Kyiv, 2017

Working directions

PAT "Ukrgasvydobuvannya"

LPG Oil products

Oil & gas condensate

Oil products electronic trading

Auctions for the sale of LPG for population

needs

Coal products

Insolvent banks property sale

Developing directions

Electrical energy

Auctions for the sale of LPG in the domestic

market

Natural gas (Intra-Day and Day-Ahead Market)

Natural gas (private)

Settled > 10 000

transactions

Oil products sold 800 thousand tons

Volume of sales > USD 580 M

LPG sold > 200 thousand tons

500 participants

in sections Oil products & LPG

Registered > 500 companies

Coal products sold 1.53 million tons

www.ueex.com.ua

UEEX was created in April 2010 as an innovative project of Ukrainian specialists of the exchange industry, as well as financiers, lawyers, economists, IT specialists, whose main purpose is launching and functioning of spot and forward markets, exchange trading of energy and electricity in Ukraine. Main trading sections: Oil products, Liquefied gas (LPG), Natural gas, Coal products, Insolvent banks property sale. Trading with State Company PAT "Ukrgasvydobuvannya" take place in a separate section. UEEX introduced a new trading tool – differentials trading and a number of services for market participants. As of today on the UEEX is being traded: 15-20% of all Ukrainian LPG market 3-5% of all Ukrainian oil products market 5-6% of all Ukrainian coal market Ukrainian market is premium for importers The Exchange offers an opportunity to sell resource "just-in-time"

Ukrainian Energy Exchange is a leader in the exchange services market of Ukraine

The mission of CE "UEEX": creation of reliable, transparent and effective mechanism of market-based energy trading on the domestic and external market of Ukraine taking into account specifics and peculiarities of the country and increase energy security of the country.

Ukrainian Energy Exchange is a member of: European Business Association

Main customers of UEEХ

www.ueex.com.ua 4

Participants

Oil products

LPG

Natural gas

Coal

800 thousand tons $ 586 million 744 thousand

www.ueex.com.ua

216

79 10

29

74

100

UGVD/ EnergyresourcesLPG

Coal

OP

Gas

Others

Volume traded on UEEХ

Volume traded on UEEХ

797

170

0

100

200

300

400

500

600

700

800

900

Gasoline

Total production Sales

21,3%

Volume traded on UEEХ

714

156

0

100

200

300

400

500

600

700

800

Diesel fuel

Total production Sales

Volume traded on UEEХ

1475

178

0

200

400

600

800

1000

1200

1400

1600

LPG

LPG

Total productinn Sales

12,6%

9

31,3

1,53

0

5

10

15

20

25

30

35

Coal

Total production, million t

UEEX sales million t

UEEX is authorized to conduct electronic exchange trading of coal in accordance with the Order of the Ministry of Economic Development dated 19.06.2012 № 723 and the Order of the Cabinet of Ministers dated 26 October, 2011 № 1070-p "On approval of the Concept of transition to the exchange form of coal sales"

Volume traded on UEEХ

www.ueex.com.ua

0

1000000

2000000

3000000

4000000

5000000

6000000

0

5000

10000

15000

20000

25000

resourceJan

resourceFeb

resourceMar

resourceApr

resourceMay

resourceJun

Volume, thousand c m Cost, USD

There are more than 75 participants trading in natural gas on the Exchange.

UEEX Natural gas trade volume in 2017 (Spot, TERM)

0

20000

40000

60000

80000

100000

120000

Oil products, exchange

Volume,tone

Trading spot & TERM contracts, export, import, domestic

www.ueex.com.ua

• Spot contracts & TERM contracts (forwards on differentials) for the domestic market, export and import • Differentials (spot & forward terms) with reference to quotes of Thomson Reuters , Platt’s and Argus, where

participants are trading a premium/discount to the price index as of the date of delivery/payment

1000 t 1000 t 1000 t 1000 t 1000 t 1000 t

Trading lot 6000 t

1 delivery month 2 delivery month 3 delivery month 4 delivery month 5 delivery month 6 delivery month

11

In autumn 2016 CE "Ukrainian Energy Exchange" held the first in Ukraine trading session with TERM contracts with reference to: • Platt's and Argus quotes for export & domestic resources. • quote MOM Argus DAF Brest on the transition stations Solovei, Suzemka,

Chervonyi Khutir for the import resources.

54 thousand tons of oil products were sold as TERM contracts

www.ueex.com.ua

From 2017 UEEX has joined the system ProZorro.Sale. Electronic platform of UEEX on realization of insolvent banks property connected to the ProZorro.Sale. - https://sale.ueex.com.ua/

Sale property of insolvent banks

The process of insolvent banks withdrawal from the market is continuing in Ukraine for several years and may last until 2024. Of the total number 85 of 182 banks deemed insolvent. The carrying value of the assets of insolvent banks estimated at $ 16 billion.

0

500000

1000000

1500000

2000000

2500000

3000000

Sale property of insolvent banks

www.ueex.com.ua

Trading results are published by the international news agencies and Ukrainian industry publications, in particular in

respect of petroleum products and natural gas, such as Thomson Reuters, Argus, Oilnews, Nefterynok.

Exchange quotations

Market monitoring tools

www.ueex.com.ua 14

Price quotation Thomson Reuters

www.ueex.com.ua

Market monitoring tools

Main monitoring tools: - Exchange quotations - Netbacks

The following state bodies use UEEX quotes as price references: State Fiscal Service of Ukraine, the National Anticorruption Bureau of Ukraine, the Antimonopoly Committee of Ukraine, Ministry of Energy and Coal Industry of Ukraine and others.

Due to the fact that the Ukrainian market is the premium for the non-resident exporters of petroleum products into Ukraine and the fact that the market is very sensitive to the prices on the adjacent markets, seasonal demand and maintenance at plants, it is advisable to develop and implement an internal index for the Ukrainian market.

www.ueex.com.ua

Services

Buyer has the opportunity to schedule shipment of products purchased in the system of «Electronic queue» and calculate the cost of oil products and liquefied gas delivered by auto «Trucking calculator».

UEEX offers everyone the opportunity to subscribe for updated exchange quotations.

Separately UEEX publishes on its website an informer with the results of trades. This informer can be downloaded to display on your own website.

Also Mass Media has the opportunity to be accredited to access the PP "BETS" with the status of "Observer" and to the trading room of the exchange.

The exchange provides its clients with access to analytical information that is available in personal account on the website.

Specialists of the exchange conduct training in PP "BETS" for new bidders and improve the overall level of qualification of current members. Special free training program at the Training center have been developed by UEEX.

www.ueex.com.ua

Trucking calculator - delivery guarantee

Electronic Trading System

Anonymity of participants and absence of any contact among them until completion of trading eliminates any possible corruption schemes. Software Product "Electronic Exchange Trading System" (PP BETS) has been developed by leading UEEX and IT specialists who have deep knowledge and experience in developing exactly electronic exchange platforms. When developing PP BETS was taken into account feedback from participants in various commodity markets, as well as domestic and international experience of electronic exchange trading.

CE “UEEX" has its own modern electronic trading system - a scalable complex of information technology solutions, which provides the interaction between buyer, seller, the exchange and clearing bank through electronic channels of communication at all stages of exchange transaction conclusion.

The server part of the PP BETS is allocated in a modern data center, which meets the requirements Uptime Institute Data Center Site Infrastructure Standard TIER III.

www.ueex.com.ua 18

Electronic Trading System

CE Ukrainian Energy Exchange operates a clearing system and a risk management system of transactions executed on the Exchange. In particular, it collects collaterals from the participants of the Exchange before the trading session and establishes trading limits accordingly. Also, the Exchange also uses "e-line" SW to monitor implementation of obligations under transactions.

100% of transactions concluded on the Exchange ended in a real supply of goods.

www.ueex.com.ua 19

Electronic Trading System

Trading is performed in the form of a counter-anonymous auction

Trading in the Internet on the base of Electronic Trading System (ETS)

ETS works within the limits of participants’ collateral

Prices are formed solely on the basis of supply and demand in the course of trading

Trading modes: - Auctions - Spot trading - Forward contracts trading - Derivatives trading - Differentials trading

www.ueex.com.ua

Electronic Queue (a delivery monitoring tool) At CE Ukrainian Energy Exchange operates a system of control for shipments from oil depots and factories. PP "E-queue" allows to get to monitor shipments online, control balances and to document warehouse stock. The system has the ability to integrate all accounting systems of the enterprises

www.ueex.com.ua 21

www.ueex.com.ua

Success factors

Free & equal access to all comers

Transparent competitive conditions for participants

Clear bases and criteria for pricing

High quality products

Clear delivery terms

The Exchange’s tasks

Establishment of exchange trade of short-term contracts - Intra-Day Market and Day-Ahead Market in the domestic market, on

interconnectors and storages

To launch futures energy market

Development of tools for the introduction of derivatives trading and risk management mechanisms and implementation of exchange

transactions clearing in the spot market and the derivatives as well as OTC contracts (OTC Deals)

To increase stakes of exchange energy markets up to 15% of the market

To ensure functioning of competitive, liquid and transparent energy markets for the formation of indicative prices in energy

markets and improve the investment climate and image of Ukraine

Korosten’

Mukachevo

Ports

www.ueex.com.ua

Thank you for being with us on an irrevocable path of progress and change for the better!

CE "UEEX" team