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GAZPROM INVESTOR DAY
FEBRUARY 2015
HONG KONG, SINGAPORE
GAS BUSINESS
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AGENDA PRESENTATION SPEAKERS
Strategy
Dmitry Lyugai
Member of Gazprom Management Committee
Head of the Department
Export
Alexander Medvedev
Deputy Chairman of Gazprom Management
Committee
Oil Business
Alexei Yankevich
Member of the Management Board of Gazprom Neft
Deputy CEO for Economics and Finance
of Gazprom Neft
Project Finance
Oleg Nagovitsyn
General Director of Gazprom Investproject
Upstream
Vsevolod Cherepanov
Member of Gazprom Management Committee
Head of the Department
Finance
Andrey Kruglov
Deputy Chairman of Gazprom Management Committee
Head of the Department
Power Generation
Denis Fedorov
Head of Gazprom Directorate
General Director of Gazprom Energoholding
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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.
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STRATEGY 5
UPSTREAM 19
FINANCE
26 EXPORT
37
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STRATEGY DMITRY LYUGAI MEMBER OF GAZPROM MANAGEMENT COMMITTEE – HEAD OF THE DEPARTMENT
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GAZPROM AT A GLANCE SHORT OVERVIEW
Gazprom is a Russian global
energy company
Its major business lines are:
Geological exploration
Production
Transportation and Storage
Processing and sales of gas, gas
condensate and oil
Sales of gas as a vehicle fuel
Generation and marketing of heat and
electric power
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.
History
1906 First commercial gas production from Russian gas field –
“Dagestanskye Ogni” (Derbent city)
1943 First Russian trunk gas pipeline “Buguruslan-Kuybyshev (Samara)”
1948 Natural gas production department set up at the Ministry of oil industry
1965 USSR Gas Industry Ministry established
1973 First Russian gas delivered to Europe
1989 USSR Gas Industry Ministry restructured into Gazprom State Gas Concern
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”)
2007-2009 Gazprom entered into the energy business
(consolidated under “Gazprom Energoholding”)
Achievements for 22 years
12 tcm
GAS PRODUCED
OIL AND GAS CONDENSATE PRODUCED
NEW GAS RESERVES DISCOVERED
546 mm tons
8.6 tcm
Gazprom revenue structure1
33 THOUSAND KM OF NEW PIPELINES BUILT
1 According to International Financial Reporting Standards (IFRS) SOURCE: GAZPROM DATA
100%
1993 2013
69%
24%
7%
GAS
OIL
POWER
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GAZPROM IN FIGURES
17%
Gas reserves
72%
#1 WORLD #1 RUSSIA
Gazprom gas reserves
(A+B+C1) – 36 tcm,
incl. onshore – 29 tcm,
offshore – 7 tcm
Gas production
Gazprom Group gas
production – 487 bcm
Number of active gas
production wells – 7,263
Number of producing
fields – 131
14% 73%
#1 WORLD #1 RUSSIA
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 Processing volumes – 32 bcm
Gas processing capacity – 54 bcm
Oil and gas condensate refining – 66 mm tons
SOURCE: GAZPROM ANNUAL REPORT 2013, GAZPROM IN FIGURES 2009-2013 FACTBOOK
1 Underground gas storage facility 2 Gas transportation system
Oil and gas condensate production
9%
RUSSIA
Gazprom Group oil and gas
condensate
production — 69 mm tons
Number of active oil production
wells — 7,246
Electric power and heat generation
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 )
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GAZPROM GROUP’S MISSION AND STRATEGIC GOAL
RELIABLE, EFFICIENT AND BALANCED SUPPLY OF NATURAL GAS, OTHER ENERGY
RESOURCES AND REFINED PRODUCTS TO CONSUMERS MISSION
ESTABLISH ITSELF AS A LEADER AMONG GLOBAL ENERGY COMPANIES BY DIVERSIFYING
SALES MARKETS, ENSURING RELIABLE SUPPLIES, IMPROVING PERFORMANCE AND
UTILIZING R&D POTENTIAL
STRATEGIC GOAL
BUSINESS TYPE
EXPLORATION AND PRODUCTION MARKETING AND SALES TRANSPORTATION AND STORAGE PROCESSING AND ENERGY PRODUCTION
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WORLD GAS DEMAND
Share of natural gas in world total primary
energy consumption
Natural gas consumption
by region
24%
33%
30%
4%
9% 23%
28% 26%
6%
17%
GAS OIL COAL NUCLEAR RENEWABLES
2030 FORECAST
2013
26%
5%
14%
19%
13%
3%
20%
NORTH AMERICA
LATIN AMERICA
OECD EUROPE
OTHER EUROPE AND EURASIA
MIDDLE EAST
AFRICA
ASIA OCEANIA
24%
5%
12%
16%
13%
5%
25%
2013
2030 FORECAST
4.8 tcm
3.6 tcm
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GAZPROM ON THE RUSSIAN DOMESTIC MARKET
Gas deliveries to Russian consumers2 Structure of Gazprom’s gas sales revenue, 20131
Total final consumption
20%
52%
14%
14%
GAS
OIL
COAL
OTHER
20%
52%
15%
13%
GAS
OIL
COAL
OTHER
GAS SHARE STABILIZATION
IN FUEL AND ENERGY BALANCE
SOURCE: GAZPROM IN FIGURES 2009-2013 FACTBOOK, GAZPROM DATA
2014 2030
ENERGY STRATEGY OF RUSSIA (PROJECT)
100
200
300
400
500
2015 2020 2025 2030
bcm
360
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.
2 incl. gas purchases from other companies
1 not including custom duties
265 250 228
723 740 774
0
1 000
2 000
3 000
4 000
0
300
600
900
2011 2012 2013
RR
/m
cm
bcm
; R
R b
n
GAZPROM GROUP’S SALES IN RUSSIA (BCM) REVENUE (RR BN) DOMESTIC AVERAGE PRICE (RR/MCM)
58%
15%
27%
EUROPE
FSU COUNTRIES
RUSSIA
2,725 2,964
3,394
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0
100
200
300
2010 2015 2020 2025 2030
bcm
EUROPE: GAZPROM’S TRADITIONAL MARKET
Gazprom’s pipeline gas deliveries to Europe Forecast — gas production vs. consumption in Europe
Gazprom’s share in the European market Shale gas in Europe — an expected setback
0
100
200
300
400
500
600
700
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
bcm
~400
CONSUMPTION
PRODUCTION
Recent progress and current state of development
Estimated shale gas technically recoverable resources – 16.9 tcm
SOURCE: WOOD MACKENZIE, EIA, PLATTS, ERI RAS, IEA, IHS, RYSTAD ENERGY, BP JSC "GAZPROM" OTHER SOURCES OF GAS
30% 30%
2013 2030
■ 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
■ 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
MAX
MIN
Poland 4.2 France
3.9 Ukraine
3.6
Rest of
Europe
3.7
Romania
1.4
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Yubileynoye Urengoiskoye Pestsovoye
Bovanenkovskoye
Kharasaveiskoye
Severo-Kamennomysskoye
Kamennomysskoye-sea
North of West Siberia and Yamal peninsula Fields
Kirinskoye
«Sakhalin-3»
Kirinskiy licensed section
RUSSIA
Pre-Yamal shelf Pechorskoye Sea shelf
Kovyktinskoye
Chayandinskoye
Eastern Siberia and Far East Fields
Gas field Continental shelf
GAZPROM: UPSTREAM DEVELOPMENT
SOURCE: GAZPROM IN FIGURES 2009-2013 FACTBOOK, GAZPROM DATA
Key Gazprom gas greenfields 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
Chayandinskoye 25
Kovyktinskoye 35
Prospective sources of Gazprom’s gas production
0
200
400
600
800
2013 2020
min
2030
min
2020
max
2030
max
bcm
OTHER NEW FIELDS
EAST SIBERIA AND FAR EAST FIELDS
YAMAL MEGAPROJECT
JSC GAZPROM NEFT
OPERATING FIELDS
1 whole number rounding
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KEY CURRENT AND PROSPECTIVE
RUSSIAN NATURAL GAS EXPORT DESTINATIONS
Altai project
Power of Siberia
Sakhalin-Khabarovsk-Vladivostok
- current Russian natural gas export destinations
- prospective and ongoing Russian natural gas export projects
- operating LNG projects
- prospective LNG projects
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GAZPROM IN LNG MARKET
0
200
400
600
800
20
05
20
10
20
15
20
20
20
25
20
30
Mln
t/
yea
r
LNG PLANTS UNDER CONSTRUCTION
OPERATING LNG PLANTS
OPTIMISTIC CONSUMPTION FORECAST
PESSIMISTIC CONSUMPTION FORECAST
World LNG demand and production forecast
SOURCE: WOOD MACKENZIE
RUSSIA
OPERATING LNG PLANT
PROSPECTIVE LNG PLANT
Baltic LNG
Vladivostok LNG
LNG EXPORTERS
LNG IMPORTERS
LNG EXPORTERS/IMPORTERS
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
Sakhalin-2
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GAS INFRASTRUCTURE DEVELOPMENT
IN EASTERN SIBERIA AND FAR EAST REGIONS
Power of Siberia trunk pipeline
Transportation site Date when put into operation
(not earlier) Length, km
Trunk pipeline “Power of Siberia” 2018 4,000
CHINA
Production sites Date when put into operation
(not earlier)
Plateau production, bcm/year
Chayandinskoye 2018 25
Kovyktinskoye (incl. Chikanskoye field) 2022 35
Fields
Pipelines: existing under construction possible designed
Operating trains of LNG plants
Prospective trains of LNG plants
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RUSSIAN — CHINA GAS DEAL MAIN CHARACTERISTICS
SOURCE: * WOODMACKENZIE, IHS PFC ENERGY
BCM per YEAR
CONTRACT VOLUME
CHINA GAS CONSUMPTION 10 YEARS AGO
10% OF CHINESE GAS MARKET AFTER RAMPING UP
CONTRACT LIFETIME
YEARS
PERIOD COMPARABLE WITH TRUNK GAS
PIPELINE LIFE TIME
CONTRACT VALUE
$ BLN
TOTAL AMOUNT OF GAZPROM INVESTMENT
PROGRAM FOR LAST 10 YEARS
INVESTMENT
$ BLN
CAPITAL INVESTMENT COMPARABLE WITH
AUSTRALIAN GORGON PROJECT ($54 BLN*),
RUSSIAN PROJECT VOLUME 75% HIGHER
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RUSSIAN — CHINA GAS DEAL
BOTTOM OF THE ICEBERG
GAS DEAL
For Gazprom
Market diversification
Russian pipeline natural gas popularization in the Asia Pacific
Region market
Sales of Russian pipeline natural gas increase
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
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 CNPC
Favorable pricing versus LNG
Pipeline supply sources diversification
Natural gas supply sources diversification (from LNG)
Strengthening the company’s position in the gas supply market
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
RELIABILITY OF SUPPLIES DUE TO LACK OF TRANSIT RISK
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FORECAST OF CAPITAL INVESTMENTS
Structure of CAPEX by gas business segment
EXPLORATION
PRODUCTION
TRANSPORT
(incl. UGS**)
PROCESSING, LNG
46 %
38 %
12 %
4 %
approx. 24 bln USD*
average annual 2015-2030
* 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
28%
19%
53%
YAMAL MEGAPROJECT
EASTERN SIBERIA AND THE FAR EAST*
OTHER PROJECTS*
* exploration; existing and new
production and transport projects,
processing and LNG projects
INNOVATIVE
DEVELOPMENT
PROGRAM TO
2020
GAZPROM'S
INVESTMENT
PROGRAM
GAZPROM’S
DEVELOPMENT
PROGRAM
OVER A TEN-
YEAR PERIOD
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UPSTREAM VSEVOLOD CHEREPANOV MEMBER OF GAZPROM MANAGEMENT COMMITTEE – HEAD OF THE DEPARTMENT
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2014 GEOLOGICAL EXPLORATION RESULTS
Russian gas reserves Gazprom’s huge hydrocarbon reserves and longest reserve life
Global gas reserves
0
20
40
60
80
100
120
140123
(37 yrs)
96
(17 yrs)
(12 yrs)
89
bboe
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
Gazprom
17 %
Gazprom72%
4%
Unallocated
fund
Independent
Producers
24%
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SUMMARY GAS RESERVES INFORMATION
1 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. 2 C2 reserves belong to the estimated category and serve as a basis for setting up exploration work at a specific field.
Crude Oil, extracted, mm tons
АВС1(1) С2
(2)
1,937.2 1,594.4
Natural Gas, tcm
АВС1(1) С2
(2)
36.1 10.1
Gas Condensate, extracted, mm tons
АВС1(1) С2
(2)
1,444.4 679.6
Discovery of 1 new field and 8 new deposits within previously discovered fields
Gas reserves replacement ratio – 183 % 2014
28,0 28,9 29,1 29,9 29,8 33,1 33,6 33,1
35,1 35,1 35,6 36.1
25,3 27,7 27,8 27,9 28,4 29,2 29,9 30,6 31,7 32,9 33,2
18,5 21 20,8 20,8 20,8 21,3 21,9 22,5 22,8 23,4 23,3
78 92,9
160,8
208,6
230,3 230,1 241,4
269,6 299,2
279,6 299,6
0
50
100
150
200
250
300
0
10
20
30
40
50
60
70
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GAZPROM GROUP GAS RESERVES (ABC1) AUDITED АВС1 RESERVES PROVED + PROBABLE RESERVES (PRMS) PRESENT VALUE (INCL. LIQUID HYDROCARBONS, SULFUR AND HELIUM)
tcm USD bn
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PRODUCTION STRATEGY
Gazprom main production regions
79%
183%
0
20
40
60
80
100
120
140
160
180
200
0
300
600
900
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F 2015F
YAMAL (BOVANENKOVSKOYE)
ZAPOLYARNOYE FIELD
MEDVEZHYE FIELD
YAMBURGSKOYE FIELD
URENGOYSKOYE FIELD - CENOMANIAN
OTHER FIELDS OF NADYM-PUR-TAZ REGION
OTHER REGIONS
GAS RESERVE REPLACEMENT RATIO (RIGHT AXIS)
540.2
444.0
549.7
461.5
552.4
513.2
bcm
Gazprom production 2003-2015
Sakhalin
gas
production
center
Yakutsk
gas
production
center
Irkutsk gas
production
center
Yamal
Nadym-
Pur-Taz
%
Krasno-
yarsk gas
production
center
23
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
YAMAL MEGAPROJECT
KARA SEA Rusanovskoye
Leningradskoye Malyginskoye
Taslyskoye
Syadorskoye
Kharasaveyskoye
Kruzenshternovskoye
Bovanenkovskoye
Verhne-
Tiuteyskoye
Vostochno-
Bovanenkovskoye Nerstinskoye
Neytinskoye
Arcticheskoye
Baidarata
Bay
YAMAL PENINSULA
Sredneyamalskoye
Nurminskoye
Khambateyskoye
Novoportovskoye
Kamennomysskoye
more Obskoye
Parusovoye
OB BAY
TAZ BAY
Semakovskoye
Teta-Yakinskoye
Antipayutinskoye
Severo-Urengoyskoye YAMBURG
TAZOVSKIY
Tchugoriakhinskoye Severo-
Kamenomysskoye
GYDAN BAY
Severo-Tambeyskoye
Zapadno-Tambeyskoye
Yuzhno-Tambeyskoye
Zapadno-
Seykhinskoye
Operating gas pipelines
Projected gas pipelines and gas pipelines under construction Continental fields Shell fields
Wells, well clusters
Comprehensive gas processing unit
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
С1+С2 Reserves 3.9 tcm of gas 178.0 mn t of condensate
Peak annual production 65 bcm of gas 2.8 mn t of stable condensate
Yuzhnaya industrial zone
С1+С2 Reserves 1.4 tcm of gas 60.0 mn t of condensate
Peak annual production 30 bcm of gas 0.8 mn t of condensate
Bovanenkovskoye industrial zone
Combined CAPEX for Yamal Program development
2015 F 2016 F
RR 118.6 bn RR 174.6 bn
Bovanenkovskoye field (production forecast)
0
20
40
2012 2013 2014 Plan 2015F
bcm
24
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
EASTERN GAS PROGRAM
SAKHALIN
CENTER
IRKUTSK
CENTER
KRASNOYARSK
CENTER
NORTH OF
THE
TYUMEN
REGION
MONGOLIA
CHINA
KAZAKHSTAN
JAPAN NORTH
KOREA SOUTH
KOREA
BEIJING
PYONGYANG
TOKYO ULAN-BATOR
Operating LNG plants
Pipelines under construction
Operating gas pipeline
LNG plants under construction in Vladivostok
Projected gas processing plants
Gas production center
Blagoveshensk
Khabarovsk
Oha
Uzhno-Sakhalinsk
YAKUTSK
CENTER
Tomsk CS Bogandinskaya
Tyumen
Chelabinsk
Surgut
Omsk
Proskokovo
Barnaul Novokyznetsk
Taishet
Boguchani
Irkutsk
Ulan-Ude
Skovorodino
Tinda
Zabaykalsk
Chita
Shanghai Xinyang Xian
Lanzhou
Kitakyusyu Busan
Osaka
Shenyang
Daqing
Sovgava
n
Komsomolsk-
na-Amyre
KAMCHATS
KCENTER
Petropavlovs
k-
Kamchatsky
Udachniy Yakutsk
Novoisbirsk Kemerovo Achinsk
Krasnoyarsk
Abakan
Kansk
Sayansk
Mirniy
Biysk Gorno-Altaisk
Balagansk
Yakutsk gas production center - Chayandinskoye field
С1+С2 Reserves 1.4 tcm of gas 22.1 mn t of condensate
Peak annual production 25 bcm of gas 0.4 mn t of stable condensate
С1+С2 Reserves 799 bcm of gas 116.4 mn t of condensate
Peak annual production 21.5 bcm of gas 5.05 mn t of stable condensate
Krasnoyarsk gas production center - Sobinskoye field
С1+С2 Reserves 154.4 bcm of gas 8.3 mn t of condensate
Peak annual production n/a n/a
С1+С2 Reserves 2.5 tcm of gas 85.7 mn t of condensate
Peak annual production 35.3 bcm of gas 1.9 mn t of stable condensate
Irkutsk gas production center - Kovyktinskoye field
Sakhalin gas production center
Combined CAPEX for Eastern Program development
2015F 2016 F
RR 57.4 bn RR 279.5 bn
Kirinskoye field (production forecast)
0
0,5
1
2013 2014 Plan 2015F
bcm/year
25
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
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below this line INVESTOR DAY 2015
HONG KONG, SINGAPORE
GAS CONDENSATE – PREMIUM PRODUCT
Gas condensate production capacity
Astrakhan
Novy Urengoy
Yamburg
Tomsk Orenburg
4.7
5.5
3.7
0.3 0.1
0.2
Yuzhno-Sakhalinsk
mn tonnes
Gas condensate production1
Calculations may diverge due to rounding 1 Management estimates; excluding associate companies’ production
11 12 13 15 15 15
16 17
8
10
12
14
16
18
20
2010 2011 2012 2013 2014 2015Plan 2016F 2017F
mn tonnes
26
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
EXPORT ALEXANDER MEDVEDEV DEPUTY CHAIRMAN OF GAZPROM MANAGEMENT COMMITTEE
27
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
EUROPEAN NATURAL GAS MARKET DYNAMICS
335.8 345.6 332.4 324.8 311.9 325.2 307.3 311.7 290.6 292.6 282.8 264.1
228.5 231.6 260.7 262.6 274.0 274.6
258.2 290.3 266.7 254.2 255.4
214.3
564.2 577.3 593.1 587.4 585.9 599.8
565.2 602.0
557.3 546.8 538.2 478.4
0
100
200
300
400
500
600
700
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E
INDIGENOUS PRODUCTION IMPORTS (+BALANCE OF STORAGE) CONSUMPTION
Balance of European Gas Consumption, bcm1
Gazprom’s Share is Stable Demand for Gas Dropped Due to
2012 2013
25.4%
30.0%
2014E
30.6%
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%
MILD WEATHER
COMPETITION
FROM
RENEWABLES
AND COAL
SOURCES: IEA, EUROSTAT , GAZPROM EXPORT ESTIMATES 1 GCV = 8850 KCAL PER MCM, T = 20°C
28
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
RELIABLE GAS DELIVERIES TO EUROPE
Near 50 years of impeccable operating track record1
0
20
40
60
80
100
120
140
160
180
19
67
19
68
19
69
19
70
19
71
19
72
19
73
19
74
19
75
19
76
19
77
19
78
19
79
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
E
bcm
1 Total gas sales in foreign markets excluding FSU
Despite any crisis Gazprom has always fulfilled its export obligations and will do so in the future
29
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
GAZPROM SALES TO EUROPEAN AND CIS MARKET
138.6
150.0 138.8
161.5 146.6
0
40
80
120
160
2009 2010 2011 2012 2013 2014E
140.6
$341
bcm
$383
$402 $385
$302 $296
per
mcm
54.6
68.0 71.1
64.4
56.1
44.9
0
20
40
60
80
2009 2010 2011 2012 2013 2014E
$308
$205
per
mcm
$235
$298 $274 $272
bcm
Gazprom Gas Deliveries to Europe1 Gazprom Gas Deliveries to CIS and Baltics
118.5
27.4
4.6
18.5
5.0
114.2
23.8
4.7
17.9
4.3
0
40
80
120
160
GAZPROM JSC ALGERIA (INCL. LNG)
LYBIA (INCL. LNG)
QATAR NIGERIA
1Q-3Q 2013 1Q-3Q 2014
bcm
84.1
30.8
55.6
82.1
30.5
45.1
0
40
80
120
NORWAY UNITED KINGDOM NETHERLANDS
1Q-3Q 2013 1Q-3Q 2014
bcm
Supply of the biggest gas exporters to Europe1 Supply of the EU biggest gas producers
1 European countries with Turkey (excluding CIS and Baltics)
30
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
MID-TERM PROVISIONS
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
Short-term forecasts of European gas consumption by leading consulting companies (2008 consumption = 100%)
100%
89.7
79.8
84.4
89.0 89.0
82.8 83.3
86.0
86.2
90.8 91.6
88.1 86.5
87.6
78%
80%
82%
84%
86%
88%
90%
92%
94%
96%
98%
100%
102%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Actual demand 2006-14E
CERA (2013-Nov)
CERA (2014-Jun)
PIRA (2013-Oct)
PIRA (2014-Oct)
CEDIGAZ - pessimistic (2013-Jun)
CEDIGAZ - base (2013-Jun)
IEA (2013-May)
IEA (2014-May)
31
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
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
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
0
100
200
300
400
500
600
Jan
-03
Se
p-0
3
Ma
y-0
4
Jan
-05
Se
p-0
5
Ma
y-0
6
Jan
-07
Se
p-0
7
Ma
y-0
8
Jan
-09
Se
p-0
9
Ma
y-1
0
Jan
-11
Se
p-1
1
Ma
y-1
2
Jan
-13
Se
p-1
3
Ma
y-1
4
NBP Day-Ahead
TTF Day-Ahead
BAFA
$/Mcm
200
250
300
350
400
450
500
550
600
Jan
-98
Jan
-99
Jan
-00
Jan
-01
Jan
-02
Jan
-03
Jan
-04
Jan
-05
Jan
-06
Jan
-07
Jan
-08
Jan
-09
Jan
-10
Jan
-11
Jan
-12
Jan
-13
Jan
-14
Seasonal swing in
Russian gas daily
deliveries doubled
from 1998 to 2014
Mcm/Day
32
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
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
200
220
240
260
280
300
320
340
360
Fe
b-1
5
Ma
y-1
5
Au
g-1
5
No
v-1
5
Fe
b-1
6
Ma
y-1
6
Au
g-1
6
No
v-1
6
Fe
b-1
7
Ma
y-1
7
Au
g-1
7
No
v-1
7
Fe
b-1
8
Ma
y-1
8
Au
g-1
8
No
v-1
8
Fe
b-1
9
Ma
y-1
9
Au
g-1
9
No
v-1
9
Henry Hub-Based Cost-Plus Prices Range
NBP Forward Curve
$/Mcm
SOURCE: PIRA
1 In 1-3Q 2014; for purposes of this comparison Europe is regarded without Norway 2 The price includes transportation from Henry Hub to Lake Charles, LA, liquefaction, transport, and regasification in the U.K. or Belgium
42,1%
10,8% 9,3%
1,8%
3,5%
2,4%
21,5%
3,5% 2,7% 2,4%
Gazprom oil- and quasi-oil-indexed Norway 1/3 oil-indexed
Algeria oil-indexed Libya oil-indexed
Qatar oil-indexed other LNG oil-indexed
Norway 2/3 hub-indexed Qatar hub-indexed
Gazprom hub-indexed other LNG hub-indexed
69.9%
30.1%
33
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
GAS DEMAND WILL EVENTUALLY RETURN TO EUROPE
Bright Spots: New Applications
for Gas in Europe
Natural Gas in Power Generation
Rebound
Small-scale CHP
+ 30 bcm
In 2035:
+ 50 bcm
Bunkering
+ 60 bcm
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.
207
bcm
2010
139
bcm
2014E
234
bcm
2035F
Due to:
aging coal and nuclear plants retirement;
obligatory CCS for new-built coal power stations (UK);
adjustment of the carbon emission allowances market.
SOURCES: IHS, GAZPROM EXPORT ESTIMATES
34
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
ENTERING NEW GAS MARKETS
Gazprom in Asia-Pacific
Gazprom is set to build a diversified gas sales portfolio in Asia
comprising both pipeline gas and LNG:
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.
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.
WESTERN ROUTE PROJECT
Further negotiations
and firm agreements
May, 2014
SPA signed
September, 2014
Start of construction works
Not earlier than 2018
Estimated commissioning date
EASTERN ROUTE PROJECT
November, 2014
Framework Agreement Signed
Europe
Asia-
Pacific Atlantic
LNG deliveries by Gazprom Group Pipeline gas deliveries by Gazprom
Pipeline gas exports to China
are planned to reach 68 bcm/year in 2020+
Gazprom will supply >30 mmt/year
of LNG in 2022+ globally
Gazprom LNG Supply Source Structure
2014
LNG from Gazprom projects LNG Under Term Contracts Spot Trading
46%
36%
18%
85%
14%
1%
2025
35
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
GAZPROM LNG BUSINESS
Existing supply sources Third-party supply sources New Gazprom LNG Projects
Vladivostok LNG
10 mmt/year
Baltic LNG
10 mmt/year
Total Output
25 mmt/year
Sakhalin-2
10 mmt/year
Gazprom Offtake
1 mmt/year
Yamal LNG
16.5 mmt/year
Colombia FLNG
0.5 mmt/year
Gazprom Offtake
0.5 mmt/year
Sakhalin-2 T3
5 mmt/year
Gazprom Offtake
2.9 mmt/year
LNG contracted under
LT HOA with Yamal LNG
project
up to 2.9 mmt/year LT GAIL SPA
Went “live”
(CP lifted)
0.5 mmt/year
LNG contracted under MT
SPA with Colombia LNG
project
2 LNG Carriers
Newbuilds Velikiy Novgorod
and Pskov were delivered to
Gazprom
52 Cargoes were delivered
by GM&T to Asia-Pacific
and Atlantic markets
2014 Highlights
Global Contracted LNG Volumes vs. Demand Gazprom LNG Portfolio Development1
1 These volumes do not include spot trade
0
5
10
15
20
25
30
35
2015 2020 2025
Third party term volumes
Sakhalin-2 T3
Baltic LNG
Vladivostok LNG
Yamal LNG
Colombia FLNG
Sakhalin-2
mmt
0
100
200
300
400
500
2015 2020 2025
mmt Projected LNG Demand
SOURCE: WOOD MACKENZIE
36
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
GAZPROM ACTIVITIES IN THE GLOBAL NGV MARKET
Bunkering On-road transport
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
mt
LNG consumption as bunker fuel in Baltic
and Northern seas in 2015-2025
SOURCE: SSPA SWEDEN AB
Pilot project: port of Rostock
(more than 13 mln tons of cargo and more than 2 mln
passengers per year)
Participants:
Project task: Creating a distribution center in the port of Rostock for
LNG supply to marine/land transport and to remote industrial
customers
Gazprom Group companies’ gas sales
for on-road transport
0
5
10
15
20
2012 2013 2014 2015
Poland
Czech Republic/Slovakia
Germany
*
mcm/year
*Forecast
Gazprom Group companies G4T assets
Gazprom Germania GmbH (100% owned by Gazprom
export): 23 stations
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): EPC-
contractor in SSLNG segment
Vemex: gas supply to 1 third party station
JV between Gazprom and Petrovietnam: development
of NGV-infrastructure and gas supply to gas-filling
stations
GERMANY
CZECH REPUBLIC
POLAND
SLOVAKIA
VIETNAM
37
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
FINANCE ANDREY KRUGLOV DEPUTY CHAIRMAN OF GAZPROM MANAGEMENT COMMITTEE – HEAD OF THE DEPARTMENT
38
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
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below this line INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
GAZPROM POSITION IN GLOBAL ENERGY
Comparative revenues, EBITDA
and net income CAGR1
Top-5 oil and gas majors
by EBITDA, 9M2014 LTM
1 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
19.2% 19.5% 19.4%
6.9%
4.4% 4.4%
0
5
10
15
20
25
REVENUES EBITDA NET INCOME
GAZPROM TOP-10 OIL & GAS MAJORS
%
56,1 55,5 53,9 48,0
39,9
0
10
20
30
40
50
60 USD bln
STRONG FINANCIAL POSITIONS AMONG OIL & GAS MAJORS
39
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
SUSTAINABLE FREE CASH FLOW GENERATION
Gazprom FCF generation1
8,2
18,7
27,0
43,6 43,7 37,9
-0,3
3,0
7,7
8,3 7,5 12,9
-1
10
20
30
40
50
60
2004-2005 2006-2007 2008-2009 2010-2011 2012-2013 9m2014 LTM
CASH CAPITAL EXPENDITURES FREE CASH FLOW
51.9 51.2
34.7
21.7
7.9
50.8
Gazprom self funding2
97%
92%
99%
123%
110%
142%
113%
140%
105% 109%
125%
134%
80%
90%
100%
110%
120%
130%
140%
150%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 9m2014 LTM
1 Period averages 2 OCF/Cash CAPEX
USD bln
100%
40
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
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below this line INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
BALANCED CAPEX
7
10
12
18
23
32
26
37
55
50
46
35
0
10
20
30
40
50
60
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015F
GAS UPSTREAM
GAS DOWNSTREAM
OIL
POWER GENERATION
OTHER
CASH CAPEX
USD bln
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
2015 Priorities
Gas Upstream
Bovanenkovo field
Development of fields related to the Eastern Gas
Program and export to China
Gas brownfields development and support
Gas Downstream
Bovanenkovo-Ukhta pipeline
GTS Extension – Southern Corridor
Preliminary works, roll out of the Eastern Gas
Program and China export project
Oil
Novoportovskoe, Messoyakha and other greenfields
development, brownfields support and refining
modernization
Power generation
Investments in new capacity
41
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
CAPEX EFFICIENCY
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.
CAPEX:
Gazprom vs Russian oil majors1
CAPEX/hydrocarbon production:
Gazprom vs Russian oil majors1
18,7
27,0
43,6 43,7
37,9
26,2
32,4
37,1
49,2 47,8
0
10
20
30
40
50
60
70
80
2006-2007 2008-2009 2010-2011 2012-2013 9m2014 LTM
GAZPROM RUSSIAN OIL MAJORS AGGREGATE
USD bln
5,2
8,2
12,9 13,2
12,2
8,8
10,4
11,5
14,4
12,5
0
2
4
6
8
10
12
14
16
2006-2007 2008-2009 2010-2011 2012-2013 9M2014LTM
GAZPROM RUSSIAN OIL MAJORS AGGREGATE
USD/boe
SOURCE: COMPANY DATA SOURCE: COMPANY DATA 1 Period averages
42
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
Jan
2004
Jan
2005
Jan
2006
Jan
2007
Jan
2008
Jan
2009
Jan
2010
Jan
2011
Jan
2012
Jan
2013
Jan
2014
Jan
2015
S&P MOODY'S FITCH INVESTMENT GRADE
TOP RUSSIAN BORROWER
Debt maturity profile
Cost of debt financing
One of the lowest levels of leverage, 9M2014
Gazprom credit ratings
24% 22% 18% 16%
17% 19% 13% 14%
38% 33%
36% 39%
21% 26% 33% 31%
2011 2012 2013 9M2014
LESS THAN 1 YEAR 1-2 YEARS 2-5 YEARS MORE THAN 5 YEARS
6.2%
2.7%
5.4%
0
2
4
6
8
10
2008 2009 2010 2011 2012 2013 9M2014
WEIGHTED AVERAGE FIXED INTEREST RATE
WEIGHTED AVERAGE FLOATING INTEREST RATE
WEIGHTED AVERAGE INTEREST RATE
%
SOURCE: BLOOMBERG, 9M2014 COMPANY DATA
* Rosneft net debt is adjusted for prepayments on long-term oil supply agreements ** 1h2014 data
Moody's
A- A3
BBB+ Baa1
BBB Baa2
BBB- Baa3
BB+ Ba1
BB Ba2
BB- Ba3
B+ B1
S&P,
Fitch
0
20
40
60
80
100
120
140
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5
De
bt,
US
D b
ln
Net debt / EBITDA LTM
*
**
**
43
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
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HONG KONG, SINGAPORE
26; 124;195
DIVIDEND PAYOUT
Dividend
per share
12M dividend yields
of major oil & gas companies1
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
0,69 1,19
1.50
2,54 2,66
0,36
2,39
3,85
8,97
5,99
7.20
11,5
17,5 17,5 17,5 17,5
4,9
9,1
25.0 24,1
25,5 25.0
0
5
10
15
20
25
30
0
2
4
6
8
10
12
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
DIVIDEND PAYOUT RATIO, % (RIGHT SCALE)
RUB / Share %
7,7%
5,8% 5,8% 5,8%
5,3% 4,8%
4,8%
4,1% 3,8%
2,9%
0%
2%
4%
6%
8%
10%
44
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
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HONG KONG, SINGAPORE
26; 124;195
NATURAL HEDGING AGAINST ROUBLE VOLATILITY
Hard currency denominated revenues Hard currency denominated cash OPEX
Hard currency denominated CAPEX Debt distribution by currency
SOURCE: COMPANY DATA, MANAGEMENT ESTIMATES Data for revenues, cash OPEX AND CAPEX is adjusted on RUB-denominated amounts linked to hard currency * Hard currency — mainly USD and EUR
2%
5%
5%
3% 6%
3%
1%
2%
4%
5%
16%
17%
31%
0% 25% 50% 75% 100%
Other
Gas storage
Distribution
Electric and heat energy generation and sales
Refining
Crude oil and gas condensate production
Gas production
Transportation
HARD CURRENCY* - 21%
ROUBLES - 79%
11%
7%
16%
31%
3%
3%
7%
14%
8%
0% 25% 50% 75% 100%
Other revenues
Gas transportation
Electricity and heat energy
Gas sales, Russia
Crude oil, gas condensate and refined products
domestic sales
Gas sales, FSU (ex. Russia)
Crude oil, gas condensate and refined products
export
Gas sales, Europe
HARD CURRENCY* - 65%
ROUBLES - 35% 1%
1%
4%
1%
1%
8%
8%
20%
12%
13%
4%
4%
6%
3%
13%
1%
0% 25% 50% 75% 100%
Other cash operating expenses
Staff costs
Goods for resale
Repairs
Materials
Transit of gas, oil and refined products
Taxes other than income
Purchased gas and oil
HARD CURRENCY* - 44%
ROUBLES - 56%
RUB
14%
Other
1%
USD
52%
EUR
33%
45
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
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below this line INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
0
20
40
60
80
100
120
140
160
1q08 1q09 1q10 1q11
OIL GAZPROM GAS EUROPE NBP
%
0
10
20
30
40
50
60
70
0
20
40
60
80
100
120
140
1q08 1q09 1q10 1q11 1q12 1q13 1q14 1q15
OIL PRICE RUB/USD RATE
$/bbl RUB/USD
0
20
40
60
80
100
120
0
10
20
30
40
50
60
70
2008 2009 2010 2011 2012 2013 9M14
LTM
2015E
CAPEX FCF OIL PRICE (RIGHT SCALE)
$bln $/bbl
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 RUB/USD rates during 2014 & 2008 oil price shocks
EBITDA and NET DEBT during 2008-2010 crisis Conservative financial policy improves FCF outlook
SOURCE: BLOOMBERG SOURCE: COMPANY DATA, BLOOMBERG
0
20
40
60
80
100
120
0
20
40
60
80
100
120
2008 2009 2010 2011 2012 2013
EBITDA NET DEBT OIL PRICE (RIGHT SCALE)
$bln $/bbl
46
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
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below this line INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
DIVERSIFICATION OF CAPITAL MARKETS
INCREASE OF GAZPROM GDR HOLDERS IN ASIA-PACIFIC
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 2015 Investor Day held in Hong
Kong and Singapore
Special focus on Asian markets during road shows
and investor meetings
Gazprom obtains credit rating from an
Asian rating agency
Gazprom’s credit rating may potentially exceed the
sovereign credit rating of Russia
Potential listing on Hong Kong
or other Asian stock exchanges
Northern
America
48% Europe
48%
Asia-
Pasific
4%
Other
0%
2008
Northern
America
46%
Europe
43%
Asia-
Pacific
10%
Other
1%
2014
SOURCE: ANALYTIC SURVEY NASDAQ OMX, T1IR DECEMBER 2014
47
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
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below this line INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
CORPORATE GOVERNANCE
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
Clearly defined information disclosure
processes set by
robust internal regulations
Equal access of all stakeholders to
the disclosed information
Transparency of Gazprom's activities
is ensured through
Over 18 years of audited IFRS reports
publication
Information disclosure
Corporate governance improvement
38,37%
10,97%
0,89%
26,23%
23,54%
2014 (AS OF 30.06)
RUSSIAN FEDERATION
ROSNEFTEGAZ*
ROSGAZIFIKATSIYA*
HOLDERS OF DEPOSITORY RECEIPTS
OTHER LEGAL ENTITIES AND INDIVIDUALS
Gazprom shareholding structure
Actions taken in 2014
Gazprom shares included in the First Level quotation list of Russian Stock Exchanges
New indicators TSR and ROE (jointly weighing 30%) added to the KPIs for Management
Extension of the period up to 38 days for providing information materials for Shareholders Meetings
The Corporate Ethics Committee established according to the Gazprom's Code of Corporate Ethics
Actions in progress
Enhancement of the incentive programme for
the members of the Board of Directors
Creation of a Corporate Secretary function
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
38,37%
10,74%
0,89%
13,20%
36,80%
2006 (AS OF 31.12)
RUSSIAN FEDERATION
ROSNEFTEGAZ*
ROSGAZIFIKATSIYA*
HOLDERS OF DEPOSITORY RECEIPTS
OTHER LEGAL ENTITIES AND INDIVIDUALS
48
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
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HONG KONG, SINGAPORE
26; 124;195
VALUATION COMPARISONS VS PEERS
EV/2013 proved reserves* EV/EBITDA 9M2014 LTM
EV/2013 production P/E 9M2014 LTM
1
16
19
17
8
14 13
19
3 3 2 4
0
5
10
15
20
25
Ga
zpro
m
Exx
on
Ch
evro
n
Sh
ell
BP
Tota
l
Pet
rob
ras*
*
Pet
roC
hin
a
Ro
snef
t
Luko
il
No
vate
k
Ro
snef
t**
*
US
D /
bo
e
25
268
229 202
122
188 192
311
55 59 61 69
0
50
100
150
200
250
300
350
Ga
zpro
m
Exx
on
Ch
evro
n
Sh
ell
BP
Tota
l
Pe
tro
bra
s**
Pet
roC
hin
a
Ro
snef
t
Luko
il
No
vate
k
Ro
snef
t**
*
US
D /
bo
e
2
7
5 5
5 4
7 7
3 2
5
4
0
1
2
3
4
5
6
7
8
Ga
zpro
m
Exx
on
Ch
evro
n
Sh
ell
BP
Tota
l
Pet
rob
ras*
*
Pet
roC
hin
a
Ro
snef
t
Luko
il
No
vate
k
Ro
snef
t**
*
2
11 10
13 13
10
6
16
3
6 7
3
0
2
4
6
8
10
12
14
16
18
Ga
zpro
m
Exx
on
Ch
evro
n
Sh
ell
BP
Tota
l
Pet
rob
ras*
*
Pe
tro
Chi
na
Ro
snef
t
Luko
il
No
vate
k
Ro
snef
t**
*
SOURCE: BLOOMBERG, COMPANY DATA
* 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
49
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
17% of global gas reserves
72% of Russian gas reserves
14% of global gas production
73% of Russian gas production
>100% Reserve replacement ratio
Focus on shareholders value
Solid dividend policy
Increased level of transparency
Commitment to sustainable
development
Natural gas is future of the world energy
Gazprom is a global energy major
30% share in the European gas market
Diversification of products and export
markets is key to our business continuity
Impressive profitability
Conservative CAPEX management
Efficient system of OPEX management
Strong liquidity ratios
Unparalleled
Fundamentals 1
Sound Strategy &
Strong Market Position 2
Improving Corporate
Governance 3
Conservative
Financial Policy 4
VALUE DRIVERS
50
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 INVESTOR DAY 2015
HONG KONG, SINGAPORE
26; 124;195
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]