Disclaimer FORWARD-LOOKING STATEMENTS: DISCLAIMER The presentation may contain forward-looking statements about future events We undertake no obligation to publicly update or revise any forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, statements, whether as a result of new information or future events or for any other reason. Figures for 2017 on are estimates or targets. and Section 21E of the Securities Exchange Act of 1934, as amended, that are not based on historical facts and are not assurances of future results. Such All forward-looking statements are expressly qualified in their entirety by this forward-looking statements merely reflect the Company’s current views and cautionary statement, and you should not place reliance on any forward-looking estimates of future economic circumstances, industry conditions, company statement contained in this presentation. performance and financial results. Such terms as "anticipate", "believe", In addition, this presentation also contains certain financial measures that are "expect", "forecast", "intend", "plan", "project", "seek", "should", along with not recognized under Brazilian GAAP or IFRS. These measures do not have similar or analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these statements are only projections standardized meanings and may not be comparable to similarly-titled measures and may differ materially from actual future results or events. Readers are provided by other companies. We are providing these measures because we use referred to the documents filed by the Company with the SEC, specifically the them as a measure of company performance; they should not be considered in isolation or as a substitute for other financial measures that have been disclosed Company’s most recent Annual Report on Form 20-F, which identify important in accordance with Brazilian GAAP or IFRS. risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties NON-SEC COMPLIANT OIL AND GAS RESERVES: inherent in making estimates of our oil and gas reserves including recently CAUTIONARY STATEMENT FOR US INVESTORS discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and We present certain data in this presentation, such as oil and gas resources, that our ability to obtain financing. we are not permitted to present in documents filed with the United States Securities and Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K because such terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X. 2
Continuous strategic monitoring: long term focus and 3 new strategies with a of energy, An unique that evolves creating high with focus integrated technical with society value on oil and company capability gas STRENGTHENING OF COST DISCIPLINE EXPLORATORY TECHNOLOGICAL ACTIVE PORTFOLIO GOVERNANCE PORTFOLIO COMPETENCIES MANAGEMENT BEST PRACTICES RECOVERY OF PROCUREMENT WITH E&P PROJECTS DEEP WATER RESTRUCTURING OF PORTFOLIO CREDIBILITY A VALUE FOCUS PRODUCTION THE ELECTRIC DEVELOPMENT ENERGY BUSINESS MERITOCRACY EXIT FROM NON-CORE LOW CARBON ECONOMY BUSINESSES RESERVES LOW BREAKEVEN INCORPORATION PRICE PROJECTS DIGITAL MAXIMIZATION OF GAS PRICING POLICY TRANSFORMATION VALUE FINANCIAL AND RISK MANAGEMENT 3
Preparing the company for a future basedon a low carbon economy Developing high value Reducing carbon Investing and promoting new businesses for emissions on our production processes technologies to renewable energies reduce impacts on climate changes 4
Capturing opportunities generated by the digital transformation Value generation through digital solutions for reservoir management and geological processes (geophysics, geochemistry and petrophysics) Automation Big data Cloud computing Artificial intelligence High performance computing 5
Optimizing the company’ s financial and risk management Improvement on cash management, increasing predictability and optimizing size and allocation Reduction on risks associated to the company’s cash flow 6
OUR MAIN METRICS Safety Financial Anticipated in 2 years Target maintained 1.0 in 2018 2.5 in 2018 TOTAL RECORDABLE INJURY NET DEBT/ADJUSTED EBITDA FREQUENCY RATE (TRI)* *Number of reportable injuries per million man-hours 7
Safety TRI 2.2 TOTAL RECORDABLE INJURY FREQUENCY RATE (TRI)* 1.6 1.1 Actual Actual 1.0 2.2 1.1 1.0 2015 3Q17 in 2018 2015 2016 2017 2018 Peers average 50% reduction 8
Financial Net Debt / Adjusted Ebitda 5.1 NET DEBT / ADJUSTED EBITDA 3.2 2.5 Actual Actual 5.1 3.2 2.5 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q18 2015 3Q17 in 2018 By 2022: metric converges to 40% reduction the global average of the main oil and gas companies rated as investment grade 9
Main planning assumptions Nominal exchange rate Brent Prices (R$/US$) (US$/barrel) 100,0 80,0 73 3.80 60,0 70 3.69 66 3.62 3.55 58 3.48 3.44 53 53 40,0 46 3.17 20,0 0,0 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Range of Estimates Focus Range (11/03/2017) Source of estimates: IHS – Jul/2017 (Scenarios Rivalry and Autonomy), PIRA – Sept/2017 (Scenario Reference, High and Low), EIA – International Energy Outlook Sept/2017 (High Price, Low Price, Reference). 2017 values represent the average until Nov 7, 2017. 10
Net Debt/EBITDA Sensitivity to Brent BRENT Net Debt US$/BBL Adjusted Ebitda 4,5 50.0 3.7 4 Net Debt/Ebitda 3,5 Planning 53.0 3.3 assumption 3 60.0 2.7 2,5 Futures 62.4 2.5 prices* 2 Spot 64.0 2.4 Prices* 1,5 45 55 65 75 70.0 2.0 Brent 62.4 *Data from December 20, 2017 (US$/bbl) Monthly average values for ICE Brent futures contracts for 2018 (Feb to Dec/18) 11
Continuous reduction and improvement in debt profile Average maturity (years) and Indebtedness (US$ billion) Average rate (% p.y.) 8.36 7.88 7.61 7.46 7.33 123 118 115 114 114 6.3 6.2 6.2 6.1 5.9 102 3Q16 4Q16 1Q17 2Q17 3Q17 Maturity Average rate 100 96 95 Total amortizations of principal in 2018, 2019 and 2020 (US$ billion) 89 88 48.1 77 27.5 3Q16 4Q16 1Q17 2Q17 3Q17 4Q18 Position in 12/31/2014 Position in 11/30/2017* Gross debt Net debt * Does not include pre-payment of US$ 2.8 billion with CDB (due in 2019) 12
Additional initiatives with impacts on cash flow Increase in market-share through an active pricing policy Additional reduction in disbursements (opex and capex) Acceleration in divestments with a US$ 5 billion increase in potential portfolio 13
Start- up of 19 new production units by 2022 TARTARUGAS VERDE E MESTIÇA (99%) LULA NORTE P-67 (99%) BERBIGÃO REVIT. DE MARLIM P-68 (88%) MÓD. 1 LULA EXTREMO SUL REVIT. DE MARLIM P-69 (91%) MÓD. 2 OWNED LEASED BÚZIOS 1 INTEGRADO PARQUE P-74 (96%) DAS BALEIAS POS-SALT BÚZIOS 2 SERGIPE-ÁGUAS PRE – SALT (CONCESSION) MERO 1 P-75 (92%) PROFUNDAS TRANSFER OF RIGHTS PSA BÚZIOS 3 ATAPU 1 BÚZIOS 5 MERO 2 P-76 (93%) P-70 (88%) Completion (%) BÚZIOS 4 EGINA ITAPU SÉPIA P-77 (90%) Egina FPSO (85%) 2018 2019 2020 2021 2022 14
Increase in oil and gas production 3.5 OIL + GAS INTERNATIONAL 3.4 NATURAL GAS BRAZIL 2.9 2.7 2.6 2.1 OIL BRAZIL Million boe/d 2018 2019 2020 2021 2022 Note: Considers divestments 15
Focus on the most profitable invesment projects CAPEX 2018-2022 Annual Capex 17.3 16.6 15.8 18% 2.9 14.2 1% 2.6 3.8 2.0 74.5 10.5 E&P Refining and 1.9 Natural Gas US$ billion 14.2 13.9 Other segments 12.0 11.9 8.4 81% 2022 2021 Note: incorporates reductions from divestments 2018 2019 2020 Capex was maintained at the same level of the previous plan 16
E&P Investments CAPEX 2018-2022 E&P 58% of the 2018-2022 capex will Post- be deployed on the pre-salt, Investments Salt which presents a higher Pre-salt 42% by layer profitability relative to post-salt 58% assets 12% 11% 60.3 Increase in value associated to Active portfolio Return US$ billion capex allocation, strategic management partnerships and divestments Risk 77% Focus on the most profitable BMP projects Reduction on 14-18 Exploration BMP BMP break-even 43 17-21 More competitive costs 18-22 Production Development Brent 30 29 Infrastructure + R&D Resilience to price levels 17
Refining and Natural Gas Investments CAPEX 2018-2022 RNG Investments in pipelines, gas Natural Gas pipelines and natural gas Logistics processing units to offload pre-salt production 6% 13.1 28% Investments focused on diesel Diesel Quality and quality and the 2nd phase of the RNEST refinery, for which Refining Expansion US$ billion partnerships are still being 66% sought $ Investments in safety, Operational Refining, Transportation and Marketing maintenance and focus on Maintenance the assets ’ operational Natural Gas and Power efficiency Distribution and Biofuels 18
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