GAZPROM: 2018 IFRS RESULTS APRIL 29, 2019 1 FY2018 IFRS RESULTS - PowerPoint PPT Presentation

GAZPROM: 2018 IFRS RESULTS APRIL 29, 2019 1 FY2018 IFRS RESULTS

Alexan xander der Ivannik nikov He Head of Departm tment nt 2 FY2018 IFRS RESULTS

DISCLAIMER 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 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, such statements may also occur during the Q&A session. 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 FY2018 IFRS RESULTS

RECORD HIGH RESULTS IN 2018 +3.8% 201.9 +6% 499 Y-O-Y BCM Y-O-Y GAS BCM GAS EXPORT EXPORTED IN PRODUCTION PRODUCED IN TO EUROPE 2018 GROWTH 2018 ROBUST OIL BUSINESS GROWTH 12 YEARS STRONG PERFORMANCE OF ASSOCIATES IN A ROW OF LOWER COSTS DUE TO RUBLE WEAKENING POSITIVE FCF RECORD HIGH DIVIDENDS EBITDA Adj. j. FCF USD bn USD bn 7.8 CAGR 45% 8 40 6.3 6 30 4 41 41 20 1.9 36 36 2 32 32 29 29 0.4 25 25 25 25 24 24 21 21 10 20 20 0 2015 2016 2017 2018 0 2016 1q17 2q17 3q17 2017 1q18 2q18 3q18 4q18 4 FY2018 IFRS RESULTS

STRONG FINANCIAL PERFORMANCE  RECORD HIGH KEY FINANCIAL INDICATORS: SALES, EBITDA, NET PROFIT  8 QUARTERS OF CONSECUTIVE LTM EBITDA GROWTH (IN USD)  2016-2018 EBITDA CAGR AT 45% (IN USD) 2017 vs 2018 RUB bn +26% 5,000 9,000 Adjusted for analytical purposes* 8,000 4,000 +7% +77% +104% +17% +49% +20 x 3,000 8, 224 2,000 2,599 2,217 2,127 1,000 1,639 1,456 488 488 0 4 1 2 3 Sales EBITDA Net profit CAPEX Operating CF adj. FCF adj. Net debt adj. 1 EBITDA adjusted for changes in impairment provisions *In order to reflect the effects of the increase in bank deposits (reported as 2 Profit attributable to PJSC Gazprom’s shareholders for the period part of Other current and Other non-current assets) increase 3 Cash capital expenditures 4 Compared to Net debt as of December 31, 2017 5 FY2018 IFRS RESULTS

GAS BUSINESS Russia ia Europe ope & OC 2 FSU bcm RUB/mcm bcm bcm USD/mcm USD/mcm 4,140 3,981 3,942 274 3,808 300 300 176 300 50 200 246 4000 163 158 157 200 219 40 3000 200 200 200 30 100 2000 242 243 240 20 230 38 100 100 35 100 1000 10 68 73 77 58 11 11 0 0 0 0 0 0 2017 2018 4Q17 4Q18 2017 2018 4Q17 4Q18 2017 2018 4Q17 4Q18 VOLUMES VOLUMES AVERAGE PRICE IN RUSSIA VOLUMES AVERAGE PRICE IN FSU AVERAGE PRICE IN EUROPE&OC +33% +33% +19% +19% +9% +9% RUB bn RUB bn RUB bn 2,951 954 3000 400 349 1000 876 2,221 +20% +2 293 +24% +2 +10 10% 800 300 2000 600 200 318 113 811 400 288 1000 674 91 100 200 0 0 0 2017 2018 4Q17 4Q18 2017 2018 4Q17 4Q18 2017 2018 4Q17 4Q18 3,4 3,4 1 NET SALES TO EUROPE&OC NET SALES TO FSU NET SALES TO RUSSIA Calculations may differ due to rounding. 1 Net of value added tax (VAT) 2 OC - other countries, including LNG sales 3 VAT is not charged on export sales 4 Net of custom duties and excise tax on gas exports 6 FY2018 IFRS RESULTS

OIL AND ENERGY BUSINESS Total tal sales es 1 break eakdown 2017 20 17 2018 20 18 58% 58% CRUDE OIL AND GAS CONDENSATE; REFINED PRODUCTS GAS BUSINESS, TRANSPORTATION AND OTHER REVENUES ELECTRICITY AND HEAT 8% 6% 34% 35% Crude e oil and gas conden ensat ate; e; refined ined product ucts sales Electr tric icit ity and heat t sales +31% +31 +4 +4% RUB bn RUB bn 3,000 600 +27 +27% +4 +4% 2,000 400 2,915 522 522 504 504 2,227 1,000 200 778 778 612 612 160 160 154 154 0 0 2017 2018 4Q2017 4Q2018 2017 2018 4Q2017 4Q2018 Calculations may differ due to rounding. 1 Net of value added tax (VAT), excise tax and custom duties. 7 FY2018 IFRS RESULTS

KEY DEBT METRICS 2018 adjus usted ed Net t Debt t structur ture 1 Tot otal al Debt t breakdo kdown Cash, , cash equiv uivalents alents, , USD bn by curren ency bank k deposit its breakdo kdown n 60 1.2 by curren ency 1.0 12.2 USD 0.8 EUR 25% 40 0.8 11.5 43% 0.02 55.6 USD EUR 43.4 29% 20 0.4 RUB 19% 31.9 54% RUB 20% Other Other 0 0.0 8% 2% Total Debt Cash & Net Debt ST deposits LT deposits Net Debt equivalents reported adjusted Net Debt/EBITDA Net t Debt adjus usted ed for bank k deposit its 1 Tot otal al Debt t maturit rity profile ile USD bn 10.2 USD bn 1.5 1.4 10 8.7 1.5 8.7 8.2 8.4 60 0.8 0.9 1.0 8 6.8 20.8 23.7 0.5 40 17.9 6 20.5 4.6 0.0 20 4 35.9 31.9 28.8 -0.5 26.8 2 0 -1.0 2015 2016 2017 2018 Net Debt adj. 0 2019 2020 2021 2022 2023 2024 After 2024 Cash & equivalents (incl. deposits) Net Debt adj./EBITDA 1 Net Debt adjusted for the bank deposits reported as a part of Other current and non-current assets (see Slide 9 for details). Based on calculations in USD. 8 FY2018 IFRS RESULTS

2018 ADJUSTED FREE CASH FLOW BREAKDOWN FCF ADJUSTED FOR CHANGES IN BANK DEPOSITS REMAINS POSITIVE AT RUB 488 BN ($7.8 BN) IN 2018 RUB bn 2,700 CHANGES IN BANK DEPOSITS 510 510 REPORTED AS A PART OF CHANGES IN WORKING CAPITAL 2,300 239 239 1,900 510 510 305 305 1,500 2,671 1,639 1,100 2,127 1,922 1,617 1,617 700 300 488 488 -100 Net working OCF before Adjustment for capital and Tax paid OCF OCF FCF working capital increase in CAPEX operating items reported adjusted adjusted changes ST deposits changes 9 FY2018 IFRS RESULTS

4Q2018 ADJUSTED FREE CASH FLOW BREAKDOWN FCF ADJUSTED FOR CHANGES IN BANK DEPOSITS REMAINS POSITIVE AT RUB 119 BN ($1.8 BN) IN 4Q2018 RUB bn 600 CHANGES IN BANK DEPOSITS 376 376 REPORTED AS A PART OF CHANGES IN WORKING CAPITAL 400 376 376 694 694 448 448 36 36 567 567 91 91 200 191 191 119 119 0 Net working Adjustment for OCF before capital and Tax paid OCF increase in OCF FCF working capital CAPEX operating items reported ST deposits adjusted adjusted changes changes 10 FY2018 IFRS RESULTS –

CAPITAL EXPENDITURES Cash sh Capex Positiv tive e FCF adj. j. despi spite e high CAPEX EX level el USD bn USD bn 7.8 35 35 + 9 % 30 30 26.2 24.1 0.4 25 25 1.8 20.5 20 20 34.0 15 15 - 6 6 % 26.2 24.5 24.1 22.3 20.5 10 10 7.2 6.7 5 5 0 0 2016 2017 2018 4Q2017 4Q2018 2016 2017 2018 Operating cash flow adj. CAPEX Free cash flow adj. 1 Capex breakdown as provided in Management Report 11 FY2018 IFRS RESULTS