CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

Our StrengthsOur competitive strengths include:Leading European pure play oil refining company. We are one of the leading pure play oil refining companiesin Europe. Complemented by a strong marketing arm, our refineries consistently boast refining margins that surpassthose of our competitors. We own and operate two refineries in Sweden. Preemraff Lysekil is recognized for itssophisticated configuration. Both Preemraff Lysekil and Preemraff Gothenburg are recognized for their operatingavailability and ability to produce premium refined products, including diesel. Indeed, we are a leader in the productionand sale of diesel in Sweden and one of the largest suppliers of diesel in northwestern Europe. In addition, we are afrontrunner in the refining industry when it comes to anticipating new demands and providing high-value products. Forexample, we are able to produce diesel that meets and, with respect to Swedish Environmental Class 1 diesel (“MK1”),surpasses the highest EU environmental specifications. Since few refineries are capable of meeting these environmentalspecifications, our production of MK1 further supports both our leading position and relative high margins.Largest oil refining company in the Nordic region. With the ability to process 345,000 barrels of crude oil perday, our production capacity represented approximately 30% of the Nordic region’s total refinery capacity andapproximately 80% Sweden’s refinery capacity in 2010, making us the largest oil refining company in the Nordic region.Integrated Product Marketing, Distribution System and Retail Network. We market and distribute refinedpetroleum products via our strategically located network of terminals throughout Sweden. Our extensive terminalnetwork allows us to optimize our distribution across Sweden and northwestern Europe to our retail network, our largecorporate customers and our third-party distributors. Sales through our retail network, which includes 390 Preembrandedservice stations and 180 Såifa-branded diesel truck stops, provide us with a secure and reliable distributionoutlet. Our network of retail outlets in Sweden is also a natural extension of our refining operations and serves as animportant captive distribution channel for our refined petroleum products. Meanwhile, sales to our large corporatecustomers and to third-party distributors allow us to capture additional margins over the bulk spot market. In addition, asa result of our extensive and recognized downstream footprint in Sweden, in 2010 we had the leading market share interms of sales volume of diesel, heating oil and fuel oil with approximately 35% of diesel sales, 49% of heating oil salesand 52% of fuel oil sales, according to the Swedish Statistical Central Bureau.Strategically positioned to access suppliers and key markets. We are able to optimize our working capital as aresult of our refineries’ geographical proximity to our North Sea and Russian suppliers. In addition to the low deliverycosts, we maximize our margins by delivering refined petroleum products to the marketplace before payment is due onthe crude oil used to produce them. Furthermore, because of the close proximity of our refineries to our principal targetmarkets in northwestern Europe, we not only maintain low transportation costs, but we benefit from having access to theinland consumption market in Sweden, our key market.Refining flexibility and high availability rates. Preemraff Lysekil is one of a select number of Europeanrefineries that is fitted with both a hydrocracker unit and a catalytic cracker unit. These units, combined with upgrades toincrease hydrogen production and desulphurization capacity, enable Preemraff Lysekil to process non-standard crude oil,which reduces our dependence on any given crude oil or crude supplier and allows us to optimize margins in response tomarket changes. In particular, Preemraff Lysekil is able process 100% of high-sulphur crude oils, which are typicallypriced at a discount as compared to lighter, sweeter crude oils, giving us a cost advantage over our competitors. Inaddition, both of our refineries consistently maintain high availability rates and are both able to produce significantproportions of high value products, such as diesel and fuel oil, further enhancing our production and refining margins. Aunit for production of bio diesel based on tall oil was commissioned in Gothenburg during 2010. This process allows usto produce second generation bio diesel (based on raw material not competing with food).Sustainable business strategies. Our sustainable business strategies make us one of the most energy andenvironmentally efficient oil refining companies in Europe. While we are known as being at the forefront of developingtraditional petroleum products, we are also recognized as being among the leaders in the development of biofuels, such asthrough our development of tall oil diesel which is the first forest-based green diesel with 16% green content. Inaddition, by selling excess heat to surrounding municipalities, aligning with other energy intensive companies to developwind power stations in Sweden and implementing energy management systems to improve our energy consumption in atargeted, systematic way, we remain focused on reducing our emission levels and energy consumption and being amongthe industry leaders developing more sustainable business practices and energy sources.Experienced senior management team. Our senior management team has over 100 years of combinedexperience in the oil supply and refining industry. Their depth of experience and technical knowledge underscores ourability to develop and implement strategies to align our operations with trends in the refining industry. We believe thatour management team’s continued efforts to improve operating and cost efficiencies across our business segments willstrategically position our business to benefit from improving market conditions.Our StrategyOur business strategy is to enhance our operating margins and strengthen our position as one of Europe’s largest35