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GazpromConsolidated 3Q 2009 IFRS
Financial Results Presentation
11
Disclaimers
This presentation has been prepared by OJSC Gazprom (the “Company”), and comprises the slides for a presentation to investors concerning the Company. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities representing shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.
Any viewer of this presentation considering a purchase of such securities is hereby reminded that any such purchase should be made solely on the basis of the information contained in the prospectus or other offering document prepared in relation thereto and will be subject to the selling restrictions set out therein. No reliance may be placed for any purposes whatsoever on the information contained in this presentation, or any other material discussed at any presentation or on its completeness, accuracy or fairness. The information in this presentation should not be treated as giving investment advice. Care has been taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and reasonable. However, the contents of this presentation have not been verified by the Company. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this presentation. None of the Company or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.
The information in this presentation includes forward-looking statements. These forward-looking statements include all matters that are not historical facts, statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties to be set forth in the prospectus, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods.
The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. No person is under any obligation to update or keep current the information contained herein.
By attending the presentation you agree to be bound by the foregoing limitations.
3Q 2009 Highlights
3
Key Financial Highlights
Strong Revenue despite severe market conditions, RR 2.4 trn for 9M 2009
Adjusted EBITDA amounted to RR 208 bln in 3Q 2009 decreased by 41% compared to 3Q 2008
Profit for the period(1) amounted to RR 175 bln in 3Q 2009 increased by 33%compared to 3Q 2008
Total debt amounted RR 1,762 bln as of the end of 9M 2009 and has not changed considerably comparing with RR 1, 713 bln as of the end of 1H 2009
Higher Leverage as of the end of 9M 2009 due to valuable Adjusted EBITDA decrease. Total Debt / Adjusted EBITDA(2) amounted to 1,7x as of the end of 9M 2009 compared to 1,4x as of the end of 1H 2009
(1) Profit for the period attributed to owners of OAO Gazprom
(2) Total Debt/Adj.EBITDA is calculated on the LTM basis
3Q 2009 Operational Results
55
Export Markets
25 2510 1122 15
25
173
222272
151148
167 170
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
FSU Volumes Prices
54 46 45 37 3940 47
466438383
280250
346390
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
Volumes Prices
339 323 331438 433
298265
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
Net sales of gas in Europe & other countries
Gas prices and volumes in Europe & other countries Gas prices and volumes in FSU
85107868083 76 64
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
(RR billion) (RR billion)
Net sales of gas in FSU
($/mcm) ($/mcm)(bcm) (bcm)
66
Domestic Market
173
91
139158
90 7876
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
Net revenues
40,949,6
93,286,8
45,554,9
105,0
19041 8181 6951 6041 6671 6551 652
20,0
46,0
72,0
98,0
124,0
150,0
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
Sales volumes in Russia Domestic prices
Gas prices and volumes
18%
46%
9%9%
4%
9%
5%
Power generation
Metallurgy
Agro chemistry
Cement industry
Households
Utility sector
Other
Domestic gas sales by consumer type in 3Q09 (1)
(1) Management estimates
(RR/mcm)(bcm)
(RR billion)
3Q 2009 Performance
8
Net Profit for the Period Reconciliation
174142 (149) 144
11 (10)35
Profit for the period3Q08
Operating profit One-off andfinancial items
Share of net incomeof associated
undertakings andjointly controlled
entities
Losses on disposalof available-for-sale
financial assets
Profit tax expense Profit for the period3Q09
Factors influenced 3Q09 Net Profit (Y-o-Y, RR billion)
Due to decrease of Sales by 68 RR bln and increase of OpEx by 81 RR bln
Increase primarily relates to net financial income amounted 74 RR bln in 3Q09 and fixed loss from change in fair value of call option amounted 70 RR bln in 3Q08
Caused by a decrease of
income tax rate from 24% to 20%
Mainly due to increasedNet income of associated
and jointly controlled entities and due to new
investments
9
(9)(11)(9)(6)(4)(2)
(0,5)
43
84
(140)(143)
(36)
(0,3)
17
31,3332,21
33,93
27,27
24,2523,6324,26
-150
-100
-50
0
50
1001Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
0
5,9
11,8
17,7
23,6
29,5
35,4
Net Interest expense Net Exchange gains/losses Avg. RR/USD exchange rate
Financial Income and Financial Expenses
Effect of exchange rates dynamics (RR billion)
RR/USDRR bln
10
409 345 346 388 352432
137 303147
171 181182
0
200
400
600
800
1Q08 1Q09 2Q08 2Q09 3Q08 3Q09
OpEx without purchased gas and oil Purchased gas and oil
Operating Expenses growth (RR billion)
Operating Expenses
Without purchased oil and gas expenses OpEx increased by 5% in 9M09 (y-o-y)
Inflation rate(1) amounted 11% in September 2009 ( y-o-y)
-16% +12% +23%
(1) Source: Federal State Statistics Service
11
1 103837 868 1 018 1 191
1 4691 335
1 7621 7131 534
1 3661 1641 117
1 478
1Q08 1H08 9M08 2008 1Q09 1H09 9M09
Net Debt
1.6
1.1
1.7
0.9
1.71.4
0.8
1.4
0.7
1.4
2005 2006 2007 2008 9M09
Total Debt / Adj. EBITDA Net Debt / Adj. EBITDA
11
Debt Overview
(1) Total debt: short-term borrowings and current portion of long-term borrowings, short-term promissory notes payable, long-term borrowings, long-term promissory notes payable and restructured tax liabilities.(2) Excluding promissory notes.
Credit metrics
20% 30% 34% 32% 31%17%
12% 13% 13% 10%
39% 25% 19% 20% 30%
25% 33% 35% 35% 30%
2005 2006 2007 2008 9M09
Less that 1 year 1-2 years 2-5 years More that 5 years
(% o
f deb
t)
Debt maturity profile (2)
Total Debt (1), RR billion
12
Key Factors in 2009
Quick recovery in production and sales started from 3Q09
Reduced purchases from Turkmenistan
Core assets consolidation: NIS(1Q09), Sibir Energy(2Q09), Moscow Refinery(2Q09), Salavatnefteorgsintez(2Q09), SeverEnergia(3Q09)
Foreign currency exchange rates dynamics
Are main factors which influenced company’s financial performance during 2009