1Q2016 IFRS CONSOLIDATED FINANCIAL RESULTS
AUGUST 10, 2016
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69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
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1; 70; 122
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26; 124;195
Alexander Ivannikov
Head of the Department
3
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245; 190; 50
100; 190; 235
90; 90; 90
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1; 70; 122
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DISCLAIMERS
This presentation has been prepared by PJSC Gazprom (the “Company”), and comprises the slides for a presentation to investors
concerning the Company. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of
any offer to purchase or subscribe for, any shares or other securities representing shares in the Company, nor shall it or any part of it nor
the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.
Any viewer of this presentation considering a purchase of such securities is hereby reminded that any such purchase should be made
solely on the basis of the information contained in the prospectus or other offering document prepared in relation thereto and will be
subject to the selling restrictions set out therein. The information in this presentation should not be treated as giving investment advice.
Care has been taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and
reasonable. However, the contents of this presentation have not been verified by the Company. Accordingly, no representation or
warranty, express or implied, is made or given by or on behalf of the Company or any of its members, directors, officers or employees or
any other person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this
presentation. None of the Company or any of their respective members, directors, officers or employees nor any other person accepts
any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection
therewith.
The information in this presentation includes forward-looking statements. These forward-looking statements include all matters that are
not historical facts, statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the
Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company
operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and
uncertainties to be set forth in the prospectus, because they relate to events and depend on circumstances that may or may not occur in
the future. The Company cautions you that forward looking statements are not guarantees of future performance and that its actual
results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ
materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the
Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates
are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative
of results or developments in future periods.
The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change
without notice. No person is under any obligation to update or keep current the information contained herein.
By attending the presentation you agree to be bound by the foregoing limitations.
4
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
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1,737
444 362
674
237
1,783
Total net sales Adj. EBITDA Net profit Operating CF Free CF Net debt1 2 3 4
1 EBITDA adjusted by changes in impairment provisions 2 Profit for the period attributed to owners of PJSC Gazprom 3 Free cash flow is calculated as Net cash provided by operating activities less Capital expenditures 4 Compared to Net debt as of December 31, 2015
SUMMARY OF 1Q2016 IFRS FINANCIAL RESULTS
+5%
(5%)
(3%)
(14%)
(24%)
(6%)
1q15 vs 1q16
RR bn
5
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
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26; 124;195
GAZPROM VS PEERS
Top-5 by FCF 1
Source: Companies’ reports, Bloomberg, Factset 1 Free Cash Flow = Net Cash from operating activities – Cash CAPEX 2 Attributed to shareholders 3 Adjusted for prepayments and operations with securities
3,183
0
1 000
2 000
3 000
4 000
5 000
Gazprom Sinopec PetroChina Rosneft PTT
$ mm
Top-5 by net income 2
4,857
0
1 000
2 000
3 000
4 000
5 000
Gazprom Exxon Total Novatek Sinopec
$ mm
3
6
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150; 150; 150
68; 103; 124
69; 165; 187
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100; 190; 235
90; 90; 90
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116,3
89,0 84,5
129,0 112,9
0
50
100
150
200
1q15 2q15 3q15 4q15 1q16
8,8 8,9 9,2 9,1 9,3
0
5
10
15
1q15 2q15 3q15 4q15 1q16
4,1 3,7 3,5
4,1 4,2
0
2
4
6
1q15 2q15 3q15 4q15 1q16
42,1
32,5 29,7
40,8 41,4
0
20
40
60
1q15 2q15 3q15 4q15 1q16
46,4
17,8
8,7
39,0
48,9
0
20
40
60
80
1q15 2q15 3q15 4q15 1q16
Natural gas production Crude oil production Gas condensate production
1. Includes Russian generating companies: Mosenergo, OGK-2, TGK-1, MIPC
Calculations may diverge due to rounding.
bcm mln ton mln ton (3%)
Electricity generation 1 Heat generation 1
bn kWh mln Gcal
+2% +6%
(2%) +5%
HYDROCARBON PRODUCTION, ELECTRICITY AND HEAT
GENERATION
7
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80
40 31
71 75
3,568 3,493 3,709 3,779 3,873
0
1000
2000
3000
4000
0
20
40
60
80
100
120
140
1q15 2q15 3q15 4q15 1q16
VOLUMES AVERAGE PRICE IN RUSSIA
39 41 45 59 58
284
251 224 229
188
0
100
200
300
0
25
50
75
100
1q15 2q15 3q15 4q15 1q16
VOLUMES AVERAGE PRICE IN EUROPE & OC
GAS SALES
287
139 113
267 292
0
50
100
150
200
250
300
1q15 2q15 3q15 4q15 1q16
NET SALES TO RUSSIA
RR/1 mcm bcm
RR bn
Calculations may diverge due to rounding. 1 Net of value added tax (VAT) 2 OC - Other countries: including LNG sales 3 VAT is not charged on sales 4 Net of custom duties and excise tax on gas exports
543
404 484
735 663
0
200
400
600
800
1q15 2q15 3q15 4q15 1q16
NET SALES TO EUROPE & OC
RR bn
bcm
13 8 6
13 11
213 192
173 182 157
0
100
200
300
400
0
10
20
30
40
1q15 2q15 3q15 4q15 1q16
VOLUMES AVERAGE PRICE IN FSU
156
74 62
138 117
0
50
100
150
200
250
1q15 2q15 3q15 4q15 1q16
NET SALES TO FSU
bcm USD/1 mcm USD/1 mcm
1
Russia Europe & OC2 FSU
3,4 3,4
RR bn
+2% +22% (25%)
8
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100; 190; 235
90; 90; 90
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26%
66%
8%
OIL AND ENERGY BUSINESS
Calculations may diverge due to rounding. 1 Net of value added tax (VAT), excise tax and custom duties.
Net Sales1
424 468 467 456
413
0
100
200
300
400
500
1q15 2q15 3q15 4q15 1q16
133
85 74
133 148
0
30
60
90
120
150
180
1q15 2q15 3q15 4q15 1q16
RR bln RR bln
+11%
1Q2015 1Q2016
(3%)
Electric and heat energy Crude Oil and Gas Condensate; Refined Products
24%
68%
8%
CRUDE OIL AND GAS CONDENSATE; REFINED PRODUCTS
GAS BUSINESS AND OTHER REVENUES
ELECTRIC AND HEAT ENERGY
9
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150; 150; 150
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245; 190; 50
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90; 90; 90
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1,397 1,262
1,641
444 437
0
400
800
1200
1600
2000
2013 2014 2015 1q15 1q16
Cash CapEx
RR bn
1 CapEx breakdown as provided in Management Report
CAPITAL EXPENDITURES
-10%
+30%
-2%
44%
10%
27%
9%
4% 6%
TRANSPORT
PRODUCTION OF NATURAL GAS
PRODUCTION OF CRUDE OIL AND GAS CONDENSATE
REFINING
ELECTRIC AND HEAT ENERGY
OTHER CAPEX
Group’s CapEx breakdown1
43.9
33.2
27.1
7.1 5.9
0
10
20
30
40
50
2013 2014 2015 1q15 1q16
USD bn
-24%
-19%
-18%
10
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150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
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SUSTAINABLE FREE CASH FLOW GENERATION
Free Cash Flow1
Gazprom self funding2
1 Free Cash Flow = Net Cash from operating activities – Cash CAPEX 2 Net Cash from operating activities /Cash CAPEX
(6%)
252
-52
29
160
237
-100
-50
0
50
100
150
200
250
300
350
1q15 2q15 3q15 4q15 1q16
157%
85%
108%
134%
154%
0%
50%
100%
150%
200%
1q15 2q15 3q15 4q15 1q16
RR bn
11
26; 124;195
150; 150; 150
68; 103; 124
69; 165; 187
245; 190; 50
100; 190; 235
90; 90; 90
140; 200; 40
1; 70; 122
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22% 18% 17% 19% 20%
19% 13% 15% 14% 14%
33%
36% 36% 42% 45%
26% 33% 32%
25% 22%
2012 2013 2014 2015 1q16
LESS THAN 1 YEAR 1-2 YEARS 2-5 YEARS MORE THAN 5 YEARS
KEY DEBT METRICS
Debt maturity profile2
Cost of debt financing
SOURCE: BLOOMBERG, COMPANY DATA
Total and Net Debt
Gazprom credit ratings Moody's
A- A3 BBB+ Baa1 BBB Baa2 BBB- Baa3
BB+ Ba1 BB Ba2 BB- Ba3
B+ B1
Dagong,
S&P, Fitch
A A2 A+ A1
AA Aa AAA Aaa
Jan
2004
Jan
2005
Jan
2006
Jan
2007
Jan
2008
Jan
2009
Jan
2010
Jan
2011
Jan
2012
Jan
2013
Jan
2014
Jan
2015
Jan
2016
S&P MOODY'S FITCH
DAGONG INVESTMENT GRADE
6.36%
4.01%
5.65%
0
2
4
6
8
10
2008 2009 2010 2011 2012 2013 2014 2015 1q16
WEIGHTED AVERAGE FIXED INTEREST RATE
WEIGHTED AVERAGE FLOATING INTEREST RATE
WEIGHTED AVERAGE INTEREST RATE
%
1,075 1,113 1,651
2,083 1,783
426 689
1,038
1,359 1,565
0,7
0,5 0,6
0,9
1,0
0,0
0,3
0,6
0,9
1,2
0
1000
2000
3000
4000
5000
2012 2013 2014 2015 1q16
NET DEBT
CASH&CASH EQUIVALENTS NET DEBT/ADJ.EBITDA LTM
RUB bn x
1
1 Calculated using dollar values of Net debt and EBITDA 2 Excluding promissory notes
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Amount Coupon Maturity Transaction date Achievements
€350mm EURIBOR + 2.75% 1.5 years January 2015
• The first bilateral loan agreement in the business
relationship between Gazprom and Intesa Sanpaolo Group
• Is of great importance for the development of partnership
with credit institutions of Italy and the entire Europe
$500mm LIBOR + 3.25% 3 years April 2015 • Syndicated loan with JP Morgan as bank agent
• Asian banks participated
€150mm EURIBOR + 3.6% 4 years June 2015 • Loan from Intesa Sanpaolo S.p.A. bank
€300mm EURIBOR +3.6% 4 years July 2015 • Loan from UniCredit Bank Austria AG
$1,500mm LIBOR +3.5% 5 years August 2015 • Syndicated loan with China Construction Bank Corporation
as bank agent
€1,000mm 4.625% 3 years October 2015 • Public international debt offering under EMTN programme,
lead managers - Banca IMI S.p.A., J.P. Morgan, UniCredit
Bank, placement without new issue premium
€2,000mm EURIBOR +3.5% 5 years March 2016
• Facility agreement with Bank of China
• The largest deal in terms of the amount of financing
attracted directly from one financial institution and the first
bilateral loan facility agreement with a Chinese bank
CHF500mm 3.375% 2.5 years March 2016 • Public international debt offering under EMTN programme,
lead managers - Deutsche Bank AG Zurich branch,
Gazprombank (Switzerland) Ltd and UBS AG
SUCCESSFUL PERFORMANCE IN DEBT CAPITAL MARKETS
Recent transactions by PJSC Gazprom
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ADDITIONAL INFORMATION
14
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150; 150; 150
68; 103; 124
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100; 190; 235
90; 90; 90
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14
RUSSIAN NATURAL GAS BALANCE
Bcm 1Q2015 1Q2016
Natural gas resources 195.7 203.0
Domestic gas production 169.7 169.6
Other sources including Central Asian and Azerbaijani gas 5.8 5.7
Gas withdrawn from underground storage in Russia, Latvia and Europe 19.2 26.7
Decrease in the amount of gas within the gas transportation system 1.0 1.0
Natural gas distribution 195.7 203.0
Domestic consumption 143.1 143.0
including needs of the gas transportation system
and underground storages 8.5 8.9
Gas pumped into underground storages 0.1 0.01
Gas for LNG production 4.0 3.5
Foreign supplies 35.5 45.0
FSU supplies 11.9 10.3
Increase in the amount of gas within the gas transportation system 1.1 1.1
Source: Company Operating Data
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26; 124;195
THANK YOU FOR ATTENTION!