STRATEGY 2025 — STRATEGY 2030
- Defines the goals and objectives for each business segment.
- Allows effective planning of operational and financial activities.
- Provides for the calculation of investments required to maintain and increase production, develop human capital, improve management efficiency, create sustainable development factors, and implement all social commitments adopted by the Company.
The STRATEGY INTEGRATES ALL BUSINESS UNITS OF The COMPANY TO ACHIEVE DOUBLING OF MARKET CAPITALIZATION IN DOLLAR TERMS BY 2025.
STRATEGY-2025 WAS APPROVED BY THE BOARD OF DIRECTORS IN 2016. The strategy maintains continuity with the previous stages of development, strengthening the Company's potential to create high added value on the capital invested by shareholders.
|1||Growth of the Company's capitalization with the focus on doubling the value in dollar terms.||"Capitalization"|
|2||Financial stability and risk management.||"Financial efficiency" , "Integrated corporate risk management system and internal control"|
|3||High level of dividend yield.||"Dividend policy"|
|4||Creation of long-term advantages of the business model and key success factors for business segments.||"Business model" , "Key fundamentals of the growth strategy"|
|5||Sustainable development factors ensured considering environmental and social aspects.||"Financial efficiency" , "Environmental responsibility"|
IMPLEMENTATION OF THE STRATEGY IN 2017
The launch of Strategy 2025 has demonstrated its timeliness and relevance for a confident move forward and avoidance of critical risks for the Company in the current period of market volatility.
In the difficult economic conditions of the reporting year, the Company, keeping in view its strategic goals, took successful steps to strengthen the resource base, increase profitable oil and gas production, develop its own refining facilities and petrochemical enterprises, while maintaining high financial stability.
Company priorities of the 2017 reporting year:
- Maintenance of a stable level of oil production in accordance with the restrictions imposed by the OPEC+ agreement, at the same time ensuring maximum production efficiency.
- Increased production of HVO.
- Increase in oil refining and finished production at our own oil refining facilities.
- Optimization of the filling station network and development of the retail business brand.
- Development of brands and growth in the sale of the tire production complex.
- Increase of operational and procurement efficiency.
In 2017, on the implementation of the Strategy initiatives were directed about
Key parameters of the Strategy:
- Exploration and production. Increase of production up to 38.4 mln tonnes by 2030. 100% reserves replacement.
- Refining. Refining capacity up to 15.3 mln tonnes of crude oil. 89% light products output. Development of petrochemicals production.
- Retail chain. Efficiency improvements, focus on the customer, increase in sales margin, incl. by providing ancillary products and services.
- Tire business. Increase of market share to 22% by 2030 (sales up to 18.1 mln tires per year) as a result of development in prospective segments.
- Power production. Improving operational efficiency, program for diversification of raw materials sources.
Successful achievement of business objectives in the aggregate under the baseline scenario, based on the economic forecasts of the Government of the Republic of Tatarstan and the Ministry of Economic Development of Russia, will increase the Group’s capitalization to $ 36 billion. The United States will provide annual dividend payments to shareholders in accordance with the Company's dividend policy, environmental protection, and human capital development.