

Tangent Fund (92%)

EBRD (5%)

IFC (3%)

International financial institution founded in 1991 for development of Central

and Eastern Europe

Owned by Sovereign entities and rated AAA

Purchased 5% equity stake in November 2013 for USD30m

TANGENT FUND Two beneficiaries of the fund: Gregory Schtulberg and Mark Shabad

A member of the World Bank Group focused on the private sector in developing

countries

Acquired a 3% equity stake in 2013 for USD18m

Russia is the Largest Market for ESPs

36

> 60% of the ESP wells are located in Russia and CIS

North America is the largest market for rod pumps, PCPs and gas lift and the second biggest market for ESPs

Middle East and North Africa are the main regions with natural flow wells

Approximate Distribution of Oil Producing Wells by Regions (2016E)

56%

4%18%

35%

9%19%

9%

3%

7%

18%

7%

20%

13%

6%

38%

78%

58%

13%

59%77%

4%11% 7%

46%

12%

68%

8%

176,505 604,826 65,620 31,227 15,126 3,746 139,452

0%

20%

40%

60%

80%

100%

Russia& CIS

North America South& Central America

Middle East& North Africa

Europe West Africa Asia Pacific

ESP PCP SRP Other

# No. of wells >

Source: Company Information

Russia – A Key Oil & Gas Market

37Source: Company Information

12%

88%

2020 Russia % Global

# of Wells in Russia Expected to Rise from 2018

0

100

200

300

400

Iran Venezuela SaudiArabia

Russia Canada

1P Reserves (oil & gas) - bnboe

0

5

10

15

20

25

30

US Russia SaudiArabia

Iran Canada

Production (mboepd)

% Oil Wells

2014

Oil Gas

2020

10%

90%

2014 Russia % Global

0

2

4

6

8

10

0

1

2

3

4

5

6

7

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Oil Wells Drilled (000s) Oil Production (mboepd)

Oil Wells Production

Russia as % of Oil Wells Globally

Total wells: 51,338 Total wells: 40,083

Russia

Others

Russia

Others

Russia - One of the Largest O&G Market Globally

Bond Details

Bond Terms

Issuer Borets Finance DAC

Rating B1 (Moody’s) / BB (S&P)

Debt instrument type Guaranteed Notes

Currency/size USD 420m

Tenor 5 years

Issue format Reg S / 144 A

Coupon 7.625%

Maturity date 26.09.2018

Governing law English Law

Listing Global Exchange Market of Irish Stock Exchange

38

End of Presentation

39