GAZPROM INVESTOR DAY€¦ · INVESTOR DAY 2015 HONG KONG, SINGAPORE GAZPROM IN FIGURES 17% Gas...

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GAZPROM INVESTOR DAY

FEBRUARY 2015

HONG KONG, SINGAPORE

GAS BUSINESS

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below this line INVESTOR DAY 2015


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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


Finance

Andrey Kruglov

Deputy Chairman of Gazprom Management Committee


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

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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


Peak annual production 65 bcm of gas 2.8 mn t of stable condensate

Yuzhnaya industrial zone


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



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


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


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

Do not put anything



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



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



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



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



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



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



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



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



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



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



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



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



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

Do not put anything



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



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

Do not put anything



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



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



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

Do not put anything



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

Do not put anything



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


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


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

Do not put anything



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

Do not put anything



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

Do not put anything



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

Do not put anything



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



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



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]

mailto:[email protected]

mailto:[email protected]

GAZPROM INVESTOR DAY€¦ · INVESTOR DAY 2015 HONG KONG, SINGAPORE GAZPROM IN FIGURES 17% Gas...

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