GAZPROM: 2Q2019 IFRS RESULTS AUGUST 29, 2019 1 2Q2019 IFRS RESULTS - PowerPoint PPT Presentation

GAZPROM: 2Q2019 IFRS RESULTS AUGUST 29, 2019 1 2Q2019 IFRS RESULTS

Alexan xander der Ivannik nikov He Head of Departm tment nt 2 2Q2019 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 2Q2019 IFRS RESULTS

2Q2019 MARKET ENVIRONMENT HIGHLIG LIGHTS +2.1% • GAS EXPORT VOLUMES * TO EUROPE IN 2Q2019 INCREASED BY 3% Y-O-Y • GAZPROM PRICES IN EUROPE IN 2Q2019 WERE HIGHER THAN SPOT PRICES WEATHER R INDEX EX IN EURO ROPE AVERA ERAGE E GAS S PRICES USD/mcm 20000 Range (2000-2018) 300 Average (2000-2018) 15000 2018 HDD+CDD* 2019 200 10000 100 TTF 1 Month Ahead 5000 0 0 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Jan Feb Mar Apr Jul Jun Jul Aug Sep Oct Nov Dec AVERA ERAGE E USD/RUB EXCHANGE E RATE END OF PERIOD OD USD/RUB EXCHANGE E RATE -3% +5% 65 • RUBLE WEAKENING 65 • DURING 2Q2019 64 RUBLE BY 5% Y-O-Y WAS 60 63 STRENGTHENED FAVORABLE FOR 64.73 64.55 63.08 62 55 BY 3% WHICH EBITDA MARGIN 61 61.77 RESULTED IN 50 60 Mar 31, 2019 Jun 30, 2019 2Q2018 2Q2019 FX GAINS *Under Gazprom Export LLC. contracts 4 2Q2019 IFRS RESULTS

2Q2019 KEY FINANCIALS  ROBU BUST ST OIL, L, ELECTRICIT ECTRICITY AND D HEAT AT BUSINESS INESS GRO ROWT WTH  FX FX GAINS INS: RR 35 BN IN 2Q2019  FCF ADJ. J. NEGA EGATIV IVE E DUE TO HIGH GH TAX X PAYME YMENT NTS Adjusted for analytical purposes* 2Q2018 vs 2Q2019 RUB bn 0% 2,400 -3% 1,900 1,400 -35% -13% +16% -2% 2,070 900 1,785 400 497 497 347 347 301 301 292 292 -100 -55 55 1 4 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 changes in bank deposits (reported as 2 Profit attributable to PJSC Gazprom’s shareholders for the period part of Other current assets and Other non-current assets) 3 Cash capital expenditures 4 Compared to Net debt as of March 31, 2019 5 2Q2019 IFRS RESULTS

GAS BUSINESS Europe ope & OC 2 FSU Russia ia bcm RUB/mcm bcm bcm USD/mcm USD/mcm 181 274 176 15 200 4,140 4,141 80 300 167 259 4,020 251 100 3,831 3,823 238 155 149 4000 250 208 150 60 75 10 200 3000 100 40 150 50 12 2000 84 11 62 5 77 56 57 57 58 100 50 7 7 7 20 25 1000 42 41 50 33 0 0 0 0 0 0 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 VOLUMES AVERAGE PRICE IN FSU VOLUMES AVERAGE PRICE IN RUSSIA VOLUMES AVERAGE PRICE IN EUROPE & OC +7% +7% (9%) +12% +12% RUB bn RUB bn RUB bn 837 117 811 400 113 349 729 318 800 653 100 596 300 600 69 62 56 169 200 158 400 128 50 100 200 0 0 0 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 3,4 3,4 1 NET SALES TO RUSSIA NET SALES TO EUROPE & OC NET SALES TO FSU 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 2Q2019 IFRS RESULTS

OIL AND ENERGY BUSINESS Total tal sales es 1 break eakdown 2Q20 2018 18 2Q20 2019 19 53% 55% CRUDE OIL AND GAS CONDENSATE; REFINED PRODUCTS GAS BUSINESS, TRANSPORTATION AND OTHER REVENUES ELECTRICITY AND HEAT 41% 6% 39% 5% Crude e oil and gas conden ensat ate; e; refined ined product ucts sales Electr tric icit ity and heat t sales +2% +2% +6% +6% RUB bn RUB bn 800 200 600 400 800 800 100 778 778 717 717 729 729 697 697 173 173 160 160 200 104 104 99 99 88 88 0 0 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Calculations may differ due to rounding. 1 Net of value added tax (VAT), excise tax and custom duties. 7 2Q2019 IFRS RESULTS

IMPACT OF BANK DEPOSITS  Early withdrawal clause Key features of bank deposits 2 :  Deposit term of over 3 months Impact of bank deposits on Net debt: Impact of changes in ST bank deposits on Cash flows:  Bank deposits are NOT included in С ash and cash  Changes in working capital (a part of Operating cash flows) equivalents include changes in ST bank deposits  Net Debt and Net Debt/EBITDA need to be adjusted for  Operating cash flows and Free cash flow need to be adjusted bank deposits for analytical purposes for changes in ST bank deposits for analytical purposes ST and LT bank deposits volumes ST bank deposits changes RUB bn RUB bn 79 798 767 767 500 800 1 1 300 487 487 600 510 510 330 330 0 400 796 796 100 766 766 243 243 186 186 2 487 487 -78 78 -30 30 200 -100 42 42 328 328 -279 279 144 144 0 -300 2016 2017 2018 1Q2019 2Q2019 2016 2017 2018 1Q2019 2Q2019 ST DEPOSITS LT DEPOSITS Applying of LT and ST bank deposits is aimed at improving the efficiency of liquidity management 1 Source: Gazprom 2Q2019 IFRS report, note 13 2 Reported as a part of Other current assets and Other non-current assets 8 2Q2019 IFRS RESULTS

KEY DEBT METRICS 2Q2019 adjus usted ed Net Debt structu ture re 1 Tot otal al Debt t breakdo kdown Cash, , cash equiv uivalents alents, , by curren ency bank k deposit its breakdo kdown n USD bn by by curren ency 60 1.2 Net Debt/EBITDA 1.1 18.3 0.9 USD EUR 16% 46% 40 0.8 0.00 7.7 58.8 USD EUR RUB 23% 21% 60% 40.5 20 0.4 32.8 RUB 23% Other Other 8% 3% 0 0.0 Total Debt Cash & Net Debt ST deposits LT deposits Net Debt equivalents reported adjusted Net t Debt adjus usted ed for bank k deposit its 1 Tot otal al Debt t maturit rity profile, ile, 2Q2019 USD bn 1.5 1.4 100 1.5 44% 80 0.9 0.9 1.0 0.8 60 25% 20.8 26.0 23.7 18% 40 17.9 20.5 0.5 13% 20 35.9 32.8 31.9 28.8 26.8 0 0.0 2015 2016 2017 2018 2Q2019 2Q2019 Less than 1 year 1-2 years 2-5 years More than 5 years Net Debt adj. Cash & equivalents (incl. deposits) Net Debt adj./EBITDA 1 Net Debt adjusted for the bank deposits reported as a part of Other current assets and Other non-current assets (see Slide 8 for details). Based on calculations in USD. 9 2Q2019 IFRS RESULTS