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C.A.T. oil AG Annual Report 2015: Successful operations under challenging market conditions, but currency and oil price stress earnings and financial results in euro - Seite 2

need for external resources.
- A solid cash position was maintained during the year.
- A conversion program for intergroup debt-to-equity was launched, aiming
to improve profitability of operating units and the Group's equity structure.

Complete utilization of equipment portfolio The entire equipment
portfolio of C.A.T. oil AG was completely utilized throughout 2015.
The company currently has sufficient equipment at its disposal in the
light of the particular situation prevailing on the Russian market
for oil and gas exploration and production. Against the backdrop of
restrained customer investments and price pressure on service fees,
the management of C.A.T. oil pursued a flexible investment policy,
focusing mainly on carrying out the required replacement and
maintenance investments.

Leading position in fracturing Another highlight in the company's
operating business in 2015 was the record level of drilling in the
Orenburg region. Horizontal drilling of more than 1,000 meters was
successfully concluded for the customer Gazprom Neft in only 12.3
days. This unprecedented achievement was also recognized by the
industry. Moreover, the 30,000th fracturing job in the history of the
company was carried out in June/July 2015. This milestone
demonstrates the leading market position of C.A.T. oil AG in the
application of this technology on the Russian market as well as the
high customer satisfaction.

Introduction of a holistic management approach The goal of the new
Management Board is to ensure the further development of C.A.T. oil
Group. In particular, the objective is to quickly and comprehensively
generate synergies in the management and administration of business
operations. Additionally, the new Management Board aims to further
expand the company's high-quality services and develop proprietary
oil field service know-how in order to secure the company's
sustainable competitiveness in the future.

For this purpose, a fully-owned subsidiary of C.A.T. oil directly
below the level of the parent company was established in the fall of
2015. The company, LLC "Petro Welt Technologies", short LLC
"Pe-We-Te" headquartered in Moscow, has the right to issue directives
and intervene in the activities of the operating subsidiaries of
C.A.T. oil AG. Pe-We-Te assumed responsibility for a number of
administrative services from the operating subsidiaries such as
finance, liquidity management, human resources and above all
procurement. This step is designed to serve as the basis for
generating synergies and ensuring the ongoing further development of
unified quality standards.

Revenue development