TAQA Abu Dhabi National Energy Company PJSC

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TAQAAbu Dhabi National Energy Company PJSC

• Q2 2008 Financial Results
• August 7, 2008

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Disclaimer

• These materials have been prepared by the Abu
  Dhabi National Energy Company - TAQA (Company).
  
• These materials are for information purposes only
  and do not constitute a prospectus, offering
  memorandum or offering circular or an offer to
  sell any securities and are not intended to
  provide the basis for any credit or any third
  party evaluation of any securities or any
  offering of them and should not be considered as
  a recommendation that any investor should
  subscribe for or purchase any securities.
• The information contained herein is preliminary
  as of the date hereof, supersedes any previous
  such information delivered to you and will be
  superseded by any such information subsequently
  delivered. Any investor who subsequently
  acquires any securities must rely solely on any
  final offering memorandum published in connection
  with such securities, on the basis of which alone
  purchases of or subscription for any securities
  may be made. In addition, investors should pay
  particular attention to any sections of any such
  final offering memorandum describing any risk
  factors.
• The information contained herein is subject to
  change without notice and past performance is not
  indicative of future results. The Company is
  under no obligation to update or keep current the
  information contained herein.
• No person shall have any right of action (except
  in case of fraud) against the Company or any
  other person in relation to the accuracy or
  completeness of the information contained herein.
• The merits or suitability of any securities to
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  such determination should involve inter alia, an
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• No person is authorized to give any information
  or to make any representation not contained in
  and not consistent with these materials and, if
  given or made, such information or representation
  must not be relied upon as having been authorized
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• These materials are confidential and are being
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  not be taken away, reproduced (in whole or in
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  Company.
• These materials are not intended for distribution
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  not intended for distribution, except (i) to
  accredited investors as defined under applicable
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  institutional buyers under Rule 144A under the
  U.S. Securities Act of 1933, as amended (the
  "Securities Act") and (iii) outside the United
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  defined in Regulation S under the Securities Act)
  in offshore transactions in compliance with
  Regulation S.
• These materials contain, or may be deemed to
  contain, "forward-looking statements" (as defined
  under applicable Canadian securities laws and in
  the U.S. Private Securities Litigation Reform Act
  of 1995). By their nature, forward-looking
  statements involve risks and uncertainties
  because they relate to events and depend on
  circumstances that may or may not occur in the
  future. The future results of the Company may
  vary from the results expressed in, or implied
  by, the following forward looking statements,
  possibly to a material degree. Any investment in
  securities is subject to various risks, such
  risks should be carefully considered by
  prospective investors before they make any
  investment decisions.

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TAQA Quarter Highlights

• Quarterly numbers reflect full impact of 2007
  acquisition activity, including PrimeWest
• Total asset base grew from AED 68 billion on Dec
  31, 2007 to AED 86 billion on June 30, 2008
• Revenue mix dramatically altered from same period
  last year with upstream now accounting for 50
  of total revenues in Q2 2008
• MOU signed with Theolia for wind farm project in
  Morocco and with Iberdrola on cooperation in MENA
  region

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Recent Developments

• Agreement with Shell U.K. Limited (Shell) and
  Esso Exploration (Esso) to purchase their
  respective interests in the Tern, Eider,
  Cormorant North, South Cormorant fields and
  related sub-sea satellite fields and
  infrastructure, situated in the Northern North
  Sea
• Expected average daily production in the region
  of 40,000 barrels of oil equivalent (boe)
  represents a significant increase to TAQAs
  existing European footprint
• Acquisition will be financed through cashflow and
  company credit lines
• Partnership with Wood Group as operating and
  maintenance contractor and temporary Duty Holder
  for the assets
• Significant potential to improve facility up-time
  and explore the potential for several new well
  infill locations through seismic survey and
  further Triassic reservoir development
• Expected field life extension to 2020 following
  investment program
• Recent Financings
• Convertible debenture
• US 1.5 billion bond offering
• Revolving credit facility

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Value Creation from Acquisitions
Strengthening forward commodity prices have
significantly increased the value of TAQAs
Upstream acquisitions
Crude oil price progression (WTI /bbl)
Forward curves at the time of each acquisition
(BP, Bratani, Northrock, Pioneer, Primewest)
compared with current forward curve
Natural gas price progression (HHUB /mmbtu)
Source Bloomberg data as of June 19, 08
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Upstream Midstream Performance
Daily Oil Gas Production

• Upstream
• Expanding portfolio of upstream assets in Europe
  and North America
• Total average daily oil and gas production in Q2
  2008 was 119 mboe/d and for H1 08 was 115 mboe/d
• North American upstream operations recorded total
  average daily production during Q2 2008 of 96.7
  mboe/d
• European upstream operations recorded total
  average daily production during Q2 2008 of 22.5
  mboe/d
• Midstream
• Midstream assets in Europe and North America
  highly complementary to upstream activities

mboe/day
Product Mix H1 2008
Upstream revenue comprised 50 of total Q2 2008
revenue up from 4 in Q2 2007 Major contributor
to net profit
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Downstream Performance
Electricity Generation
Water Desalination
Gwh
MIG

• Domestic downstream portfolio continues to
  provide reliable earnings and cash flow
• International power generation activities span
  four countries Ghana, India, Morocco and Saudi
  Arabia and comprised 28 of total power
  generation (Gwh) in Q2 2008
• Technical availability of power generation
  businesses was 94.5 in Q2 2008

Downstream activities comprised 45 of total 2Q
2008 revenues
Downstream revenue includes supplemental fuel
income
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Integration Optimization Update

• TAQA Energy
• Integration of company comprising offshore and
  onshore assets and staff acquired from BP
  Netherlands, headquartered in The Hague
• Integration complete
• TAQA North
• Integration of three companies (Northrock,
  Pioneer, PrimeWest) in North America,
  headquartered in Calgary
• Phase 1 (business as usual) complete
• Preparing cultural assessment and review
• TAQA Bratani
• Acquisition of seven offshore fields, four
  platforms in northern UK North Sea, headquartered
  in Aberdeen
• SPA signed July 7 2008
• Phase 1 (Transition) process underway, handover
  of assets expected in Q4 of 2008
• TAQA will become Operator immediately and Duty
  Holder after having built capability (expected
  2009 2010). Wood Group Energy will be interim
  Duty Holder

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Financial Highlights
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Q2 2008 Financial Comparison
Revenue Breakdown
Strong commodity prices translated into a
significant jump in revenue in the second quarter
of 2008. The CAGR in sales revenue averaged 140.
Q2 2007 Revenue Breakdown
CAGR 140
Upstream
Midstream
Downstream
Q2 2008 Revenue Breakdown
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Six Months Financial Comparison
Revenue Breakdown
Total sales revenue grew 140 per year since the
first half of 2006
H1 2007 Revenue Breakdown
CAGR 140
Upstream
Midstream
Downstream
H1 2008 Revenue Breakdown
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Key Ratios
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Delivering Strong Returns
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Recent Financing Activities

• Convertible Debenture
• Fully subscribed with proceeds totaling AED 4.15
  billion
• Issued in a denomination of AED 1,000 and will
  convert into 500 shares in TAQA at a conversion
  ratio of 21
• Mandatory conversion on September 1, 2008
• Bond Offering Completed
• US 1.0 billion, 6.60 senior notes due in August
  2013
• US 500 million of 7.25 senior notes due in
  August 2018
• Revolving Credit Facility
• Refinancing TAQAs 364 day US 3.1 billion credit
  facility into a three-year facility
• Expect to complete credit agreement during August
  2008

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Summary
Government Ownership Support
Superior Credit Ratings and Solid Financial
Position
Attractive Energy Markets
Prudent Growth Strategy
Experienced Management
Operational Integration Focus
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Questions Answers

• For further enquiries
• Ms. Tanis Thacker Mr. Mohammed Mubaideen
• Head of Investor Relations Senior Associate
  Investor Relations
• O 971 2 691 4933 O 971 2 691 4964
• M 971 50 661 5224 M 971 50 813 0752
• E Tanis.Thacker_at_taqa.ae E Mohammed.Mubaideen_at_taq
  a.ae

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Appendix
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Upstream Realized Prices
Boe converted at 61
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Upstream Average Production
Boe converted at 61
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Upstream Netback Analysis
TAQA North
TAQA Bratani
TAQA Energy
Boe converted at 61
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Upstream Netback Analysis
Boe converted at 61