1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS AUGUST 10, 2016 Alexander - PowerPoint PPT Presentation

1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS AUGUST 10, 2016

Alexander Ivannikov Head of the Department 2 1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS

DISCLAIMERS This presentation has been prepared by PJSC Gazprom (the “Company”), and comprises the slides for a presentation to investors concerning the Company. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities representing shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any viewer of this presentation considering a purchase of such securities is hereby reminded that any such purchase should be made solely on the basis of the information contained in the prospectus or other offering document prepared in relation thereto and will be subject to the selling restrictions set out therein. The information in this presentation should not be treated as giving investment advice. Care has been taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and reasonable. However, the contents of this presentation have not been verified by the Company. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this presentation. None of the Company or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. The information in this presentation includes forward-looking statements. These forward-looking statements include all matters that are not historical facts, statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties to be set forth in the prospectus, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. No person is under any obligation to update or keep current the information contained herein. By attending the presentation you agree to be bound by the foregoing limitations. 3 1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS

SUMMARY OF 1Q2016 IFRS FINANCIAL RESULTS RR bn 1q15 vs 1q16 (14%) +5% +5% 1,783 (24%) (3%) 1,737 (5%) (6%) %) 674 444 362 237 4 3 1 2 Total net sales Adj. EBITDA Net profit Operating CF Free CF Net debt 1 EBITDA adjusted by changes in impairment provisions 2 Profit for the period attributed to owners of PJSC Gazprom 3 Free cash flow is calculated as Net cash provided by operating activities less Capital expenditures 4 Compared to Net debt as of December 31, 2015 4 2015 IFRS CONSOLIDATED FINANCIAL RESULTS

GAZPROM VS PEERS Top-5 by FCF 1 $ mm 5 000 4 000 3,183 3 000 2 000 1 000 0 3 Gazprom Sinopec PetroChina Rosneft PTT Top-5 by net income 2 $ mm 4,857 5 000 4 000 3 000 2 000 1 000 0 Gazprom Exxon Total Novatek Sinopec Source: Companies’ reports, Bloomberg, Factset 1 Free Cash Flow = Net Cash from operating activities – Cash CAPEX 2 Attributed to shareholders 3 Adjusted for prepayments and operations with securities 5 1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS

HYDROCARBON PRODUCTION, ELECTRICITY AND HEAT GENERATION Natural gas production Gas condensate production Crude oil production bcm mln ton mln ton (3%) %) +2% +6% 200 6 15 4,2 4,1 4,1 129,0 150 9,3 3,7 9,2 9,1 8,9 116,3 3,5 8,8 112,9 10 4 89,0 84,5 100 5 2 50 0 0 0 1q15 2q15 3q15 4q15 1q16 1q15 2q15 3q15 4q15 1q16 1q15 2q15 3q15 4q15 1q16 Electricity generation 1 Heat generation 1 bn kWh mln Gcal (2%) %) +5% 5% 60 80 42,1 40,8 41,4 60 48,9 40 46,4 32,5 29,7 39,0 40 20 17,8 20 8,7 0 0 1q15 2q15 3q15 4q15 1q16 1q15 2q15 3q15 4q15 1q16 1. Includes Russian generating companies: Mosenergo, OGK-2, TGK-1, MIPC Calculations may diverge due to rounding. 6 1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS

GAS SALES Russia Europe & OC 2 FSU bcm RR/1 mcm bcm USD/1 mcm bcm USD/1 mcm 284 3,873 3,779 3,709 100 300 3,568 3,493 251 40 400 140 4000 229 224 120 188 75 30 300 3000 100 200 213 192 182 80 173 50 157 20 200 2000 60 100 59 58 40 80 75 25 10 100 71 1000 39 45 41 13 13 20 40 11 31 8 6 0 0 0 0 0 0 1q15 2q15 3q15 4q15 1q16 1q15 2q15 3q15 4q15 1q16 1q15 2q15 3q15 4q15 1q16 VOLUMES AVERAGE PRICE IN RUSSIA VOLUMES AVERAGE PRICE IN EUROPE & OC VOLUMES AVERAGE PRICE IN FSU +2% +2% +22% +22% (25%) RR bn RR bn RR bn 292 287 735 300 267 800 250 663 250 543 200 600 156 484 200 138 404 150 139 117 150 400 113 100 74 62 100 200 50 50 0 0 0 1q15 2q15 3q15 4q15 1q16 1q15 2q15 3q15 4q15 1q16 1q15 2q15 3q15 4q15 1q16 3,4 1 3,4 NET SALES TO FSU NET SALES TO RUSSIA NET SALES TO EUROPE & OC Calculations may diverge due to rounding. 1 Net of value added tax (VAT) 2 OC - Other countries: including LNG sales 3 VAT is not charged on sales 4 Net of custom duties and excise tax on gas exports 7 1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS

OIL AND ENERGY BUSINESS Net Sales 1 1Q2015 1Q2016 66% 68% CRUDE OIL AND GAS CONDENSATE; REFINED PRODUCTS GAS BUSINESS AND OTHER REVENUES ELECTRIC AND HEAT ENERGY 26% 8% 8% 24% Crude Oil and Gas Condensate; Refined Products Electric and heat energy (3%) (3 +11% +11 RR bln RR bln 468 467 500 456 180 424 413 148 150 133 133 400 120 300 85 74 90 200 60 100 30 0 0 1q15 2q15 3q15 4q15 1q16 1q15 2q15 3q15 4q15 1q16 Calculations may diverge due to rounding. 1 Net of value added tax (VAT), excise tax and custom duties. 8 1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS

CAPITAL EXPENDITURES Cash CapEx Group’s CapEx breakdown 1 2000 RR bn 6% 4% 1,641 +30 30% 1600 1,397 9% -10 10% 1,262 1200 44% 800 444 437 -2% 27% 400 0 10% 2013 2014 2015 1q15 1q16 USD bn 50 TRANSPORT 43.9 -24 24% 40 PRODUCTION OF NATURAL GAS 33.2 -19% 30 27.1 PRODUCTION OF CRUDE OIL AND GAS CONDENSATE 20 REFINING 10 7.1 ELECTRIC AND HEAT ENERGY -18% 8% 5.9 OTHER CAPEX 0 2013 2014 2015 1q15 1q16 1 CapEx breakdown as provided in Management Report 9 1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS

SUSTAINABLE FREE CASH FLOW GENERATION (6%) Free Cash Flow 1 RR bn 350 300 252 237 250 200 160 150 100 29 50 0 -52 -50 1q15 2q15 3q15 4q15 1q16 -100 Gazprom self funding 2 200% 157% 154% 134% 150% 108% 100% 85% 50% 0% 1q15 2q15 3q15 4q15 1q16 1 Free Cash Flow = Net Cash from operating activities – Cash CAPEX 2 Net Cash from operating activities /Cash CAPEX 10 1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS

KEY DEBT METRICS Total and Net Debt Debt maturity profile 2 RUB bn 5000 x 1,2 1,0 22% 26% 25% 4000 0,9 33% 32% 0,9 0,7 3000 0,6 1,359 0,5 33% 45% 1,565 0,6 42% 36% 36% 1,038 2000 689 19% 426 0,3 14% 14% 13% 15% 2,083 1000 1,783 1,651 1,113 1,075 22% 18% 19% 20% 17% 0 0,0 2012 2013 2014 2015 1q16 2012 2013 2014 2015 1q16 NET DEBT LESS THAN 1 YEAR 1-2 YEARS 2-5 YEARS MORE THAN 5 YEARS CASH&CASH EQUIVALENTS 1 NET DEBT/ADJ.EBITDA LTM Cost of debt financing Gazprom credit ratings Dagong, Moody's S&P, Fitch 10 AAA Aaa % AA Aa 8 A+ A1 6.36% A A2 6 A- A3 5.65% BBB+ Baa1 4 BBB Baa2 4.01% BBB- Baa3 2 BB+ Ba1 BB Ba2 0 BB- Ba3 2008 2009 2010 2011 2012 2013 2014 2015 1q16 B+ B1 WEIGHTED AVERAGE FIXED INTEREST RATE Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan WEIGHTED AVERAGE FLOATING INTEREST RATE 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 WEIGHTED AVERAGE INTEREST RATE S&P MOODY'S FITCH DAGONG INVESTMENT GRADE SOURCE CE: BLOOMBERG, COMPA PANY DATA 1 Calculated using dollar values of Net debt and EBITDA 2 Excluding promissory notes 11 1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS