Company Presentation November 2017 DISCLAIMER The information - PowerPoint PPT Presentation

Company Presentation November 2017

DISCLAIMER The information contained herein pertaining to SIBUR (the "Company") has been provided by the Company solely for use at this presentation. By attending this presentation, or by reading these presentation slides, you agree to be bound by the limitations set out below. This presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of, or be relied on in connection with, any contract or investment decision relating thereto. No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. The Company accepts no responsibility for any losses howsoever arising, directly or indirectly, from this presentation or its contents. The material contained in this presentation is presented solely for information purposes and is not to be construed as providing investment advice. As such, it has no regard to the specific investment objectives, financial situation or particular needs of any recipient. There may be material variances between estimated data set forth in this presentation and actual results, and between the data set forth in this presentation and corresponding data previously published by or on behalf of the Company. This presentation contains forward-looking statements, including (without limitation) statements containing the words "anticipates," "expects," "intends," "may," "plans," “forecasts,” "projects," "will," "would", "targets,“ “believes” and similar words. These statements are based on the current expectations and projections of the Company about future events and are subject to change without notice. All statements, other than statements of historical fact, contained herein are forward-looking statements. Forward-looking statements are subject to inherent risks and uncertainties, such that future events and actual results may differ materially from those set forth in, contemplated by or underlying such forward-looking statements. The Company may not actually achieve or realize its plans, intentions or expectations. There can be no assurance that the Company's actual results will not differ materially from the expectations set forth in such forward-looking statements. Factors that could cause actual results to differ from such expectations include, but are not limited to, the state of the global economy, the ability of the petrochemical sector to maintain levels of growth and development, risks related to petrochemical prices and regional political and security concerns. The above is not an exhaustive list of the factors that could cause actual results to differ materially from the expectations set forth in such forward-looking statements. The Company and its Affiliates are under no obligation to update the information, opinions or forward-looking statements in this presentation. 2

SIBUR AT A GLANCE Who We Are Revenue by Segment  Unique integrated gas processing & petrochemicals company Feedstock & Olefins &  One of the highest EBITDA margin in the industry Energy Polyolefins 40 20 worldwide %  Diverse range of products, over 1,400 large customers in approximately 70 countries 7  Credit rating at sovereign level at Moody’s (Ba 1), rated 33 Unallocated (2) Plastics, Elastomers BB+ by Fitch. No history of downgrades throughout the & Intermediates cycle  World-scale investment project underway to triple Revenue by Geography SIBUR polyolefin capacity $ 7.0 bln $ 2.5 bln 34.9% Europe 29 revenue EBITDA EBITDA margin % Russia 58 7 1.8x 23 Ba1 Moody’s Asia 5 1 production sites CIS BB+ Fitch net leverage (1) in Russia Other All above figures represent H1 2017 LTM results. SIBUR’s reporting currency is Russian rouble. Figures in $ were translated at the following $/₽ rates: 57.99 and 63.85 for the semi-annual periods ended 30 June 2017 and 31 December 2016, respectively. 3 (1) Net Debt /EBITDA as of 30 June 2017 in $ terms. (2) Unallocated revenue is primarily derived from sales of EPC-services.

UNIQUE INTEGRATED GAS PROCESSING & PETROCHEMICALS COMPANY… Based on FY 2016 results SUPPLIERS LOGISTICS CLIENTS Olefins & PETROCHEMICALS 1.1 mtpa oil producers gas producers Polyolefins APG (1) NGLs (2) 0.7 mtpa (4) Segment (21.9 bcmpa) (4.0 mtpa) feedstock (3) 3.4 mtpa Plastics, Elastomers & 2.3 mtpa Intermediates gas Segment gas NGLs fractionation processing 7.2 mtpa 5.9 mtpa Feedstock & Energy LPG and naphtha (6.2 mtpa) Segment natural gas (18.2 bcmpa) (1) Associated petroleum gas (APG) is a by-product of oil production. (2) Natural gas liquids (NGLs) include raw NGL, LPG (liquefied petroleum gas) and naphtha. Raw NGL is a by-product of gas production. 4 (3) Includes LPG, naphtha and raw NGL. Composition may vary from year to year depending on market conditions and other limitations. (4) JV sales include PVC, caustic soda (RusVinyl) and PP (Poliom).

…OPERATING THREE HIGHLY PROFITABLE AND DIVERSIFIED BUSINESS SEGM ENTS Plastics, Elastomers & Feedstock & Energy Olefins & Polyolefins Intermediates 2,811 34.5% 42.9% 22.3% 2,315 EBITDA margin EBITDA margin EBITDA margin 1,426 Financial 1,162 904 results 526 ($ mln) External EBITDA External Adj. External EBITDA revenue revenue EBITDA (1) revenue export export export plastics & PP organic synthesis 47 other LPG 43 46 31 1 other 33 elastomers 56 3 Revenue naphtha 34 % % % % % olefins 6 % 16 other 1 structure PE 20 17 15 27 25 53 69 57 BOPP intermediates & MTBE & domestic natural gas domestic domestic other chemicals fuel additives  FMCG, packaging  Chemicals  Utilities & fuels  Utilities & fuels Key end-  Construction  Automotive  FMCG  Petrochemicals markets  Chemicals  Construction Expansion Selective opportunities targeting Flat production (ZapSib, Tobolsk logistics hub) structural changes in domestic Strategy industries Development of tailored grades All above figures represent H1 2017 LTM results. 5 Adjusted EBITDA, including share of the Group’s portion in joint ventures and associates EBITDA (darker shading). (1)

OUTLINE Unique features creating attractive investment opportunity p.7 Contact details p.19 FAQ p.20 Financial profile p.31 6

UNIQUE FEATURES CREATE ATTRACTIVE INVESTMENT OPPORTUNITY COMPETITIVE ACCESS TO STRANDED FEEDSTOCK  Strategic location in Western Siberia ‒ home to the majority of 1 hydrocarbon feedstock reserves in Russia  Extensive infrastructure creating high barriers to entry  Long-term contracts with pricing formulas that result in high margins LEADERSHIP IN ATTRACTIVE DOMESTIC MARKET  Domestic petchem consumption lagging behind developed economies 2  Largest player in domestic petchem ROBUST PROFITABILITY THROUGH THE CYCLES  Portfolio diversification across geographies and demand drivers  Cost base in oil-linked Russian currency and revenues mainly in hard 3 currencies serve as a natural hedge against energy cycles  Complementary energy and petchem businesses resist oil shocks  A leading EBITDA margin in petchem universe UNIQUE GROWTH STRATEGY  Polyolefin production in Western Siberia ̶ efficient monetisation of 4 ample feedstock stranded in the region  ZapSib ̶ large -scale polyolefin capacity in Western Siberia to capture best-in-class margins  Proven track record in execution of investment projects in Russia 7

1 COMPETITIVE ACCESS TO STRANDED FEEDSTOCK STRATEGICALLY LOCATED IN WESTERN SIBERIA ‒ AT THE HEART OF HYDROCARBON FEEDSTOCK RESERVES IN RUSSIA OIL FIELD GAS FIELD feedstock for SIBUR core products for oil & gas companies C 1 C 2 C 3 C 4 C 5 C 6 C 7+ C 1 C 2 C 3 C 4 C 5 C 6 C 7+ Timan - Pechora APG Unstable gas condensate region by- product of oil by- product of gas 2% production production ● Moscow 77% 65% 16% 9% Far East Volga-Urals region Eastern Siberia 5% 7% ● Tobolsk Caspian sea region 8% 10% 1% WESTERN SIBERIA – 2 SIBUR feedstock base 4 % Region’s share in Russian APG production ( 2016) % Region’s share in Russian unstable gas condensate production (2016) 8 Source: Wood Mackenzie.