Investor Day Presentation - Gazprom

GAZPROM INVESTOR DAY GAS BUSINESS FEBRUARY 2015 HONG KONG, SINGAPORE

AGENDA

PRESENTATION SPEAKERS

Strategy

Upstream

Dmitry Lyugai

Vsevolod Cherepanov

Member of Gazprom Management Committee Head of the Department

Member of Gazprom Management Committee Head of the Department

Export

Finance

Alexander Medvedev

Andrey Kruglov

Deputy Chairman of Gazprom Management Committee

Deputy Chairman of Gazprom Management Committee Head of the Department

Oil Business

Power Generation

Alexei Yankevich

Denis Fedorov

Member of the Management Board of Gazprom Neft Deputy CEO for Economics and Finance of Gazprom Neft

Head of Gazprom Directorate General Director of Gazprom Energoholding

Project Finance Oleg Nagovitsyn General Director of Gazprom Investproject

INVESTOR DAY 2015 HONG KONG, SINGAPORE

2

DISCLAIMER This presentation has been prepared by OJSC Gazprom and its consolidated subsidiaries (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. No reliance may be placed for any purposes whatsoever on the information contained in this presentation, or any other material discussed at any presentation or on its completeness, accuracy or fairness. 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. INVESTOR DAY 2015 HONG KONG, SINGAPORE

3

5

STRATEGY

19

UPSTREAM

26

EXPORT

37

FINANCE


4

STRATEGY DMITRY LYUGAI MEMBER OF GAZPROM MANAGEMENT COMMITTEE – HEAD OF THE DEPARTMENT


5

GAZPROM AT A GLANCE SHORT OVERVIEW

Gazprom is a Russian global energy company

History 1906

First commercial gas production from Russian gas field – “Dagestanskye Ogni” (Derbent city)

Its major business lines are: 

Geological exploration

1943

First Russian trunk gas pipeline “Buguruslan-Kuybyshev (Samara)”



Production

1948

Natural gas production department set up at the Ministry of oil industry



Transportation and Storage

1965

USSR Gas Industry Ministry established



Processing and sales of gas, gas condensate and oil

1973

First Russian gas delivered to Europe



Sales of gas as a vehicle fuel

1989

USSR Gas Industry Ministry restructured into Gazprom State Gas Concern



Generation and marketing of heat and electric power

1993

ON THE BASIS OF GAZPROM STATE GAS CONCERN RUSSIAN JOINT-STOCK COMPANY "GAZPROM" (RAO "GAZPROM") WAS ESTABLISHED WHICH WAS TRANSFORMED IN 1998 INTO OPEN JOINT-STOCK COMPANY "GAZPROM" (OAO "GAZPROM")

2005

Gazprom acquired “Gazprom neft” (formerly “Sibneft”)

GAZPROM is involved in hydrocarbon exploration and production projects in more than 10 foreign countries, incl. Algeria, Bolivia, Bosnia and Herzegovina, Great Britain, Hungary, Venezuela, Vietnam, Iraq, Kyrgyzstan, Romania, Tajikistan, Uzbekistan.

2007-2009 Gazprom entered into the energy business (consolidated under “Gazprom Energoholding”)

Achievements for 22 years

Gazprom revenue structure1 1993

12 tcm

GAS PRODUCED

546 mm tons

OIL AND GAS CONDENSATE PRODUCED

8.6 tcm

NEW GAS RESERVES DISCOVERED

2013 GAS

24% 100%

OIL

7% 69%

33 THOUSAND KM OF SOURCE: GAZPROM DATA


POWER

NEW PIPELINES BUILT 1

According to International Financial Reporting Standards (IFRS)

6

GAZPROM IN FIGURES Gas reserves #1 WORLD

Oil and gas condensate production #1 RUSSIA 

72%

17%

Gazprom gas reserves (A+B+C1) – 36 tcm, incl. onshore – 29 tcm, offshore – 7 tcm

RUSSIA 

9%

Gas production #1 WORLD

#1 RUSSIA

14%



73%





Gazprom Group gas production – 487 bcm Number of active gas production wells – 7,263 Number of producing fields – 131

Electric power and heat generation    

Gas transport system    

Length of Gazprom’s trunk pipelines in Russia – 169 thousand km Aggregate active capacity of 26 UGSF1 in Russia – over 70 bcm Access to active capacity of UGSF in Europe – above 4 bcm Natural gas transported via GTS2 in Russia – 659 bcm

Gas processing   

1

2

Processing volumes – 32 bcm Gas processing capacity – 54 bcm Oil and gas condensate refining – 66 mm tons

Underground gas storage facility Gas transportation system

SOURCE: GAZPROM ANNUAL REPORT 2013, GAZPROM IN FIGURES 2009-2013 FACTBOOK




Gazprom Group oil and gas condensate production — 69 mm tons Number of active oil production wells — 7,246

Total electric power generating capacity — 39 GW Total heat generating capacity — 73 Tcalh Total electric power generated — 163 billion kWh Total heat generated — 113 mm Gcal

Marketing    

Largest gas export company European gas market share — 30% Russian gasoline station oil product sales share — 13% Russian electric power generation share — 15%

Personnel Number of employees — 459,500, including:  gas production, transportation, underground storage and processing subsidiaries — 228,600  Gazprom neft — 62,800  Gazprom Energoholding — 50,800  overseas companies — 27,400 All figures are dated of 31.12.2013 Calorific value of natural gas = 8,850 kcal/m3 (20 0С )

7

GAZPROM GROUP’S MISSION AND STRATEGIC GOAL

MISSION

STRATEGIC GOAL

RELIABLE, EFFICIENT AND BALANCED SUPPLY OF NATURAL GAS, OTHER ENERGY RESOURCES AND REFINED PRODUCTS TO CONSUMERS

ESTABLISH ITSELF AS A LEADER AMONG GLOBAL ENERGY COMPANIES BY DIVERSIFYING SALES MARKETS, ENSURING RELIABLE SUPPLIES, IMPROVING PERFORMANCE AND UTILIZING R&D POTENTIAL

BUSINESS TYPE EXPLORATION AND PRODUCTION


TRANSPORTATION AND STORAGE

PROCESSING AND ENERGY PRODUCTION

MARKETING AND SALES

8

WORLD GAS DEMAND Share of natural gas in world total primary energy consumption 2030 FORECAST

Natural gas consumption by region 2013

20%

17% 23%

9%

3.6

3%

4%

24% 13%

6%

26%

tcm

5%

2013 NORTH AMERICA

14% 19%

LATIN AMERICA

30%

OECD EUROPE OTHER EUROPE AND EURASIA 2030 FORECAST

33%

26%

28%

MIDDLE EAST

5% GAS

OIL

COAL

NUCLEAR

RENEWABLES

AFRICA

24%

25%

4.8 tcm

ASIA OCEANIA

5% 12%

13% 16%


9

GAZPROM ON THE RUSSIAN DOMESTIC MARKET Structure of Gazprom’s gas sales revenue, 20131 58%

774

740

3 000 2 000

300

0

265

250

2011

360

4 000

3,394

2,964 723

bcm

400

228

2012 2013 GAZPROM GROUP’S SALES IN RUSSIA (BCM) REVENUE (RR BN) DOMESTIC AVERAGE PRICE (RR/MCM)

1 000

RR/mcm

bcm; RR bn

600

2,725

FSU COUNTRIES RUSSIA

27% 900

500

EUROPE

15%

Gas deliveries to Russian consumers2

300

200

0

Gazprom is responsible for the large-scale Program for Expansion of Gas Infrastructure in Russian Regions. Level of natural gas gasification in Russia grew from 53.3% to 65.3% between 2005 and 2013. Length of Russian gas distribution system, operated by Gazprom Group, is 716 thousand kilometers.

100 2015

Total final consumption OIL 14%

20%

COAL 14%

52% GAS

1 2

not including custom duties incl. gas purchases from other companies


2025

2030

2030 ENERGY STRATEGY OF RUSSIA (PROJECT) OTHER OIL 13% 20% COAL 15%

2014

OTHER

2020

52%

GAS SHARE STABILIZATION IN FUEL AND ENERGY BALANCE

GAS

SOURCE: GAZPROM IN FIGURES 2009-2013 FACTBOOK, GAZPROM DATA

10

EUROPE: GAZPROM’S TRADITIONAL MARKET Forecast — gas production vs. consumption in Europe 700

Gazprom’s pipeline gas deliveries to Europe 300

bcm

600

bcm

CONSUMPTION

500

200

~400

400

■ ■ ■ ■ ■

decrease of indigenous gas production in Europe no success in shale gas developments close of nuclear energy development increase of gas consumption in transportation sector new sectors of gas consumption

■ ■ ■ ■ ■

regasification terminals network development European policy – diversification of suppliers and supply routes regulatory frameworks in energy sector become tougher policy in energy savings and energy efficiency subsidizing of renewable energy sources

PRODUCTION

300

100

200

100 2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

0

Shale gas in Europe — an expected setback Estimated shale gas technically recoverable resources – 16.9 tcm Rest of France Ukraine Romania Europe Poland 4.2 3.9 3.6 1.4 3.7

0 2010

2015

2020

2025

2030

Gazprom’s share in the European market 2013

2030

30%

30% MAX

MIN

Recent progress and current state of development SOURCE: WOOD MACKENZIE, EIA, PLATTS, ERI RAS, IEA, IHS, RYSTAD ENERGY, BP


JSC "GAZPROM"

OTHER SOURCES OF GAS

11

GAZPROM: UPSTREAM DEVELOPMENT Field productivity plateau, bcm/year1 Urengoyskoye (Achimov deposits) 25 Pestsovoye (Neocomian-Jurassic) 2 Yubileynoye (Apt-Albian, Senomanian deposits) 2 Bovanenkovskoye 115 Kharasaveiskoye 32 Severo-Kamennomysskoye 16 Kamennomysskoye-sea 15 Kirinskoye 6 Kirinskiy licensed section 16 Key Gazprom gas greenfields

North of West Siberia and Yamal peninsula Fields Pre-Yamal shelf Pechorskoye Sea shelf Kharasaveiskoye Bovanenkovskoye Pestsovoye Yubileynoye

Severo-Kamennomysskoye Kamennomysskoye-sea Urengoiskoye

RUSSIA

Chayandinskoye Kovyktinskoye

Chayandinskoye

Eastern Siberia and Far East Fields Kovyktinskoye Gas field

25 35

«Sakhalin-3» Kirinskoye Kirinskiy licensed section

Continental shelf

Prospective sources of Gazprom’s gas production 800 OTHER NEW FIELDS

bcm

600

EAST SIBERIA AND FAR EAST FIELDS

400

YAMAL MEGAPROJECT

200

JSC GAZPROM NEFT OPERATING FIELDS

0 2013

2020 min

2030 min

2020 max

2030 max

SOURCE: GAZPROM IN FIGURES 2009-2013 FACTBOOK, GAZPROM DATA 1 whole number rounding


12

KEY CURRENT AND PROSPECTIVE RUSSIAN NATURAL GAS EXPORT DESTINATIONS

Sakhalin-Khabarovsk-Vladivostok Power of Siberia

Altai project

- current Russian natural gas export destinations - prospective and ongoing Russian natural gas export projects - operating LNG projects - prospective LNG projects


13

GAZPROM IN LNG MARKET

800

World LNG demand and production forecast

Mln t/year

LNG PLANTS UNDER CONSTRUCTION OPERATING LNG PLANTS OPTIMISTIC CONSUMPTION FORECAST

World total in 2014: ■ 19 LNG exporting countries, 30 LNG importing countries, incl. 3 LNG exporting/importing countries ■ 39 operating LNG plants with total capacity of 414 bcm (302 mm t/year), 19 LNG plants under construction with total capacity of 178 bcm (129 mm t/year) ■ 108 operating and 21 under construction regasification terminals

PESSIMISTIC CONSUMPTION FORECAST

Baltic LNG

600

RUSSIA Sakhalin-2 Vladivostok LNG

400

200

SOURCE: WOOD MACKENZIE


2030

2025

2020

2015

2010

2005

0

LNG EXPORTERS

OPERATING LNG PLANT

LNG IMPORTERS

PROSPECTIVE LNG PLANT

LNG EXPORTERS/IMPORTERS

14

GAS INFRASTRUCTURE DEVELOPMENT IN EASTERN SIBERIA AND FAR EAST REGIONS Transportation site

Date when put into operation (not earlier)

Length, km

Trunk pipeline “Power of Siberia”

2018

4,000

Fields Pipelines: existing under construction possible designed

Power of Siberia trunk pipeline

Operating trains of LNG plants Prospective trains of LNG plants

CHINA Production sites Chayandinskoye Kovyktinskoye (incl. Chikanskoye field) INVESTOR DAY 2015 HONG KONG, SINGAPORE

Date when put into operation (not earlier)

Plateau production, bcm/year

2018 2022

25 35

15

RUSSIAN — CHINA GAS DEAL MAIN CHARACTERISTICS

CONTRACT VOLUME

CONTRACT LIFETIME YEARS

BCM per YEAR

 

CHINA GAS CONSUMPTION 10 YEARS AGO 10% OF CHINESE GAS MARKET AFTER RAMPING UP



INVESTMENT

CONTRACT VALUE

$ BLN



CAPITAL INVESTMENT COMPARABLE WITH AUSTRALIAN GORGON PROJECT ($54 BLN*), RUSSIAN PROJECT VOLUME 75% HIGHER

PERIOD COMPARABLE WITH TRUNK GAS PIPELINE LIFE TIME

$ BLN



TOTAL AMOUNT OF GAZPROM INVESTMENT PROGRAM FOR LAST 10 YEARS

SOURCE: * WOODMACKENZIE, IHS PFC ENERGY


16

RUSSIAN — CHINA GAS DEAL BOTTOM OF THE ICEBERG GAS DEAL For Gazprom

For CNPC



Market diversification



Favorable pricing versus LNG



Russian pipeline natural gas popularization in the Asia Pacific Region market



Pipeline supply sources diversification



Natural gas supply sources diversification (from LNG)



Sales of Russian pipeline natural gas increase



Strengthening the company’s position in the gas supply market



Market niche decreasing for new high-cost LNG suppliers



Basic for “west” route negotiation



Long-term leadership in a strategic market – helium



Benchmark for Asia Pacific Region gas prices

RELIABILITY OF SUPPLIES DUE TO LACK OF TRANSIT RISK For Russia       

 

 

Trade and economic Russia-China cooperation widening Trade balance equalization New well-paid high-skilled jobs Fuel and energy balance optimization in Eastern Siberia and the Far East regions Contribution to GDP, taxes and duties Reduction of unemployment rate in Eastern Siberia and the Far East regions Geopolitical interests Eastern Siberia and the Far East regions gasification Gas processing and gas chemical industries development. High added value products: helium, ethylene, propylene, polyethylene, polypropylene, ethylene glycol Contribution to Russian natural gas production Large order for manufacturers


For China 

Trade and economic Russia-China cooperation widening



New well-paid high-skilled jobs



Fuel and energy balance optimization (gas share increasing)



Providing secured sources of supply for growing gas demand



Border territories gasification



Increase of chemical production imports from Russia



Large orders to manufacturers. New jobs



Ecological issues solution: decreasing emissions of CO2, SO2, NOx and ashes

17

FORECAST OF CAPITAL INVESTMENTS Structure of CAPEX by gas business segment average annual 2015-2030 approx. 24 bln USD*

GAZPROM’S DEVELOPMENT PROGRAM OVER A TENYEAR PERIOD

GAZPROM'S INVESTMENT PROGRAM

INNOVATIVE DEVELOPMENT PROGRAM TO 2020

PROCESSING, LNG

12 %

TRANSPORT (incl. UGS**)

46 %

PRODUCTION

38 %

EXPLORATION

4%

*

May vary depending on USD/RUB & EUR/RUB exchange rate ** UGS is underground gas storage UGSS is unified gas supply system

Structure of CAPEX by major project YAMAL MEGAPROJECT

28%

EASTERN SIBERIA AND THE FAR EAST* OTHER PROJECTS*

53% 19%


*

exploration; existing and new production and transport projects, processing and LNG projects

18

UPSTREAM VSEVOLOD CHEREPANOV MEMBER OF GAZPROM MANAGEMENT COMMITTEE – HEAD OF THE DEPARTMENT


19

2014 GEOLOGICAL EXPLORATION RESULTS Russian gas reserves Independent Producers 24%

4% Unallocated fund

Gazprom’s huge hydrocarbon reserves and longest reserve life bboe

140

123 (37 yrs)

120

Gazprom 72%

89 (12 yrs)

100

96 (17 yrs)

80

60

Global gas reserves 40 Gazprom 17 %

20

0 Gazprom

Supermajor Combined

Major Emerging Markets Combined

X - 2013 total proved reserves of hydrocarbons (bboe) (X) - Reserve life in years based on 2013 total proved reserves and 2013 production of hydrocarbons SOURCES: BLOOMBERG, COMPANY’S DATA


20

SUMMARY GAS RESERVES INFORMATION

Natural Gas, tcm С2(2)

АВС1(1)

С2(2)

АВС1(1)

С2(2)

36.1

10.1

1,444.4

679.6

1,937.2

1,594.4

Discovery of 1 new field and 8 new deposits within previously discovered fields Gas reserves replacement ratio – 183 %

tcm 230,3

230,1

299,6

279,6

300

USD bn

241,4

250

208,6

50

200

160,8

40

20

299,2

269,6

60

30

Crude Oil, extracted, mm tons

АВС1(1)

2014 70

Gas Condensate, extracted, mm tons

28,0

25,3

78 18,5

28,9 27,7

29,1 27,8

92,921

20,8

29,9

27,9 20,8

29,8 28,4 20,8

33,6

33,1 29,2

21,3

29,9

33,1

35,1 30,6

31,7

32,9

22,8

22,5

21,9

35,1

23,4

35,6

33,2

36.1

150

23,3 100

50

10 0

0 2003

2004

2005

GAZPROM GROUP GAS RESERVES (ABC1)

1 2

2006

2007

AUDITED АВС1 RESERVES

2008

2009

2010

PROVED + PROBABLE RESERVES (PRMS)

2011

2012

2013

2014

PRESENT VALUE (INCL. LIQUID HYDROCARBONS, SULFUR AND HELIUM)

ABC1 reserves - explored reserves according to Russian standards of classification. Explored gas reserves (categories ABC1) are considered fully recoverable. For oil and gas condensate reserves a special index of extraction is used. This index is calculated taking into account geological and technical factors. C2 reserves belong to the estimated category and serve as a basis for setting up exploration work at a specific field.


21

PRODUCTION STRATEGY Gazprom main production regions

Yamal

NadymPur-Taz

Krasnoyarsk gas production center

Sakhalin gas production center

Yakutsk gas production center Irkutsk gas production center

Gazprom production 2003-2015 900

600

183%

bcm

552.4

540.2

200 180

YAMAL (BOVANENKOVSKOYE)

160

ZAPOLYARNOYE FIELD

140

549.7 513.2

461.5

300

%

120

444.0

79%

100

YAMBURGSKOYE FIELD

80

URENGOYSKOYE FIELD - CENOMANIAN

60 40

0 2003

2004

2005

2006


2007

2008

2009

2010

2011

2012

2013

2014F

2015F

MEDVEZHYE FIELD

OTHER FIELDS OF NADYM-PUR-TAZ REGION

20

OTHER REGIONS

0

GAS RESERVE REPLACEMENT RATIO (RIGHT AXIS)

22

YAMAL MEGAPROJECT Bovanenkovskoye field (production forecast) bcm

40

20

KARA SEA

Rusanovskoye

0

Leningradskoye Malyginskoye Taslyskoye Severo-Tambeyskoye Syadorskoye Zapadno-Tambeyskoye Kharasaveyskoye Yuzhno-Tambeyskoye

2012 GYDAN BAY

Arcticheskoye Teta-Yakinskoye YAMAL PENINSULA Antipayutinskoye Tchugoriakhinskoye Semakovskoye Sredneyamalskoye SeveroNurminskoye Kamenomysskoye Khambateyskoye TAZ BAY Parusovoye Kamennomysskoye Obskoye more Novoportovskoye

Operating gas pipelines Projected gas pipelines and gas pipelines under construction Continental fields

2015F

С1+С2 Reserves

8.5 tcm of gas

203.3 mn t of condensate

Peak annual production

217 bcm of gas

4 mn t of stable condensate

Tambeyskoye industrial zone

Comprehensive YAMBURG gas processing OB BAYSevero-Urengoyskoye unit TAZOVSKIY Wells, well clusters Shell fields

С1+С2 Reserves

3.9 tcm of gas



65 bcm of gas

2.8 mn t of stable condensate

Combined CAPEX for Yamal Program development 2015 F

2016 F

RR 118.6 bn

RR 174.6 bn


2014 Plan

Bovanenkovskoye industrial zone

VerhneKruzenshternovskoye TiuteyskoyeZapadnoVostochno- Seykhinskoye Bovanenkovskoye Bovanenkovskoye Nerstinskoye Neytinskoye

Baidarata Bay

2013

Yuzhnaya industrial zone С1+С2 Reserves

1.4 tcm of gas



30 bcm of gas


23

EASTERN GAS PROGRAM Kirinskoye field (production forecast) bcm/year 1

0,5

0 2013 NORTH OF THE TYUMEN REGION

Udachniy

Surgut

KRASNOYARSK CENTER

KAMCHATS KCENTER Petropavlovs kKamchatsky

Yakutsk Mirniy

Oha

SAKHALIN CENTER

YAKUTSK KomsomolskCENTER Uzhno-Sakhalinsk na-Amyre Tinda Tomsk IRKUTSK Skovorodino CS Bogandinskaya Boguchani Khabarovsk CENTER Sovgava Proskokovo Krasnoyarsk Chelabinsk Kansk n Chita Achinsk Omsk Blagoveshensk Taishet Novoisbirsk Kemerovo Balagansk Abakan Barnaul Daqing Sayansk Irkutsk Zabaykalsk Ulan-Ude Biysk Novokyznetsk KAZAKHSTAN Gorno-Altaisk Tyumen

ULAN-BATOR

Shenyang

MONGOLIA

Gas production center Operating LNG plants LNG plants under construction in Vladivostok Projected gas processing plants CHINA Pipelines under construction Lanzhou Operating gas pipeline

TOKYO

NORTH KOREA SOUTH PYONGYANG KOREA

BEIJING Xian

JAPAN Osaka

2015F

Sakhalin gas production center С1+С2 Reserves

799 bcm of gas



21.5 bcm of gas


Yakutsk gas production center - Chayandinskoye field С1+С2 Reserves

1.4 tcm of gas



25 bcm of gas


Busan Kitakyusyu Xinyang

Shanghai

Combined CAPEX for Eastern Program development 2015F

2016 F

RR 57.4 bn

RR 279.5 bn


2014 Plan

Irkutsk gas production center - Kovyktinskoye field С1+С2 Reserves

2.5 tcm of gas



35.3 bcm of gas


Krasnoyarsk gas production center - Sobinskoye field С1+С2 Reserves

154.4 bcm of gas



n/a

n/a

24

GAS CONDENSATE – PREMIUM PRODUCT Gas condensate production capacity mn tonnes

Yamburg 4.7

Novy Urengoy

5.5

Yuzhno-Sakhalinsk Orenburg

Astrakhan

0.2

Tomsk 0.3

0.1 3.7

Gas condensate production1 20 18

mn tonnes

16 14 12 10

11

12

13

2010

2011

2012

15

15

15

16

17

2013

2014

2015Plan

2016F

2017F

8

Calculations may diverge due to rounding 1 Management estimates; excluding associate companies’ production


25

EXPORT ALEXANDER MEDVEDEV DEPUTY CHAIRMAN OF GAZPROM MANAGEMENT COMMITTEE


26

EUROPEAN NATURAL GAS MARKET DYNAMICS Balance of European Gas Consumption, bcm1 700

600

577.3

564.2

500 400

228.5

231.6

593.1

260.7

587.4

262.6

599.8

585.9

274.0

274.6

565.2

258.2

602.0

290.3

557.3

546.8

538.2

266.7

254.2

255.4

478.4

214.3

300 200

335.8

345.6

332.4

324.8

311.9

325.2

307.3

311.7

290.6

292.6

282.8

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

100 0 2003

INDIGENOUS PRODUCTION 1 GCV

IMPORTS (+BALANCE OF STORAGE)

30.0%

SOURCES: IEA, EUROSTAT , GAZPROM EXPORT ESTIMATES

Demand for Gas Dropped Due to

30.6%

25.4%

MILD WEATHER

2012

2013

2014E

CONSUMPTION

= 8850 KCAL PER MCM, T = 20°C

Gazprom’s Share is Stable

264.1

2014E


COMPETITION FROM RENEWABLES AND COAL



Weather index (HDD + CDD) for Q1-Q3 2014 in Europe is 13% lower vs. average



Power generation makes 20% in the European gas mix. In Q1-Q3 2014 it decreased by 14%

27

RELIABLE GAS DELIVERIES TO EUROPE Near 50 years of impeccable operating track record1 180

bcm

160 140 120 100 80 60 40 20

1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E

0

Despite any crisis Gazprom has always fulfilled its export obligations and will do so in the future 1

Total gas sales in foreign markets excluding FSU


28

GAZPROM SALES TO EUROPEAN AND CIS MARKET Gazprom Gas Deliveries to Europe1 160

bcm 140.6

150.0 138.6

Gazprom Gas Deliveries to CIS and Baltics 161.5

138.8

146.6

60

$402

80

0

$383

$296

$385

$341

120

0 2011

2012

2013

2014E

120 1Q-3Q 2013

114.2

$205 per mcm

$235

2009

2010

2011

$308

2012

$274

$272

2013

2014E

Supply of the EU biggest gas producers

bcm 118.5

56.1

54.6

40

20

Supply of the biggest gas exporters to Europe1 160

64.4

$298

$302

2010

71.1

44.9

per mcm

2009

bcm 68.0

120

40

80

1Q-3Q 2014

bcm

84.1

1Q-3Q 2013

1Q-3Q 2014

82.1

80 80

55.6

45.1 40

40

27.4 23.8 4.6

5.0

4.7

1

30.5

4.3

0 GAZPROM JSC ALGERIA (INCL. LNG)

30.8

18.5 17.9

LYBIA (INCL. LNG)

QATAR

NIGERIA

0 NORWAY

UNITED KINGDOM

NETHERLANDS

European countries with Turkey (excluding CIS and Baltics)


29

MID-TERM PROVISIONS Short-term forecasts of European gas consumption by leading consulting companies (2008 consumption = 100%)



Actual forecasts of the leading consulting companies are significantly below previous estimates because they take into account the sharp drop in demand for gas in 1-3 quarters of 2014



Under current market conditions, 2015-2017 Gazprom export’s estimates for gas deliveries to Europe are 155-160 bcm/year depending on weather

102% 100% 100% 98% 96% 94% 92%

90.8

90%

Actual demand 2006-14E

89.7 89.0

CERA (2013-Nov)

88%

88.1

CERA (2014-Jun) 86%

PIRA (2013-Oct)

84%

PIRA (2014-Oct)

86.0

89.0 87.6

86.5 86.2

84.4 82.8

CEDIGAZ - pessimistic (2013-Jun) 82%

91.6

83.3

CEDIGAZ - base (2013-Jun) IEA (2013-May)

80%

79.8

IEA (2014-May)

78% 2006

2007

2008


2009

2010

2011

2012

2013

2014

2015

2016

30

HYBRID PRICING — CORNERSTONE OF THE EUROPEAN MARKET Natural Gas Prices in Europe Move in Common Trend

Gazprom is a Major Provider of Supply Flexibility to Europe 600

600

Mcm/Day

$/Mcm 550

Seasonal swing in Russian gas daily deliveries doubled from 1998 to 2014

500 500 400

450 400

300

350 200 NBP Day-Ahead 100

TTF Day-Ahead

300 250

BAFA 0

Jan-14

Jan-13

Jan-12

Jan-11

Jan-10

Jan-09

Jan-08

Jan-07

Jan-06

Jan-05

Jan-04

Jan-03

Jan-02

Jan-01

Jan-00

Jan-99

Jan-98

Sep-13

May-14

Jan-13

May-12

Jan-11

Sep-11

Sep-09

May-10

Jan-09

May-08

Jan-07

Sep-07

Sep-05

May-06

Jan-05

May-04

Jan-03

Sep-03

200

 Roughly 2/3 of European gas import is still oil-indexed  Oil price is still the main determinant of wholesale gas prices in Europe  In 2008-2014, correlation between TTF and 6-month moving average of oil price was equal to 0.8 INVESTOR DAY 2015 HONG KONG, SINGAPORE

31

OBJECTIVE OF DECOUPLING OIL AND GAS PRICES NOT ACHIEVABLE IN A FORESEEABLE FUTURE Oil-indexed Prices Still Dominant in European Gas Imports1

Forward Prices Put Henry Hub-based Cost-Plus Pricing in Europe Under Question2 360

2,7% 2,4% 3,5%

$/Mcm

340

30.1% 320 21,5%

42,1%

300

280 2,4% 3,5% 1,8%

9,3%

260 10,8%

69.9% 240

Nov-19

Aug-19

May-19

Feb-19

Aug-18

Nov-18

Feb-18

May-18

Nov-17

Aug-17

May-17

other LNG hub-indexed

Feb-17

Gazprom hub-indexed

Nov-16

Qatar hub-indexed

Aug-16

Norway 2/3 hub-indexed

NBP Forward Curve 200 Feb-16

other LNG oil-indexed

Henry Hub-Based Cost-Plus Prices Range

May-16

Qatar oil-indexed

220

Aug-15

Libya oil-indexed

Nov-15

Algeria oil-indexed

May-15

Norway 1/3 oil-indexed

Feb-15

Gazprom oil- and quasi-oil-indexed

1 In 2

1-3Q 2014; for purposes of this comparison Europe is regarded without Norway The price includes transportation from Henry Hub to Lake Charles, LA, liquefaction, transport, and regasification in the U.K. or Belgium SOURCE: PIRA


32

GAS DEMAND WILL EVENTUALLY RETURN TO EUROPE Bright Spots: New Applications for Gas in Europe In 2035:

Natural Gas in Power Generation Rebound + 60 bcm

+ 50 bcm

207 bcm

139 bcm

234 bcm

2010

2014E

2035F

+ 30 bcm

SOURCES: IHS, GAZPROM EXPORT ESTIMATES

Small-scale CHP

Bunkering

Road transport

By 2035, bright spots could add 140 bcm to total demand or 25% above current levels 

Small-scale CHP offers low-cost energy and tax benefits.



Environmental restrictions provide incentive for broader use of LNG in bunkering and road transport.


Due to: 

aging coal and nuclear plants retirement;



obligatory CCS for new-built coal power stations (UK);



adjustment of the carbon emission allowances market.

33

ENTERING NEW GAS MARKETS Gazprom in Asia-Pacific

WESTERN ROUTE PROJECT

Gazprom is set to build a diversified gas sales portfolio in Asia comprising both pipeline gas and LNG:

EASTERN ROUTE PROJECT

November, 2014 Framework Agreement Signed

 In 2014 we finalized a long term SPA with CNPC for supplying 38 bcma of natural gas to China via Eastern Route pipeline. The deal will allow Gazprom to expand its gas transportation facilities in Eastern Russia and diversify pipeline exports.

Further negotiations and firm agreements

 A broad geography of LNG deliveries to Asia is set to expand with the launch of new LNG projects, making Gazprom one of the most active players in the Asian market.

May, 2014 SPA signed September, 2014 Start of construction works Not earlier than 2018 Estimated commissioning date

Pipeline gas exports to China are planned to reach 68 bcm/year in 2020+

Gazprom LNG Supply Source Structure 2014

2025

1%

14% 18% 46%

Europe

36% 85%

AsiaPacific

Atlantic

LNG from Gazprom projects

LNG deliveries by Gazprom Group


Pipeline gas deliveries by Gazprom

LNG Under Term Contracts

Spot Trading

Gazprom will supply >30 mmt/year of LNG in 2022+ globally 34

GAZPROM LNG BUSINESS

Existing supply sources

Vladivostok LNG 10 mmt/year

Sakhalin-2 10 mmt/year Gazprom Offtake 1 mmt/year

Baltic LNG 10 mmt/year

mmt

Sakhalin-2 T3 5 mmt/year

Total Output 25 mmt/year

Global Contracted LNG Volumes vs. Demand 500

Third-party supply sources

New Gazprom LNG Projects

35

400

300 200

Sakhalin-2 T3

20

Baltic LNG

15

Vladivostok LNG

10

Yamal LNG

0

Highlights

up to

2.9 mmt/year

LNG contracted under LT HOA with Yamal LNG project


mmt

25

0

2014

Gazprom Offtake 2.9 mmt/year

Third party term volumes

5

Colombia FLNG Sakhalin-2

2015

2025 SOURCE: WOOD MACKENZIE

Gazprom Offtake 0.5 mmt/year

30

100

2020

Yamal LNG 16.5 mmt/year

Gazprom LNG Portfolio Development1

Projected LNG Demand

2015

Colombia FLNG 0.5 mmt/year

1

2020

2025

These volumes do not include spot trade

0.5 mmt/year

2 LNG Carriers

LT GAIL SPA

LNG contracted under MT SPA with Colombia LNG project

Newbuilds Velikiy Novgorod and Pskov were delivered to Gazprom

Went “live” (CP lifted)

52 Cargoes were delivered by GM&T to Asia-Pacific and Atlantic markets

35

GAZPROM ACTIVITIES IN THE GLOBAL NGV MARKET Bunkering

On-road transport

LNG consumption as bunker fuel in Baltic and Northern seas in 2015-2025

Gazprom Group companies G4T assets

4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0

mt

GERMANY



Gazprom Germania GmbH (100% owned by Gazprom export): 23 stations

CZECH REPUBLIC



Gazprom Germania GmbH: 6 stations + 3 in the process of construction



Vemex (more than 50% owned by Gazprom Germania GmbH): 5 own stations + supplying 8 third party stations



Gazprom Germania GmbH: 1 LNG station +1 in the process of construction



Cryogas (100% owned by Gazprombank): EPCcontractor in SSLNG segment

SLOVAKIA



Vemex: gas supply to 1 third party station

VIETNAM



JV between Gazprom and Petrovietnam: development of NGV-infrastructure and gas supply to gas-filling stations

POLAND

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 SOURCE: SSPA SWEDEN AB

Pilot project: port of Rostock (more than 13 mln tons of cargo and more than 2 mln passengers per year) Project task: Creating a distribution center in the port of Rostock for LNG supply to marine/land transport and to remote industrial customers

Participants:

Gazprom Group companies’ gas sales for on-road transport 20

mcm/year

15

Poland

10

Czech Republic/Slovakia

5 Germany

0 2012


2013

2014

2015

*

*Forecast

36

FINANCE ANDREY KRUGLOV

DEPUTY CHAIRMAN OF GAZPROM MANAGEMENT COMMITTEE – HEAD OF THE DEPARTMENT


37

GAZPROM POSITION IN GLOBAL ENERGY STRONG FINANCIAL POSITIONS AMONG OIL & GAS MAJORS

Comparative revenues, EBITDA and net income CAGR1 25

20

Top-5 oil and gas majors by EBITDA, 9M2014 LTM 60

% 19.5%

19.2%

USD bln

50

19.4%

40 15 30 10 20

6.9% 4.4%

5

4.4%

55,5

53,9

48,0 39,9

10

0

0 REVENUES

EBITDA GAZPROM

1

56,1

NET INCOME

TOP-10 OIL & GAS MAJORS

Median CAGR of top 10 oil & gas majors by market capitalization as of January 20, 2015


SOURCE: COMPANIES WEBSITES, BLOOMBERG AS OF JANUARY 20, 2015

38

SUSTAINABLE FREE CASH FLOW GENERATION

Gazprom FCF generation1 60

USD bln

51.9

51.2

8,3

7,5

43,6

43,7

2010-2011

2012-2013

50 40

50.8 12,9

34.7 7,7

30

21.7 3,0

20 7.9

10

18,7

8,2 -0,3 2004-2005

-1

37,9

27,0

2006-2007

2008-2009 CASH CAPITAL EXPENDITURES

9m2014 LTM

FREE CASH FLOW

Gazprom self funding2 150% 142%

140% 130%

134%

123%

120%

125%

110% 100%

140%

113%

110%

109%

100%

99%

97%

90%

105%

92%

80%

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

9m2014 LTM

1

Period averages 2 OCF/Cash CAPEX


39

BALANCED CAPEX

60

USD bln

Gas Upstream  Bovanenkovo field  Development of fields related to the Eastern Gas Program and export to China  Gas brownfields development and support

50

GAS UPSTREAM

50

2015 Priorities

55

46

GAS DOWNSTREAM OIL 40

POWER GENERATION OTHER

37

35

32

CASH CAPEX 30

26 23 18

20

Oil  Novoportovskoe, Messoyakha and other greenfields development, brownfields support and refining modernization

12 10

10 7

0 2003

2004

2005

2006

Gas Downstream  Bovanenkovo-Ukhta pipeline  GTS Extension – Southern Corridor  Preliminary works, roll out of the Eastern Gas Program and China export project

2007

2008

2009

2010

2011

2012

2013 2014E 2015F

Power generation  Investments in new capacity



CapEx peak in 2010-2013 is associated with investments in greenfields development, construction and development of gas transportation routes from Yamal and North of Western Siberia, Eastern Gas Program, South Stream project.



CapEx drop in 2014-2015 follows completion of peak phases of key investment projects realized in 2010-2013 and Rouble depreciation.

SOURCE: COMPANY DATA, MANAGEMENT ESTIMATES


40

CAPEX EFFICIENCY

CAPEX: Gazprom vs Russian oil majors1 80

CAPEX/hydrocarbon production: Gazprom vs Russian oil majors1 16

USD bln

70

47,8

43,7

43,6

37,9

37,1

40

32,4 26,2

30

27,0

11,5

12,2 12,5

10,4

10

8,8

8,2

8 6

18,7

13,2

12,9

12 49,2

50

5,2

4

10

2 0

0 2006-2007

2008-2009 GAZPROM

1

14,4

14

60

20

USD/boe

Period averages

2010-2011

2012-2013

9m2014 LTM

RUSSIAN OIL MAJORS AGGREGATE

2006-2007

2008-2009 GAZPROM

2010-2011

2012-2013

9M2014LTM

RUSSIAN OIL MAJORS AGGREGATE

SOURCE: COMPANY DATA

SOURCE: COMPANY DATA



CAPEX of Gazprom is historically comparable to that of the Russian oil industry, including Transneft



The largest portion of Gazprom CAPEX in 2009-2013 was allocated to the development of gas transportation assets



In 2009-2013 Gazprom put onstream Yamal, a new gas production province capable of becoming the main source of gas supplies for the next several decades



Per-barrel volume of Gazprom CAPEX is close to that of Russian oil majors.


41

TOP RUSSIAN BORROWER One of the lowest levels of leverage, 9M2014

Debt maturity profile

**

140 120

21%

26%

38%

33%

33%

31%

36%

39%

13%

14%

100

Debt, USD bln

*

80 60

17%

40 **

20

19%

24%

22%

18%

16%

2011

2012

2013

9M2014

0 0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Net debt / EBITDA LTM *

Rosneft net debt is adjusted for prepayments on long-term oil supply agreements 1h2014 data

LESS THAN 1 YEAR

**

Cost of debt financing 10

A-

%

8

6.2% 5.4%

6 4

2.7%

2 2009

2010

2-5 YEARS

MORE THAN 5 YEARS

Gazprom credit ratings S&P, Fitch

0 2008

1-2 YEARS

2011

2012

WEIGHTED AVERAGE FIXED INTEREST RATE WEIGHTED AVERAGE FLOATING INTEREST RATE WEIGHTED AVERAGE INTEREST RATE

2013

9M2014

Moody's A3

BBB+

Baa1

BBB

Baa2

BBB-

Baa3

BB+

Ba1

BB

Ba2

BB-

Ba3

B+

B1

Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 S&P

MOODY'S

FITCH

INVESTMENT GRADE

SOURCE: BLOOMBERG, 9M2014 COMPANY DATA


42

DIVIDEND PAYOUT

Dividend per share 12

12M dividend yields of major oil & gas companies1 %

RUB / Share 25.0

10

24,1

30

25,5 25.0 25

8,97 8

10%

7.20

17,5 17,5 17,5 17,5

8%

20 6%

5,99

6

7,7%

5,8%

5,8%

5,8%

15

9,1

4

2,54 2,66

0,69

0

4,8%

4,8% 4,1%

11,5

2

5,3%

1,19

4,9

3,85

4%

3,8% 2,9%

10

2,39

1.50

5

2%

0,36

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0

0%

DIVIDEND PAYOUT RATIO, % (RIGHT SCALE)

1 Dividend

yield is defined as approved dividends for the period divided by the share price as of December 31, 2014; Source: Companies data, FactSet


43

NATURAL HEDGING AGAINST ROUBLE VOLATILITY

Hard currency denominated revenues

Hard currency denominated cash OPEX

31%

Gas sales, Europe

16%

8% 14%

50%

75%

Gas production

3%

25%

1% 50%

75%

12% 100%

16% 5%

5% 2%

Electric and heat energy generation and sales

ROUBLES - 56%

EUR 33%

17%

Refining

13%

Debt distribution by currency

5%

Crude oil and gas condensate production

4% 1%

HARD CURRENCY* - 44%

0%

31% 6%

4%

4%

Other cash operating expenses

100%

Hard currency denominated CAPEX Transportation

6% 1%

Staff costs

3%

ROUBLES - 35%

25%

1%

Goods for resale

3%


3%

Repairs

7%

Electricity and heat energy

0%

8%

Materials

Gas sales, Russia

Other revenues

13%

Transit of gas, oil and refined products

11%

Gas transportation

1%

8%

Taxes other than income

7%

Gas sales, FSU (ex. Russia) Crude oil, gas condensate and refined products domestic sales

20%

Purchased gas and oil

Crude oil, gas condensate and refined products export

RUB 14%

4% 2%

Distribution Gas storage

1%


Other

3%

ROUBLES - 79%

0%

25%

50%

75%

Other 1%

100%

Data for revenues, cash OPEX AND CAPEX is adjusted on RUB-denominated amounts linked to hard currency * Hard currency — mainly USD and EUR


USD 52%

SOURCE: COMPANY DATA, MANAGEMENT ESTIMATES

44

SUBSTANTIAL RESILIENCE TO WORSENED ENVIRONMENT HIGHER STABILITY OF GAS PRICES, RUBLE DEVALUATION AND CONSERVATIVE FINANCIAL POLICY ENSURE STRONG FOOTHOLD IN DIFFICULT TIMES

Oil and gas prices in 2008-2010 crisis 160

RUB/USD rates during 2014 & 2008 oil price shocks

%

140

$/bbl

RUB/USD

70

140

120

60

120

100

50

80

40

60

30

40

40

20

20

20

10

100 80 60

0

0 1q08 OIL

1q09

1q10

GAZPROM GAS EUROPE

1q11 NBP

$bln

$/bbl

100 80

120

70

100

60

80

50

40

20

20

10

0

0

EBITDA

2010 NET DEBT


2011

2012

2013

OIL PRICE (RIGHT SCALE)

1q12

1q13

1q14

1q15

RUB/USD RATE

SOURCE: BLOOMBERG

$bln

$/bbl

120 100 80

40

40

0

1q11

Conservative financial policy improves FCF outlook

60

2009

1q10 OIL PRICE

60

2008

1q09

SOURCE: COMPANY DATA, BLOOMBERG

EBITDA and NET DEBT during 2008-2010 crisis 120

0 1q08

60

30

40

20

20 0 2008

2009

2010

CAPEX

2011

FCF

2012

2013

9M14 2015E LTM OIL PRICE (RIGHT SCALE)

45

DIVERSIFICATION OF CAPITAL MARKETS INCREASE OF GAZPROM GDR HOLDERS IN ASIA-PACIFIC

AsiaPasific 4%

AsiaPacific 10%

Other 0%

Northern America 48%

Europe 48%

Potential listing on Hong Kong or other Asian stock exchanges

Other 1%

Europe 43%

Northern America 46%

Gazprom obtains credit rating from an Asian rating agency 

2008

2014

Gazprom GDRs were listed on the Singapore Stock Exchange 

Growth of international investor base



Targeting 24-hour trading of the Company's securities on international platforms

Gazprom’s credit rating may potentially exceed the sovereign credit rating of Russia

Gazprom 2015 Investor Day held in Hong Kong and Singapore 

Special focus on Asian markets during road shows and investor meetings

SOURCE: ANALYTIC SURVEY NASDAQ OMX, T1IR DECEMBER 2014


46

CORPORATE GOVERNANCE Information disclosure

Gazprom shareholding structure 2006 (AS OF 31.12)

2014 (AS OF 30.06)

Transparency of Gazprom's activities is ensured through 36,80%

38,37%

26,23% 13,20%

Over 18 years of audited IFRS reports publication Timely and complete disclosure of information (including on Gazprom's website) as required by applicable laws and regulations

Disclosure of all material information in the English language

38,37%

23,54%

10,74% 0,89%

10,97% 0,89%

RUSSIAN FEDERATION

RUSSIAN FEDERATION

ROSNEFTEGAZ*

ROSNEFTEGAZ*

ROSGAZIFIKATSIYA*

ROSGAZIFIKATSIYA*

HOLDERS OF DEPOSITORY RECEIPTS

HOLDERS OF DEPOSITORY RECEIPTS

OTHER LEGAL ENTITIES AND INDIVIDUALS

OTHER LEGAL ENTITIES AND INDIVIDUALS

Corporate governance improvement Actions taken in 2014

Actions in progress

 Gazprom shares included in the First Level quotation list of Russian Stock Exchanges

 Enhancement of the incentive programme for the members of the Board of Directors

Clearly defined information disclosure processes set by robust internal regulations

 New indicators TSR and ROE (jointly weighing 30%) added to the KPIs for Management

 Creation of a Corporate Secretary function

Equal access of all stakeholders to the disclosed information

 The Corporate Ethics Committee established according to the Gazprom's Code of Corporate Ethics

 Extension of the period up to 38 days for providing information materials for Shareholders Meetings

*


 Improvement of Gazprom's website content  Continued efforts for implementation of ethical business practices within the framework of the Corporate Ethics Committee's activities

Entities controlled by the Russian Government

47

VALUATION COMPARISONS VS PEERS

EV/2013 proved reserves*

EV/EBITDA 9M2014 LTM

25

8 17

16

14

15

5

13

5

5

7

5

4

4

4 8

10

3

3

1

2

4

2

2

2

1

Gazprom’s reserves — prms, other companies — sec Petrobras’ financial statements data is on 1H2014 *** Rosneft’s data is adjusted on prepayment on long-term oil supply agreements Market data as of 28/01/2015

Novatek

Rosneft***

Lukoil

Rosneft

PetroChina

Petrobras**

Total

BP

Shell

Chevron

3

2

3

Rosneft***

Rosneft***

PetroChina

Petrobras**

Total

BP

Shell

Chevron

Exxon

Gazprom

0

7

Novatek

69

6

Lukoil

61

Rosneft

59

6

PetroChina

55

Novatek

25

Lukoil

100

Rosneft

122

150

10

10

Petrobras**

188 192

13

Total

202

200

13 11

BP

229

250

16

Shell

268

18 16 14 12 10 8 6 4 2 0

Chevron

300

Exxon

Rosneft***

Novatek

Lukoil

Rosneft

311

P/E 9M2014 LTM

Exxon

350

PetroChina

Petrobras**

Total

BP

Shell

Chevron

Exxon

Gazprom

EV/2013 production

Gazprom

0

0

50

3

3

5

USD / boe

7 5

6

Gazprom

USD / boe

20

7

7

19

19

*

**


SOURCE: BLOOMBERG, COMPANY DATA

48

VALUE DRIVERS

1

3


Unparalleled Fundamentals

2

Sound Strategy & Strong Market Position



17% of global gas reserves



Natural gas is future of the world energy



72% of Russian gas reserves



Gazprom is a global energy major



14% of global gas production



30% share in the European gas market



73% of Russian gas production





>100% Reserve replacement ratio

Diversification of products and export markets is key to our business continuity

Improving Corporate Governance

4

Conservative Financial Policy



Focus on shareholders value



Impressive profitability



Solid dividend policy



Conservative CAPEX management



Increased level of transparency



Efficient system of OPEX management



Commitment to sustainable development



Strong liquidity ratios

49

CONTACTS FOR INVESTORS

ANDREY BARANOV Deputy Head of Directorate

E-mail: [email protected]

IVAN KHROMUSHIN Head of Division Phone: (007) (495) 719-3143 E-mail: [email protected]


50