Apresentacao HSBC Latin American Investment Summit Ingles

7/27/2019 Apresentacao HSBC Latin American Investment Summit Ingles

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April,2013

PETROBRAS

AT A GLANCE

HSBC Latin American

Investment Summit


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DISCLAIMER

The presentation may contain forward-looking statements We undertake no obligation to publicly update or

FORWARD-LOOKING STATEMENTS

the Securities Act of 1933, as amended, and Section 21E

of the Securities Exchange Act of 1934, as amended, thatare not based on historical facts and are not assurances offuture results. Such forward-looking statements merelyreflect the Companys current views and estimates of

revise any forward-looking statements, whether asa result of new information or future events or forany other reason. Figures for 2013 on areestimates or targets.

u ure econom c c rcums ances, n us ry con ons,company performance and financial results. Such termsas "anticipate", "believe", "expect", "forecast", "intend","plan", "project", "seek", "should", along with similar or

analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these

All forward-looking statements are expresslyqualified in their entirety by this cautionarystatement, and you should not place reliance onany forward-looking statement contained in thispresentation.

statements are only projections and may differ materiallyfrom actual future results or events. Readers are referredto the documents filed by the Company with the SEC,specifically the Companys most recent Annual Report onForm 20-F, which identify important risk factors that couldcause actual results to differ from those contained in the

NON-SEC COMPLIANT OIL AND GAS RESERVES:

CAUTIONARY STATEMENT FOR US INVESTORS

We present certain data in this presentation, such

forward-looking statements, including, among otherthings, risks relating to general economic and businessconditions, including crude oil and other commodityprices, refining margins and prevailing exchange rates,uncertainties inherent in making estimates of our oil and

as reserves includin recentl discovered oil and as

,

to present in documents filed with the UnitedStates Securities and Exchange Commission (SEC)under new Subpart 1200 to Regulation S-K becausesuch terms do not qualify as proved, probable orpossible reserves under Rule 4-10(a) of Regulation

reserves, international and Brazilian political, economicand social developments, receipt of governmental

approvals and licenses and our ability to obtain financing.

- .

2


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Petrobras TodayFully integrated across the hydrocarbon chain

Ex lorationand

2.4 mm boed production

Production

12 refineries (Brazil)

2.0 mm bpd refining capacity

ownstream

7,641 service stations

38,1% of market share

Distribution

9,190 km of gas pipelines in

Brazil

Gasan Power

24 countries

0.7 Bn boe of 1P (SPE)

International

3 Biodiesel Plants

Ethanol: opening new markets

Biofuels

96% of Brazilian production

34% of global DW and UDW

production

Oil products sales in Brazil:

2,285 Kbpd

Oil products output in Brazil:

1,997 Kbpd

20% share of service stations.

3 LNG Regasification

terminals by 2013 with 41

MMm/d capacity

7,028 MW of generation

243 th. boed production

231 th. bpd refining capacity

Largest domestic producer of

biodiesel

3rd producer of ethanol in

Brazil

2012ProvenReserves(SPECriteria) BrazilAdjustedEBITDAperSegment(US$bn)(1)

3.03,2

Onshore8%

Shallow Water(0-300m)

8%

. on oe

43.4 42,211

4.10.9

1.4

3.62,0

1.1

1.3

.1.6

1.1

2.1

Deep Water(300-1,500m)

48%

Ultra-Deep Water

19.330.6

6.9

15,0> , m

36%

(1)ExcludesCorporateandElimination (2)Adjustedaccordingtoaverageexchangerate (3)IFRSUSD 3

2009 2010 2011(3) (3)(2) 2012

E&P RTM G&P Distribution International

(3)


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OwnershipBroad distribution: government, Brazilian and foreign shareholders

19%

ForeignShareholders

Non-Voting

35%

16%

Brazilian

Government

Non-Voting

Voting

47%

12%

6%

12%

18%

Brazilian Non-GovtShareholders

Non-Voting

Voting

Brazilian government, by law, must maintain control. Does so with 61% of voting shares.

*Includes:FederalGovernment,BNDES,BNDESPAR,Sov.WealthFund

, , .

2000: ADRs listing on NYSE (PBR and PBR/A)

4


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Relative PositionRanked among the leading integrated energy companies

16.8

3.23.3

4.2

25.2

13.3 12.3

11.3 10.8 8.66.8

5.2

2.6 2.6 2.31.7 1.6

0.6

Exxon BP Shell BR Chevron Total Conoco ENI StatoilGas Oil

MarketCa US$bn March29th,20132012Refinin Ca acit mmboe d

Exxon BP Shell Chevron BR Total ENI Conoco BG

Gs Oil

3.7

5.5 404

1.92.12.3

2.22.9

0.90.3

231 209

73

114 112134

7782

Note: Peer companies selected above have a majorit y of capital traded in the public market.

Source: Evaluate Energy (barrels per calendar day, considering company % shareholding and includ ing JVs) and Bloomberg

5Note: Peer companies selected above have a majority of capital traded in the publ ic market.

Exxon Shell BP BR Conoco Total Chevron ENI Statoil EXXON CHEVRON SHELL BP TOTAL BR ENI STATOIL CONOCO


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Competitive AdvantagesUniquely positioned to integrate upstream and downstream operations

Abundantreserves300km

awayfromthemarket

13

Leaderindeepwaterproduction,withaccesstoabundantoilreserves

Dominantpositioningrowingmarket,farfromotherrefiningcenters

Fullydevelopedinfrastructureforprocessingandtransfporting

as

Exploration & Production Downstream Gas & Power/ Biofuels/Petrochemicals

Newexploratoryfrontier,adjacent

to

existing

operations

Balanceandintegrationbetweenproduction,refininganddemand

IntegrationaccrossfullenergyandhydrocarbonchaininBrazil

6


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2013-17 Business and Management Plan Fundamentals

PRIORITY

PERFORMANCE

DISCIPLINE

Priority for

FinanciabilityAssumptions

focused on

reaching

physical andfinancial tar ets

Guarantee theexpansion ofthe business

with solid

oil andnatural gas

exploration &production

maintenance

No new equity issuance

of each project

financialindicators

projects inBrazil

International Prices (OilProducts)

Divestments in Brazil and,,

7

2013 2017


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2013-2017 BMP InvestmentsApproved by Petrobras Board of Directors in 03/15/13

2013-2017 PeriodUS$ 236.7 Billion Financiability Assumptions

Investment Grade Rating maintenance:

Leverage lower than 35%28%27.4% Net Debt/EBITDA lower than 2.5x

No new equity issuance

E&P62.3%

(US$ 147.5 bi)

(US$ 64.8 bi)

4.2%

(US$ 9.9 bi)

Products)

Divestments in Brazil and, mainly, abroad1.1%(US$ 2.9 bi)

.(US$ 5.1 bi)

1.0%(US$ 2.3 bi)

1.4%(US$ 3.2 bi)

0.4%(US$ 1.0 bi)

8* Pbio = Petrobras Biofuel ETM = Engineering, Technology and Materials Other Areas = Financial, Strategy and Corporate

International ETM* Other Areas*Pbio*E&P DistribuitionDownstream G&E


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2013-2017 BMP InvestmentsImplementation x Evaluation

+=Total

All E&P projects in Brazil and projects of theremaining segments in phase IV

Projects for the remaining segments,excluding E&P, currently in phase I, II and III.

. ..770 projects 177 projects947 projects

1.0%

(US$ 0.3 Billion)6.1%

.

(US$ 147.5 Billion) 27.4%

(US$ 64.8 Billion)

.

(US$ 147.5 Billion) 20.9%

(US$ 43.2 Billion)

2.9%US$ 5.9 Billion

13.5%

(US$ 4.0 Billion)

6.4%

(US$ 1.9 Billion)

.

2.2%

(US$ 5.1 Billion)

4.2%

(US$ 9.9 Billion)0.5%

(US$ 1.1 Billion)

1.5%

(US$ 3.2 Billion)

1.0%

(US$ 2.3 Billion)

1.4%

(US$ 3.2 Billion)

.

(US$ 2.9 Billion)

0.4%

(US$ 1.0 Billion)

1.1%

(US$ 2.3 Billion)

1.4%(US$ 2.9 Billion)

0.5%

(US$ 1.0 Bililon)

73.0%(US$ 21.6 Billion)

9Phase I: Opportunity Identification; Phase II: Conceptual Project; Phase III: Basic Project ; Phase IV: Execution

* Pbio = Petrobras Biofuel ETM = Engineering, Technology and Materials Other Areas = Financial, Strategy and Corporate

International ETM* Other Areas*Pbio*E&P DistribuitionDownstream G&E


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2013-2017 Business and Management Plan :Project Portfolio Management

INVESTMENTS UNDER IMPLEMENTATION

US$ 147.5 Billion US$ 43.2 Billion US$ 5.9 Billion US$ 3.2 Billion US$ 2.9 Billion US$ 1.1 Billion

Implementation ofProjects under

Evaluations contingent

E&P Downstream Gas & Energy International Distribution Biofuels

US$ on:

Results of Technical-

Economical Feasibility

. i

Availability of Resources

(financiability);

US$29.6 bi*

resources.-

E&PUS$ 21.6 BillionDownstream

US$ 4.0 BillionGas & Energy

US$ 1.9 BillionInternational

US$ 0.3 BillionDistribution

US$ 1.8 BillionBiofuels

10

* US$ 207.1 Billion include ETM (US$ 2,3 bi) and Other Areas (US$ 1,0 bi) investments


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Programs to Support the 2013-2017 BMP

2013-2017 BMP

US$ 236.7 Billion

PRC-PooProgram to

Program toIncrease

Operational

PROCOP

Operating Costs

Reduce Well Costs

UO-BCUO-RIO

Program

INFRALOG Logistic Infrastructure Optimization ProgramPRODESIN Divestment Program

Petrobras Local Content Management Take advantage of the industrys capacity to maximize gains to Petrobras

11

PROCOP: Focus on OPEX, operating costs of the Company activities Manageable Operating Costs.

PRC-Poo: Focus on CAPEX dedicated to Wells construction Investments in Drilling and Completion.


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PROCOP: Optimization of the Operational Activities IncreasingProductivity and Reducing Unit Costs

Benefits will come gradually and will lead to a total economy of R 32 Billion by 2016.

Initiatives Example

Annual Reduction Targets

chemicals and fuels; Productive drilling rig days;

Maritime and air transportation; Onshore well

interventions;

4 79

12owns ream: onsump on o c em ca s an

catalyzers; Residual production; Scheduled

Stoppages routine; excessive lay day at ports; Fleet

use; Delivery Schedule;osts

ranspe ro: Intervention in vessels, terminals, oiland gas pipelines, and tanks;

Gas & Energy: NG consumption to produceammonia; Operating cost for the gas pipelineM

anageable

R$Billion

network;

Engineering, Technology and Materials:Supply and inventories of materials; IT costs per

12

Corporate e Services: Expenditures with

buildings, trips and transportation; HSEmanagement.

* Expenditures for industrial, administrative and support installations

Annual Reduction provided by PROCOP

Evolution of Manageable Costs


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PRC-Poo: Program to Reduce Well CostsWell Construction is a Relevant Portion in Investments

Other Areas 89.2

236.7

147.5

24.3

Infra-structure and Support16.3

Exploration

Development Well Investments

total US$ 75 billion

E&P 147.5

106.9 Production Development

2013-2017 BMPInvestments

Brazil E&PInvestments

Petrobras currently has 69 floating drilling rigs for well construction and maintenance in Brazil

Well construction represents:

32% of Petrobras investments in 2013-2017 BMP

13

51% of Brazil E&P Investments


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Exploration & Production

2013-2017 PeriodUS$ 147.5 Billion

16%(24.3)

73%

(106.9)

(16.3)

Infrastructure and Support

Exploration

Production Development

1414


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E&P Investments

2013-2017 Period

ro uc on eve opmen

US$ 106.9 BillionUS$ 24.3 Billion

25%(26.2)

6%(1.4)

(46.4)

32%(34.3)

70%(17.1)

(5.8)

Post-Salt

Pre-Salt

Transfer of Ri hts

15

Aside from Exploration and Production Development, E&P infrastructure investments total US$ 16.3 Billion.


16/43

Exploratory Success and Increase in ReservesMore than 3 Discoveries per month between January/2012 and February/2013

53 discoveries in the last 14 months (Jan/12 Feb/13), from which 25 were offshore (15 in Pre-salt)

Brazil Discoveries: 53

Offshore: 25

Onshore: 28

Exploratory Success Ratio: 64% Reserves: 15.7 Billion boe

RRR: 103% for the 21st consecutive year

R/P: 19.3 years

Pre-Salt

16 RRI: Reserves Replacement Ratio R/P: Reserve / Production

Discoveries: 15, of which 8 pioneers

Exploratory Success Ratio: 82%

Reserves: 300 km in the SE region, 55% of GDP16


17/43

Reserves and Recoverable VolumesRapid growth in reserves from discoveries in deep waters

Deep/UltraDeepWaterPhaseOnshorePhase ShallowWaterPhase

Proved Reserves SPEcriteria

25000

30000

15.73biboePreSalt:Sapinho

20000

Roncador

ParkofWhales,Mexilho

PreSalt:Lula&Cernambi

Million

Boe

10000Garoupa

Marlim

Guaricema

0

5000 Carmpolis

1953

1954

1955

1956

1957

1958

1959

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Onshore 0300m 300

1500m >

1500m

*Lula/Cernambi,Iara,SapinhoandWhalesPark,rangingfrom6.7to7.9Billionboe

Presalts Recovery

Volume* Transfer of Rights

17


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Production Curve in Brazil Oil and LNG

Post-Salt, Pre-Salt and Transfer of Rights

2014

Roncador IV(P-62)

Sapinho Norte

2016

Lula Alto

Lula Central

Lula Sul

2012

Baleia Azul(Cid. Anchieta)

2013

Sapinho Pilot(Cid. So Paulo)

Bana

2015

Iracema Norte(Cid. Itagua)

2017

Lula Ext. Sul(P-68)

Lula Oeste

2020

Espadarte III

Florim

2019

Jpiter

Bonito

Franco Leste

2018NE de Tupi(P-72)

Iara NW(P-71)

bpd

. a e a

Iracema Sul

(Cid.Mangaratiba)

(P-66)

Franco 1(P-74)

Carioca

Lula Norte

.

Lula NE Pilot

(Cid. Paraty)Papa-Terra(P-63)

Roncador III

-

Franco Sul

(P-76)Tartaruga Verdee Mestia

Iara Horst 4,200

Deep WatersSergipe

Sul Pq. Baleias

Maromba

Espadarte I

19%

6%

Thousands -

Franco SW(P-75)

(P-55)

Norte Pq.Baleias (P-58)

Papa-Terra(P-61)

(P-70)

Parque dosDoces

Franco NW(P-77)

Carcar

Entorno de Iara(P-73)

5% 7%

30% 35%

31%1%

7%

2,022

2,500 ,

2,0221,980

( 2%)

95% 93% 69%58%

44%4-6% p.y. Growth

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Post-salt Pre-salt (Concession) Transfer of Rights New Discoveries*

(*) Includes new opportunities in blocks where discoveries have already been found 18


19/43

NEWPRODUCTIONUNITS 20132014Newplatformsbuiltdomesticallyandabroadwillcontributetoproduction

Project Capacity 1st Oil HullTop Side /Integration

oca on en

BidRound

Commit. Target

Sapinho Pilot120 kbpd 01/05/2013

Cosco Shipyard Schahin/Modec2 30% 65%

.

Bana and PiracabaFPSO Cid. Itaja 80 kbpd 02/16/2013

JurongCingapura

Odebrecht and TeekayCingapura 5 60% 81%

Lula NE PilotFPSO Cid. Parat

120 kbpd 05/28/2013Keppel Shipyard

Cin a uraQGOG/SBM

Brasfels2 30% 65%

Papa-TerraP-63

140 kbpd 07/15/2013Cosco Shipyard

ChinaQuip

Rio Grande0 0% 65%

Roncador Module IIIP-55

180 kbpd 09/30/2013 EASBrasil

QuipRio Grande

0 0% 65%

Parque das BaleiasP-58

180 kbpd 11/30/2013Queirz Galvo

Rio GrandeQueirz Galvo

Rio Grande0 0% 63%

Papa-TerraP-61

TLWP loadout to P-63

12/31/2013FloatecBrasfels

FloatecBrasfels

0 0% 65%

Roncador Module IVP-62

180 kbpd Mar/2014 Camargo Corra/IESAEAS

Camargo Corra/IESAEAS

0 0% 63%

Sapinho NorteFPSO Cid. Ilhabela

150 kbpd Sep/2014QGOG/SBM

ChinaQGOG/SBMSBM/BRASA

2 30% 65%

Lula - Iracema SulFPSO Cid. Mangaratiba

150 kbpd Nov/2014Cosco Shipyard

ChinaNot define 2 30% 65%

*Note:FPSOCid.XX=Leased/PXX=Owned 19


20/43


21/43

OPERATIONALEFFICIENCYPROEF ProgramtorecoverandmaintainoperationalefficiencyinCamposBasin

ImproveOperationalUnit

EfficiencyLevels

Improveproduction

systemsintegrityPROEF

UO-BC

Increasethereliabilitytodeliver

roduction tar ets of BP 201216

UO-RIOReachSustainableLevelsof

OperationalEfficiency

ReduceRiskofLossof

OperationalEfficiency

Operational Efficiency - E&P Operational Efficiency - UO-BC Operational Efficiency - Without UO-BC Operational Efficiency - UO-RIO

E&P Recent Operational Efficiency (%)

PROEF Targets

9294

95

94 939696

93

93 94 94 94

90

95

100

90 8785

88

80

76

81

88 90

75

80

85

71 72

65

70

2009 2010 2011 2012 2013 2014 2015 2016


22/43

E&P Distribution of RevenuesStable concession terms have led to higher income per barrel

Breakdown

of

realization

rice

er

boe

roduced

in

Brazil

% shareof realization price120

US$/boe realization price US$/boe realization price

25%31% 33% 31%

80%

100%

79

100

13%

23%21% 21% 21%

60%

$20 $20

$22

$31 $30

62

60

80

17%

22%18% 16% 17%

17%

20%

$11 $12$14 $16

$7$11

$16$15

$12

$15

20

40

0%

2009 2010 2011 2012$9

$10 $13 14

0

2009 2010 2011 2012

22

Lifting Cost Exploratory costs + DD&A + Others Income Tax Production Tax Net Income

*Othersincludetaxexpenses,R&D,SG&A

Brent

22


23/43

E&PPROFITABILITYProductionofoil,notgas,generateshighrealizationprice

30

35

15

20

25

5

10

2007 2008 2009 2010 2011 2012

Peers Petrobras

*

ProductioninBrazilhighlyconcentratedinoil:86%oiland14%gas

Stableregulatoryenvironmentallowsforcapturingthebenefitsoftheincreaseinoilprices

Peers:BP,CVX,XOM,RDS,TOT *Petrobras PreliminarySource:EvaluateEnergy


24/43

PROFITABILITY

New E&P projects will continue to generate attractive returns

35.00%

40.00%

45.00%

KeyAssumptions:

25.00%

30.00%

. ,

Productionof500MMbarrels

Rampup inlinewithindustry

Historic decline rate

10.00%

15.00%

20.00%

Oilvalue=95%Brent

Doesnotincludeexplorationand

acquisitioncosts

.00%

5.00%

60 70 80 90 100 110

ex ected scenario

US$/bbl

Case3 US$12/boeCapex/US$5/boeOpexwithoutSpecialInterest(suchasTransferofRights)

Case2 US$15/boeCapex/US$7/boeOpex

The graph illustrates the costbenefit ratio of a standard production development in Brazil, using

assumptions based on previous experiences

24


25/43

Pre-Salt Production is a RealityProduction reached 300 thousand barrels of oil per day in Feb/20/2013

- Oil Production reached 300 kbpd (of which 249 kbpd

is Petrobras stake), 43% in Santos Basin and 57% inCampos Basin;

High Resolution Seismic: higher exploratory

success

This level was reached with only 17 producing wells, 6

in Santos Basin and 11 in Campos Basin; Level reached only 7 years after discovery:

Geological and numerical modelling: better

production behaviour forecast

ampos as n: years

US Gulf of Mexico: 17 years

North Sea: 9 years

Production of 1 million b d o erated b Petrobras will

e uct on o we construct on t me rom

days in 2006 to 70 day in 2012: lower costs

Selection of new materials: lower costs

be reached by 2017 and the 2.1 million bpd thresholdwill be reached by 2020.

Petrobras Pre-salt productions share: from 5% in

Qualification of new systems for production

gathering: higher competitiveness

. . . .

Separation of CO2 from natural gas in deepwaters and reinjection: lower emissions and

increase in recovery factor

25


26/43

Drilling Rigs AvailabilityNecessity met with imported and domestic units

Rigs

00m)

8 9 6 82

Drilling Rigs: Imported vs. Domestic

42 42 42 42 42

umberof

Drillin

aterDepth>2.

26

40 41 42 4234

2519

8 17

23 31

(

5 7 811 9

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

Imported Rigs Brazilian Rigs (Existing) Brazilian Rigs (New)

28 new domestic drilling rigs from 2016 on: Local Content between 55% and 65%

Midtermneedsfordrillingrigsarenowlargelysatisfied. Futureintermediatedemandwillbelimitedtospecificsituationsandneeds.

Startingin2016,Brazilianbuiltrigsexpectedtobeginreplacinginternationallybuiltfleetastheircontractsexpire(andsubjecttototalfleetneeds).

Ifforanyreasonthedomesticrigsarenotcompletedasscheduled,Petrobrashasthepossibilty

ofrenewingsomeorallofexpiringleases.26


27/43

Downstream Investments

Projects Under Implementation

2013-2017 HIGHLIGHTSUS$ 43.2 billion

21%(9.2)

Implementation Portfolio: RNEST (Pernambuco)and COMPERJ 1st Phase (Rio de Janeiro)

11%

(4.9)

45%

(19.4)

6% 6%

9%

(3.7)

Refining capacity expansion in design phase:

Premium I (Maranho), Premium II (Cear) and

COMPERJ 2nd Phase (Rio de Janeiro)

6%

(2,8)

(2.4)

1%

(0.4)

1%

(0.3)

Projects Under Evaluation

(2.8)

Diesel and Gasoline Quality Portfolio: REPLAN,

RPBC, REGAP, REFAP and RLAM

US$ 21.6 billion

16%

2%

(0.5)

Fleet expansion: PROMEF 45Oil and Oil Products transportation vessels

64%(13.8)

(3.5)

3%7%

8%

(1.7)

CorporateEthanol LogisticsFleet Expansion PetrochemicalLogistics for OilQuality and ConversionOperational ImprovementRefining Capacity Expansion

(0.5)(1.5)


28/43

Downstream2012-2016 Investments

Refinin Ca acit Ex ansion

n

Petrochemical

Logistics for Oil

Quality and Conversion

Operational Improvement

Biofuels


US$

billi

201620152012 20142013

High utilization factor on the current assets, combining

2012-2016 INVESTMENT HIGHLIGHTS ProjectsUnderEvaluation

Implementation of projects depends mainly on:

End of the first investment cycle in Quality

.

international standards;

b. Regulatory requirements;

28

RNEST and 1st Phase of COMPERJ coming online

New refineries under evaluation (Phase I)

.

d. Competition for financial capacity;

I t ti d B l


29/43

Integration and BalanceConstruction of new refineries intended to meet Brazilian demand

Thousbpd

INTEGRATION BETWEEN OIL PRODUCTION, REFINING CAPACITY AND DOMESTIC MARKET

PREMIUM I(2nd phase)300,000 bpd

Oct/2020

COMPERJ(2nd phase)

3,3803,472

4,200

PREMIUM II300,000 bpd

Dec/2017

,

Jan/20182,788

1,641

2,320

2,004

2,500

1,393

1,7982,147

1,8141,980

1,944

2,255 Abreu e LimaRefinery

(RNE)230kbpd

1) Nov/2014

2,320

PREMIUM I(1st phase)300,000 bpd

Oct/2017181

1,036

,

... ... ... ...

COMPERJ(1st phase)165,000 bpd

Apr/2015

1980 2000 2010 2012 2016 2020*OilandNGLProduction Brazil Totalcrudeoilprocessed Brazil OilProductsMarket(2scenarios)

ProjectsUnderImplementation ProjectsUnderEvaluation

29*2020TotalCrudeOilProcessedmayvarydependingonProjectsUnderEvaluation 29

P it S ki ith I t ti l P i


30/43

Parity: Seeking convergence with International Prices9 months: +21.9% in Diesel and +14.9% in Gasoline

.In the last 9 months: 4 Diesel price readjustments, totaling +21.9%, and 2 Gasoline readjustments (+14.9%).

Average Brazil Price* x Average USGC Price**

Imp

800

900

220

240

260 2009 2010 2011 2012 20132008

rtedVolumes(R

$/bbl)

500

600

140

160

180

200

Losses

Gains (Thousandbb

Prices

200

300

400

60

80

100

120

n/13

n/12

n/10

n/09

n/11

l

/d)

ar/13

0

100

0

20

v/08

30(*) considers Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil. (**) USGC price with domestic market prices.

JJJJ J

Gasoline Imports

Diesel Imports

ARP USGC (w/ volumes sold in Brazil)

ARP Brazil

MN

EBITDA


31/43

EBITDAGrowing and stable cash flow generation

Ad ustedEBITDABreakdown erSe ment US bn ****

3.0 19.220.1

4.2

1.7

3.62.0

1.1

1.3

1.31.6

1.1

2.2

3.2

15.5

**

30.5

43.4 42.0

11

. .

19.3

6.9 2009 2010 2011 2012

2009 2010 2011 2012

15.6

31

(*)US

GAAP

(**)

IFRS

(***)

Adjusted

according

average

exchange

rate.

Excludes

Corporate

and

Elimination.

E&P RTM G&P Distribution International

Theimagepartwith relationship ID rId7wasnotfound in thefile.

T d B l


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Trade BalanceRapid demand growth in the last 4 years has led to a shift in the trade balance

2009(thous.bpd)

2012(thous.bpd)

4,400

4,700

5,000

+24%

+24%DieselSales

433548

779

227

705

5492,3002,600

2,900

3,200

3,500

3,800

,

Tho

usand

184152

2,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2,800

364 346

18

Exports Imports

397

81

75

Exports Imports Balance

156

1,600

1,900

2,200

2,500

Thousandm

+3%

249

Balance231

1,000

1,300

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Oil OilProducts

32

Theimagepartwith relationship ID rId7wasnotfound in thefile.Gasoline and Diesel International Prices


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Gasoline and Diesel International PricesTaxes account for significant share of pump price in Brazil

Gasoline Retail Prices2012 Average

Diesel Retail Prices2012 Average

Brazil

DisttributionMarginTaxationRefineryGatePrice Anhydrous Alcohol

Therefinerygatepriceforgasolineiscurrently37%oftheretailpricewhilefordieselitis61%

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Gas & Energy Investments

Projects Under ImplementationProjects Under Implementation + Under EvaluationUS$ 5.9 billion

32%(1.9)

6%8%0.8

20%(2.0)

US$ 9.9 billlion

43%

19%(1.1)

.

25%(2.5)

.


US$ 4.0 billion

46%(4.6)

12%(0.5)

3%(0.1)

Conversion of Natural Gas into fertilizers and other gas chemical products:

UFN III at Trs La oas Mato Grosso do Sul

2013-2017 HIGHLIGHTS

34%(1.4)

51%(2.0)

Natural gas processing and transportation: NGPU Cabinas (Rio de Janeiro)

Electric energy generation: Thermal Power Plant Baixada Fluminense (Rio de

34Gas-chemical plants

LNG

Network

Electric Energy LNG Regasification: Bahia Terminal (Bahia)

Units in Design Phase: UFN IV (Esprito Santo) and UFN V (Minas Gerais)

Natural Gas Supply And Demand


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Natural Gas Supply And Demand(Million m/d)

35


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FinancialConsiderations

Financial Planning Assumptions


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Financial Planning AssumptionsFinancing analysis only incorporates projects under implementation

Main assumptions for cash flow generation and investment levels

No equity issuance Investment grade maintenance

2013-17 BMP is based on constant currencies from 2013.

Brent prices (US$/bbl) US$ 107 in 2013, declining to US$ 100 in the long term

Average exchange rate (R$/US$) R$ 2.00 in 2013, strengthening to R$ 1.85 in the long term

Leverage Limit: < 35% Maximum leverage in 2013 and 2014 (34%), declining after 2015

Net debt / EBITDA Limit : < 2.5x Limit will be surpassed in 2013 and will fall below 2.0x after 2015

Oil product prices in Brazil Convergence to international prices

Divestments US$ 9.9 billion

Returns on new E&P projectsPre-salt projects breakeven between US$ 40-45/barrelBig post-salt projects have returns similar to pre-salts

37


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Operating Cash Flow and Funding Needs

Additional financing needs will be funded exclusively throughnew debt. No equity issuance is envisaged.

246.9

10.79.9

39.8

246.9

Free cash flow, before dividends, after 2015.

Annual borrowin needs 2013-2017Billion

61.3

Gross US$ 12.3 billion Net US$ 4.3 billionUS

165.0

207.1

Net borrowing needs 50% below previous Plan due to:

2017 production, versus 2012, leading to higher

Divestments and restructurings

Cash utilization

-

operating cash flows

Declining downstream investments

Long-term Brent prices (US$ 100 vs US$ 90 in the

Fontes Usos

38

Operating cash flow (after dividends)

Investments

Amortization

previous Plan) and long-term F/X rate (R$ 1.85 vs R$1.73)

L


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Leverage

Leverage Net Debt/EBITDA

BMP Target (< 35%)

BMP Target (< 2,5x)

20172016201520142013 20172016201520142013

Declining leverage, within the Companys self-imposed limits Net Debt/EBITDA surpasses limit at some points in time, during the Plan period

39

Capex and Cash Flow


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pFree cash flow turns positive with completion of downstream projects

50000

US$MM

45,078 43,164

Capex vs. Operating Cash Flow

42,949Approx.

2000030000

40000

27,888

on

0

OCF2012 Capex2010 Capex2011 Capex2012 Capex2017

E&P Downstream Gas&Energy Others

2013 2017BusinessandManagementPlanAssumptions: Capex Downstreamprojectsnotcurrentlyunderimplementationonlyproceed

supportedbycashflowsandbalancesheetstrength

OperatingCashFlow: Oilproductionincreasesby 750TBPD,generatingadditional

operatingcashflow. Importparitywouldeliminatedownstreamlosses

Capital Structure


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Capital Structure

1

24% 24%28% 28% 30%

20%

30%

40%

4

5

1.66 1.61

2.46 2.42

2.77

-10%

0%

10%

1

2

2

R$ Billion 12/31/12 12/31/11

-20%0

4Q11 1Q12 2Q12 3Q12 4Q12

Lower operating cash flow and higher capexresulted in net debt increase.

Short-term Debt 15.3 19.0

Long-term Debt 181.0 136.6

Total Debt 196.3 155.6

increased net debt.

- as an as qu va en s . .

= Net Debt 147.8 103.0

US$ Billion

1) Net Debt / (Net Debt + Shareholders Equity)2) Refers to the adjusted EBITDA which excludes equity income and impairment.3) Includes tradable securities maturing in more than 90 days4) Period-end commercial selling rate for U.S. dollar

. .

41

Petrobras Ratings


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Consolidated investment grade position

A- / A3

BB+ / Ba1

BBB- / Baa3

BBB / Baa2

BBB+ / Baa1

Investment grade

B+/ B1

BB- / Ba3

BB / Ba2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

oo ys tc

42


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Information:

Investor Relations

+55 21 3224-1510

[email protected]

.

www.petrobras.com.br/ir

43

Documents

Apresentacao HSBC Latin American Investment Summit Ingles