2015 ifrs consolidated financial results - … · 26; 124;195 150; 150; 150 68; 103; 124 69; 165;...
TRANSCRIPT
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
2015 IFRS CONSOLIDATED FINANCIAL RESULTS
APRIL 28, 2016
2
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
26; 124;195
Igor Shatalov
First Deputy Head of the Department
3
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
DISCLAIMERS This presentation has been prepared by JSC 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. 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.
4
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
26; 124;195
2015 - 1H 2016 HIGHLIGHTS
Dagong rating agency assigned 'AAA' credit rating to Gazprom and confirmed the rating in April 2016
Gazprom and CNPC signed the Heads of Agreement for pipeline gas supply from Russia to China via the Western route
Feb. 2015
May. 2015
Gazprom, BASF, E.ON, ENGIE, OMV and Shell signed Shareholders Agreement on Nord Stream 2 project Sep. 2015
Gazprom placed € 1 bn Eurobonds
Gas export growth to Europe in 2015 (+8% y-o-y)
Oct. 2015
Mar. 2016
EUR 2 billion loan facility from Bank of China. The largest bilateral loan in Gazprom’s history
Gazprom placed CHF 500 million Eurobonds
Gazprom’s Management Committee proposed RUB 7.40 per share dividend for 2015
Government decree on dividends
Apr. 2016
Dec. 2015
5
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
6,073
1,875
787
2,031
390
2,083
Total net sales Adj. EBITDA Net profit Operating CF Free CF Net debt1 2 3 4
1 EBITDA adjusted by changes in impairment provisions 2 Profit for the period attributed to owners of PJSC Gazprom 3 Free cash flow is calculated as Net cash provided by operating activities less Capital expenditures 4 Compared to Net debt as of December 31, 2014
SUMMARY OF FINANCIAL RESULTS
+9%
+395%
+6% +26% (4%)
(40%)
2014 vs 2015
RR bn
6
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
+1%
(1%) +8% 444.9 419.5
123.9 129.0
0
200
400
600
2014 2015 4q14 4q15
Natural gas production Crude oil production Gas condensate production
Including Russian generating companies: Mosenergo, OGK-2, TGK-1, MIPC
Calculations may diverge due to rounding.
HYDROCARBON PRODUCTION, ELECTRICITY AND HEAT
GENERATION
bcm mln ton mln ton
(6%)
+4%
14.5 15.3
3.8 4.1
0
10
20
30
2014 2015 4q14 4q15
43.5 44.0
11.1 11.0
0
20
40
60
2014 2015 4q14 4q15
Electricity generation Heat generation
bn kWh mln Gcal
155.4 147.9
45.1 41.7
0
30
60
90
120
150
180
2014 2015 4q14 4q15
125.2 117.1
45.8 40.4
0
30
60
90
120
2014 2015 4q14 4q15
+6%
(5%)
(7%)
(7%)
(12%)
7
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
26; 124;195
821 806
268 267
0
400
800
1200
1600
2000
2014 2015 4q14 4q15
NET SALES TO RUSSIA
(2%)
(0%)
159 184
37 59
349
246
352
229
0
100
200
300
400
0
100
200
300
2014 2015 4q14 4q15
VOLUMES AVERAGE PRICE IN EUROPE & OC
GAS SALES
234 221
76 71
3,507 3,641
3,523 3,779
0
1000
2000
3000
4000
0
100
200
300
400
2014 2015 4q14 4q15
VOLUMES AVERAGE PRICE IN RUSSIA
RR/mcm bcm
RR bn
Calculations may diverge due to rounding. 1 Net of value added tax (VAT) 2 OC - Other countries: include LNG sales 3 VAT is not charged on sales 4 Net of custom duties and excise tax
1,752
2,166
525 735
0
400
800
1200
1600
2000
2014 2015 4q14 4q15
NET SALES TO EUROPE & OC
RR bn
bcm
48 40
11 13
262
194 221
182
0
100
200
300
0
20
40
60
80
100
2014 2015 4q14 4q15
VOLUMES AVERAGE PRICE IN FSU
412 430
107 138
0
400
800
1200
1600
2000
2014 2015 4q14 4q15
NET SALES TO FSU
bcm USD/mcm USD/mcm
1
Russia Europe & OC2 FSU
3,4 3,4
RR bn +24%
+40% +4%
+29%
8
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
26; 124;195
125%
152%
124%
185%
157%
85%
108%
134%
80%
100%
120%
140%
160%
180%
200%
2013 2014 2015 4q14 1q15 2q15 3q15 4q15
SUSTAINABLE FREE CASH FLOW GENERATION
Free Cash Flow1
Gazprom self funding2
1 Free Cash Flow = Net Cash from operating activities – Cash CAPEX 2 Net Cash from operating activities /Cash CAPEX
USD bn
16.2 21.2
28.7 25.0 34.3
52.8 43.4 43.9
33.2 27.1
3.8 2.2
12.1
3.2
13.7
2.9
4.0 10.8
17.2
6.4
20.0 23.4
40.9
28.2
48.1
55.7
47.4
54.7 50.5
33.5
0
20
40
60
80
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Cash CAPEX Free Cash Flow23.6 Operating Cash Flow
Conservative financial policy: 10 years of positive FCF
9
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
26; 124;195
0
500
1000
1500
2000
2500
3000
2013 2014 2015
TRANSPORT PRODUCTION OF NATURAL GAS PRODUCTION OF CRUDE OIL AND GAS CONDENSATE
REFINING ELECTRIC AND HEAT ENERGY OTHER CAPEX
CASH CAPEX
1,475 1,423
1,693
0
10
20
30
40
50
60
70
80
2013 2014 2015
46.4
37.5
27.9
Gazprom Group’s CapEx1
RR bn
1 CapEx volumes and breakdown as provided in Management Report
CAPITAL EXPENDITURES
+19% (4%)
(19%)
(26%)
USD bn
10
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
26; 124;195
0.36
2.39
3.85
8.97
5.99 7.2 7.2
1% 7% 9% 16%
12% 15%
107%
5%
9%
25% 24%
26% 27%
90%
0%
20%
40%
60%
80%
100%
120%
0
2
4
6
8
10
12
14
2008 2009 2010 2011 2012 2013 2014
DIVIDENDS AS % OF IFRS NET INCOME RAS BASED DIVIDEND PAYOUT RATIO
RUB/ Share
DIVIDEND PAYOUT
Dividend
per share
11
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
26; 124;195
1,075 1,113 1,651
2,083 426
689
1,038
1,359
0.7
0.5 0.6
0.9
0.0
0.3
0.6
0.9
1.2
0
1000
2000
3000
4000
5000
2012 2013 2014 2015
NET DEBT
CASH&CASH EQUIVALENTS NET DEBT/ADJ.EBITDA
RUB bn x
KEY DEBT METRICS
Debt maturity profile2
Cost of debt financing Gazprom credit ratings
22% 18% 17% 19%
19% 13% 15% 14%
33%
36% 36% 42%
26% 33% 32%
25%
2012 2013 2014 2015
LESS THAN 1 YEAR 1-2 YEARS 2-5 YEARS MORE THAN 5 YEARS
6.3%
3.8%
5.6%
0
2
4
6
8
10
2008 2009 2010 2011 2012 2013 2014 2015
WEIGHTED AVERAGE FIXED INTEREST RATE
WEIGHTED AVERAGE FLOATING INTEREST RATE
WEIGHTED AVERAGE INTEREST RATE
%
SOURCE: BLOOMBERG, COMPANY DATA
Moody's
A- A3 BBB+ Baa1 BBB Baa2 BBB- Baa3
BB+ Ba1 BB Ba2 BB- Ba3
B+ B1
Dagong,
S&P, Fitch
A A2 A+ A1
AA Aa AAA Aaa
Jan
2004
Jan
2005
Jan
2006
Jan
2007
Jan
2008
Jan
2009
Jan
2010
Jan
2011
Jan
2012
Jan
2013
Jan
2014
Jan
2015
Jan
2016
S&P MOODY'S FITCH
DAGONG INVESTMENT GRADE
Total and Net Debt
1 Calculated using dollar values of Net debt and EBITDA 2 Excluding promissory notes
1
12
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
26; 124;195
Strong foothold in current market environment
INVESTMENT CASE
LOW COST
BASE
POSITIVE EFFECT
FROM WEAK ROUBLE
LOW DEBT
BURDEN
BALANCED
DIVIDEND POLICY
CAPEX OPTIMIZATION
& PROJECT
PRIORITIZATION
13
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
ADDITIONAL INFORMATION
14
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
14
RUSSIAN NATURAL GAS BALANCE
Bcm 2014 2015 4Q2014 4Q2015
Natural gas resources 714.22 694.45 194.20 199.20
Domestic gas production 642.07 634.90 177.03 185.68
Other sources including Central Asian and Azerbaijani gas 29.33 25.84 6.93 6.21
Gas withdrawn from underground storage in Russia, Latvia and Europe 36.64 29.62 9.03 6.32
Decrease in the amount of gas within the gas transportation system 6.19 4.10 1.22 0.99
Natural gas distribution 714.22 694.45 194.20 199.20
Domestic consumption 458.38 443.67 140.36 134.75
including needs of the gas transportation system
and underground storages 33.19 32.28 9.39 11.26
Gas pumped into underground storages 41.59 31.54 4.93 2.73
Gas for LNG production 14.45 14.54 3.73 3.91
Foreign supplies 151.55 163.00 33.94 44.48
including Baltic states 3.92 3.56 1.35 1.15
FSU supplies 41.82 37.58 9.39 12.28
Increase in the amount of gas within the gas transportation system 6.44 4.12 1.85 1.05
Source: Company Operating Data
15
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
Do not put anything
below this line 2015 IFRS CONSOLIDATED FINANCIAL RESULTS
26; 124;195
CONTACTS FOR INVESTORS AND ANALYSTS
IVAN KHROMUSHIN Head of Division
Phone: (007) (495) 719-3143
E-mail: [email protected]
ANTON DEMCHENKO Deputy Head of Division
Phone: (007) (495) 719-4298
E-mail: [email protected]