Company Presentation. April 2016

Transcription

1 Company Presentation April 2016

2 DISCLAIMER The information contained herein pertaining to SIBUR (the "Company") has been provided by the Company solely for use at this presentation. By attending this presentation, or by reading these presentation slides, you agree to be bound by the limitations set out below. This presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of, or be relied on in connection with, any contract or investment decision relating thereto. No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. The Company accepts no responsibility for any losses howsoever arising, directly or indirectly, from this presentation or its contents. The material contained in this presentation is presented solely for information purposes and is not to be construed as providing investment advice. As such, it has no regard to the specific investment objectives, financial situation or particular needs of any recipient. There may be material variances between estimated data set forth in this presentation and actual results, and between the data set forth in this presentation and corresponding data previously published by or on behalf of the Company. This presentation contains forward-looking statements, including (without limitation) statements containing the words "anticipates," "expects," "intends," "may," "plans," forecasts, "projects," "will," "would", "targets, believes and similar words. These statements are based on the current expectations and projections of the Company about future events and are subject to change without notice. All statements, other than statements of historical fact, contained herein are forward-looking statements. Forward-looking statements are subject to inherent risks and uncertainties, such that future events and actual results may differ materially from those set forth in, contemplated by or underlying such forward-looking statements. The Company may not actually achieve or realize its plans, intentions or expectations. There can be no assurance that the Company's actual results will not differ materially from the expectations set forth in such forward-looking statements. Factors that could cause actual results to differ from such expectations include, but are not limited to, the state of the global economy, the ability of the petrochemical sector to maintain levels of growth and development, risks related to petrochemical prices and regional political and security concerns. The above is not an exhaustive list of the factors that could cause actual results to differ materially from the expectations set forth in such forward-looking statements. The Company and its Affiliates are under no obligation to update the information, opinions or forward-looking statements in this presentation.

3 SIBUR AT A GLANCE Net debt/ EBITDA (USD) Revenue, USD bln EBITDA, USD bln EBITDA margin, % 35% (2) 31% 30% 32% 29% 20% Financial Performance (1) % x 0.7x 0.7x 1.0x 1.1x (2) 1.2x Ba2 Ba2 Ba2 Ba1 Ba1 Ba1 BB BB BB BB+ BB+ BB+ 1.8x Ba1 BB+ SIBUR Advantage SIBUR is a unique integrated gas processing & petrochemicals company Vertically integrated business model supporting resilient business performance Advantageous access to feedstock and high barriers to entry Highly diversified product portfolio Leading market position in the attractive Russian petrochemicals market Unique growth opportunities One of the highest rated companies in the region: Ba1/Moody s (affirmed in December 2015) and BB+/Fitch (affirmed in March 2016) Key Facts Revenue by Product (2015) Revenue by Region (2015) Other revenue Asia CIS Other 5 Energy Russia products % 30 % 56 Europe Petchem 26 production sites in Russia Over 27,000 employees Over 1,400 large customers from 75 countries representing diverse range of end-customer industries 3 (1) SIBUR s reporting currency is Russian rouble. Figures have been translated from RR to USD at average and end-of-period FX rates for the respective periods. (2) Adjusted for the estimated value of naphtha trading operations via Ust-Luga, ceased in 2015.

4 SIBUR OPERATES A UNIQUE VALUE CHAIN Integrated Value Chain from Feedstock Sourcing to the Production of Petrochemicals Oil-based feedstock (APG) Gas-based feedstock (NGLs) Gas processing / Fractionation Intermediates Basic polymers Synthetic rubbers Plastics & organic synthesis products EXTERNAL SOURCING OF HYDROCARBON FEEDSTOCK Oil-based feedstock (APG (1) ) By-product of oil production Sourced from oil companies Gas-based feedstock (NGLs (2) ) Sourced from gas and oil companies FEEDSTOCK AND ENERGY EBITDA, USD mln 2,299 1,298 EBITDA margin (3) 41.8% 37.1% Processing of APG into natural gas and NGLs Fractionation of NGLs into marketable energy products Sale of energy products to external customers and SIBUR s petrochemicals segment PETROCHEMICALS EBITDA, USD mln EBITDA margin 14.6% 31.4% Production and sale of four categories of petrochemical products Dominant share of feedstock sourced internally 4 (1) Associated petroleum gas. (2) Natural gas liquids include raw NGL, LPG (liquefied petroleum gas), naphtha. (3) Estimated EBITDA margin excludes naphtha trading via the Ust-Luga transshipment facility, ceased in 2015

5 EXTENSIVE ASSET BASE THROUGHOUT RUSSIA Tver Moscow Tula Kursk Voronezh Saint-Petersburg Nizhniy Novgorod Samara Perm Tyumen Salekhard Khanty-Mansiysk Tobolsk Ufa WESTERN SIBERIA Omsk Purovsk Tomsk Krasnoyarsk Kemerovo WESTERN SIBERIA Largest oil & gas reserves region in Russia Proven oil reserves 48 bln bbl Proven gas reserves 22 tcm Svobodny Energy Products Petrochemicals Joint Ventures Logistics gas processing & fractionation, MTBE & other fuel additives basic polymers synthetic rubbers plastics & organic synthesis intermediates other chemicals facilities operated under JVs raw NGL pipeline transshipment facility in Ust-Luga operated by SIBUR 5

6 VERTICALLY INTEGRATED MODEL WITH MULTIPLE EMBEDDED EARNINGS SUSTAINABILITY DRIVERS (1) 1. Vertically integrated business model supporting resilient business performance External sales represent c. 89% of Feedstock & Energy segment gross revenue 100% 68% Natural gas NGLs Earnings Sustainability Drivers Oil producers Oil-based feedstock (APG) Gas-based feedstock (NGLs) Feedstock & Energy segment 9 production sites Gross sales: RR EBITDA margin: 37.1% 100% NGLs 32% MTBE Petrochemicals segment 17 production sites Gross sales: RR bln EBITDA margin: 31.4% Basic polymers (PP, PE) Synthetic rubbers Plastics and organic synthesis Intermediates and other chemicals Deep discount between natural gas selling price and APG purchasing price hedges economics of APG processing Economics of raw NGL fractionation limits exposure to oil & oil derivative price volatility Prices for petrochemical products are only partially correlated with oil & oil derivative prices Oil & Gas producers X% - Share of available for sale volumes Methanol Dominant share of feedstock for petrochemicals segment is sourced internally Other third-party feedstock 6 (1) All figures based on FY 2015 financials.

7 2. Advantageous access to feedstock and high barriers to entry UNIQUE LARGE-SCALE TRANSPORTATION AND FEEDSTOCK PROCESSING INFRASTRUCTURE IN WESTERN SIBERIA KHANTY-MANSI AUTONOMOUS AREA YAMAL-NENETS AUTONOMOUS AREA Nyagan GPP Yuzhno-Priobskiy GPP Muravlenkovskiy GPP Gubkinskiy GPP NOYABRSK Yuzhno-Balykskiy GPP PYT-YAKH Belozerniy GPP Purovsky GCP (NOVATEK) PUROVSK Vyngapurovskiy GPP Nizhnevartovskiy GPP SIBUR owns and operates the largest and most extensive infrastructure for processing and transportation of feedstock in Western Siberia: 8 (1) out of 10 gas processing plants (GPP) APG processing capacity of 25.4 (1) bcm p.a. Raw NGL processing capacity of 6.6 mmtpa at flagship gas fractionation unit (GFU) in Tobolsk (out of 8 mmtpa of the Company s total capacity) Pipeline network of 2,697 km 4 railway loading racks (out of 6 operated by Feedstock & Energy segment) ECONOMIES OF SCALE INTEGRATED INFRASTRUCTURE HIGH BARRIERS TO ENTRY TOBOLSK SIBUR / third-party compressor station SIBUR / third-party power plant Tobolsk production site TYUMEN REGION third-party gas condensate plant SIBUR / third-party gas processing plant (GPP) SIBUR gas fractionation unit (GFU) SIBUR propane dehydrogenation facility (PDH) SIBUR polymers production SIBUR / third-party APG pipeline Gazprom condensate pipeline SIBUR / Gazprom natural gas pipeline SIBUR raw NGL pipeline truck transportation SIBUR / third-party loading rack 7 (1) Including Yuzhno-Priobskiy GPP operated under JV.

8 NGLs APG Hydrocarbon Feedstock Purchasing Expenses SECURED ACCESS TO FEEDSTOCK SIBUR s Feedstock Purchases RR bln APG NGLs bcm (1) Key Supply Contracts as of 31 December 2015 APG Rosneft RussNeft Gazprom Neft 91% of APG supplies for 2016 guaranteed under multi-year contracts WA maturity of supply contracts 15.7 years 2. Advantageous access to feedstock and high barriers to entry NGLs NOVATEK Gazprom 94% of NGLs supplies for 2016 guaranteed under multi-year contracts WA maturity of supply contracts 17.3 years mln tonnes 2.4 SIBUR s purchases Rosneft s share in APG purchases (2) SIBUR s purchases Purchases from Rosneft in JV (3) Outlook for Feedstock-Rich Gas Production in Russia (4) Associated Petroleum Gas 2015 APG flaring c.13% (5) of produced volumes Notes: (1) Billion cubic metres. (2) 49% of APG supplied by Rosneft to the GPPs of its JV with SIBUR. In March 2014, SIBUR gained full control over the JV via acquisition of a 49% stake from Rosneft. (3) 49% of raw NGL produced at the GPPs of the JV between SIBUR and Rosneft. These volumes were obtained by Rosneft and sold to SIBUR. In March 2014, SIBUR gained full control over the JV via acquisition of a 49% stake from Rosneft. (4) IHS CERA. (5) CDU TEK. bcm (1) Unstable Gas Condensate mln tonnes

9 DIVERSE DRIVERS AND END-MARKETS 3. Highly diversified product portfolio Liquids (2) Natural gas MTBE & other fuel additives Plastics & organic synthesis Basic polymers Synthetic rubbers Intermediates & other chemicals 2015 revenue (1), RR bln 31% 11% 7% 17% 13% 9% 7% x% Share in total revenue 2015 revenue (1) structure 79% 21% 100% 80% 20% 27% 73% 33% 67% 32% 68% 21% 79% Domestic Export Correlation with oil prices S Currency nature US dollar Russian rouble Key drivers Commodity cycle, global oil prices Transportation costs and export duties Changes of regulated gas tariffs by Russia s Federal Tariff Service Domestic fuel additives market (refineries upgrade, introduction of Euro standards, car fleet) Demand/ supply in multiple end-customer industries Import substitution Demand/supply in multiple end-customer industries Development of tyre & vehicle manufacturing Natural rubber prices Commodity cycle, demand/supply balance in respective petrochemical products Key endmarkets Petrochemicals, fractionation Power, utilities Residential applications Fuels FMCG, chemicals, construction FMCG, construction Automotive, construction Chemicals, petrochemicals 9 (1) External sales. (2) Primarily LPG and naphtha.

10 Plastics and organic synthesis Synthetic rubbers Basic polymers LEADING PLAYER IN THE HIGH-GROWTH DOMESTIC MARKET 4. Leading market position in the attractive Russian petrochemicals market SIBUR s Share in Russia s Production Capacity Growth Fundamentals Polypropylene LDPE 2015 Kg per Capita Consumption of Basic Polymers Polypropylene Polyethylene (LDPE) 56 % % 65 Western Europe 18 Western Europe 8 Central Europe 13 Eastern Europe 6 BR SBR SBS 2015 China Russia 7 14 China Russia % % % 72 % 100 CAGR, Russia Consumption Growth Outlook LLDPE 5.1% PET Expandable polystyrene MEG 2015 PP HDPE 2.6% 3.4% 17 PVC 2.4% 45 % % 49 % 51 MEG EPS 2.1% 2.4% LDPE 1.9% SIBUR s share Others PET 1.9% 10 Source: IHS, Market Report, IISPR.

11 Tobolsk PE price in Western Europe Western Europe EFFICIENT MONETISATION OF STRANDED FEEDSTOCK 5. Unique growth opportunities FEEDSTOCK Significant export duties for naphtha and LPG in Russia Ample feedstock base Illustrative HDPE price build-up Naphtha price (1) Naphtha feedstock cost (2) HDPE production cost (3) Total cost for producers (3) LPG price in Europe (4) Western Europe >4,000 km PETROCHEMICALS SIBUR s petrochemical hub in Tobolsk FEEDSTOCK Transport & export duties (4) LPG price in Tobolsk (4) LPG feedstock cost in Tobolsk (5) HDPE production cost net of by-product credits (3) Transportation to W.Europe (3) Total cost for producers (3) Long distances with infrastructural constraints >6,000 km SIBUR s production assets PETROCHEMICALS AND END-PRODUCTS Notes: (1) USD per tonne. (2) USD per tonne of polyethylene, assuming naphtha consumption ratio of 2.2x, and net of by-product credits. (3) USD per tonne of polyethylene. (4) USD per tonne of LPG-mix (propane and butane). (5) USD per tonne of olefins, assuming LPG-mix consumption ratio of 1.35x. China and Northeast Asia 11

12 ZAPSIBNEFTEKHIM (ZAPSIB-2): EXPANSION OF POLYOLEFINS PRODUCTION IN TOBOLSK 5. Unique growth opportunities Project Overview Greenfield construction of ethylene cracking unit and polyolefin production complex in Tobolsk within the SIBUR s Tobolsk petrochemical hub Configuration: Cracking unit: 1.5 mtpa of ethylene, 500 ktpa of propylene, 100 ktpa of crude C 4 (licensor: Linde AG; EP-contractor: Linde AG) PE production units: 1.5 mtpa of PE (licensor: INEOS; EP-contractor: Technip) PP production unit: 0.5 mtpa of PP (licensor: LyondellBasell; EPcontractor: ThyssenKrupp) HDPE and LLDPE Spreads to Feedstock USD per tonne 2,500 PE CFR China - LPG spread LPG, West Europe, CIF NWE 2,000 PE HDPE Blow Moulding CFR China PE LLDPE Film CFR China 1,500 1, Production Scheme Strong Position on the Global Cost Curve (2019) (2) 000 tonnes Ethane HDPE ,500 USD per tonne Ethylene ME Middle East, NA North America, NEA Northeast Asia, WE Western Europe Propylene Propane N-Butane Ethylene cracking unit (ECU) Ethylene 1,500 Propylene 525 HDPE LLDPE / HDPE LLDPE / HDPE PP ,000 1,500 NEA Avg WE Avg NA Avg WE Avg ME Avg 1, NEA Avg 4 1. Zapsibneftekhim Tobolsk-Polymer 1 1 NA Avg 3. Sibur-Kstovo ME Avg 4. Tomskneftekhim Cumulative capacity ( tonnes) 12 (1) National Wealth Fund. (2) Source: IHS 2015, SIBUR estimates.

13 ZAPSIBNEFTEKHIM (ZAPSIB-2) CAPEX AND FUNDING UPDATE Project Residual Budget for (1) Russian roubles 35% US dollars 35% Euro 30% Project Budget USD 7.2 billion * SIBUR own funds 50% NWF and RDIF (2) US dollars 25% ECA (3) Euro 25% Funding Sources Potential to be signed in RR * - estimate as of 31 December 2015 Progress Update as of 1 March 2016, % FEED Detail Engineering Procurement Construction Status as of 1 March 2016 Completed most preparation works, civil works started FEED for ECU, PP and PE units completed Overall completion 19.0%, including FEED stage EUR 1,676 mln Hermes ECA-backed committed credit line with a tenor of 15 yrs opened to fund German EP contracts; EUR 233 mln drawndown EUR 412 mln Coface ECA-backed term loan with a tenor of 15 yrs to fund contracts with Technip France signed and drawdown subject to conditions USD 1.96 bln raised from the NWF and RDIF Major EP contractors engaged (Linde, Technip, ThyssenKrupp Industrial Solutions) Overall progress: 19% 13 (1) Data as of 31 December Numbers and respective percentages calculated based on exchange rates as of 31 December 2015; RR / USD at 72.9, RR / EUR at (2) Cash balances as of 31 December (3) Undrawn amount.

14 1. Business Description: Additional Details 2. FY 2015 Operational and Financial Results 3. Exposure to Oil Prices & FX, Market Prices 4. Investment Programme Results 5. Yugragazpererabotka Transaction 14

15 ENERGY PRODUCTS Associated Petroleum Gas (APG) Oil Natural Gas Raw Natural Gas Liquids (Raw NGL) Liquefied Petroleum Gas (LPG) Naphtha C 1 C 2 C 3-4 C 5-6 C 7+ Methane (gas) Ethane (gas) Propane (gas / liquid) Butane (gas / liquid) Isobutane (gas / liquid) Pentane (liquid) Isopentane (liquid) Hexane (liquid) Heavy fractions fractions can be used as petrochemical feedstock 15

16 MULTIPLE PRODUCTS, GEOGRAPHIES AND CUSTOMER GROUPS Intermediates and other chemicals Synthetic rubbers 9 By product Processing services and other sales Total Group Sales Breakdown LPG Asia By region CIS Other 2015 Over 1,400 large customers from 75 countries Basic polymers 14 Plastics and organic synthesis products Customer Concentration (1) Contract / Spot Structure of Sales (1) Energy products Synthetic rubbers Intermediates and other chemicals Plastics and organic synthesis products Basic polymers 17 % 6% 3% 7 10% 8% Top % 11 18% Naphtha MTBE, raw NGL and other fuels 28% Natural gas 41% 40% % Largest customer Europe 33% 67% Energy 30 63% 37% Basic polymers Spot % 56 43% 57% Synthetic rubbers Contract Russia % 39% Plastics and organic synthesis representing diverse range of end-customer industries with low customer concentration and balanced contract / spot sales structure 16 (1) Excluding naphtha trading operations.

17 GAZPROM AND SIBUR JOINT INVESTMENT PROJECT ON CONSTRUCTION OF GAS PROCESSING AND CHEMICAL HUB IN AMUR REGION Products: methane, ethane, propane, butane, pentanehexane fraction EASTERN SIBERIA Gas processing capacity 48 bcm (1) Helium production capacity 60 mcm (2) WESTERN SIBERIA Chayandinskoye Kovyktinskoye 2 4 Irkutsk Power of Siberia Gas Pipeline Amur GPP (Gazprom) Skovorodino Svobodny Blagoveshchensk Amur Chemical Plant (SIBUR) 17 (1) Billion cubic metres. (2) Million cubic metres.

18 1. Business Description: Additional Details 2. FY 2015 Operational and Financial Results 3. Exposure to Oil Prices & FX, Market Prices 4. Investment Programme Results 5. Yugragazpererabotka Transaction 18

19 KEY HIGHLIGHTS External Environment Collapsed prices for oil (-47.3% y-o-y in USD terms) and majority of derivative products (incl. LPG and naphtha) Negative dynamics in international market prices for majority of petrochemical products Substantial RR depreciation against USD and EUR RR on average lost 37.0% and 25.0% y-o-y of its value relative to USD and EUR, respectively 3.7% (1) y-o-y GDP decline in Russia; decelerating GDP growth in China (6.9% y-o-y); resumed growth in EU GDP (1.8% y-o-y) and sustained growth in US GDP (2.4% y-o-y) Accelerating inflation in Russia (CPI of 15.9% y-o-y and PPI of 10.6% y-o-y in 2015) Indexation of railway tariffs in Russia 10% tariff indexation by FTS (1) effective January % increase in tariffs by the Russian Railways for LPG deliveries to export markets effective August % increase in tariffs by the Russian Railways for export deliveries for all types of products effective January 2015 SIBUR Key Developments China Petrochemical Corporation ( Sinopec Group ) acquired 10% in SIBUR (December 2015) SIBUR sold Ust-Luga terminal to a consortium comprising RDIF and international investors; access to the terminal secured with long-term transshipment contract (November 2015); Avg. capacity utilisation rate of PP production site in Tobolsk up to 76% in 2015 from 53% in 2014 Expansion and modernisation of Vyngapurovskiy GPP, expansion to 4.2 from 2.8 bcmpa of APG (March 2016) Gazprom Neft and SIBUR commissioned Yuzhno-Priobskiy GPP with processing capacity of 900 mcmpa of APG (September 2015) External ZapSibNeftekhim (ZapSib-2) funding secured: USD 1.96 bln from the NWF (2) and RDIF EUR 2.1 bln Hermes and Coface ECA-backed financing CapEx budget for 2016 expected at RR bln; to be reviewed by the BoD during the year SIBUR placed RR 10 bln bonds with 10.5% pa coupon rate, tenor of 10 years and put option in 5 years (March 2016) 19 (1) Preliminary data. (2) National Wealth Fund.

20 FY 2015 KEY OPERATIONAL AND FINANCIAL HIGHLIGHTS APG processing volumes increased by 3.0% to 21.5 bcm Raw NGL fractionation volumes increased by 23.1% to 7.8 mt (1) Operational Results LPG production increased by 27.1% to 6.5 mt (1) Petchem production increased by 13.0% to 6.9 mt PP production increased by 30.6% to 516 kt Petchem sales volumes increased by 15.2% to 2.6 mt Revenue reached RR bln, increasing by 18.9% (2) Financial Results EBITDA reached RR bln, increasing by 32.0%, EBITDA margin up to 35.7% from 32.2% (3) Petchem EBITDA increased 2.8x, petchem EBITDA margin up to 31.4% from 14.6% Net cash from operating activities totaled RR 119 bln Net Cash used in investing activities totaled RR 122 bln CapEx totaled RR 84.4 bln (4), ZapSib-2 financing totaled RR 43.2 bln Net Debt to EBITDA at 2.10x as of 31 Dec 15 vs. 1.74x as of 31 Dec 14 (1) Including volumes under processing arrangements. (2) Revenue for 2014 adjusted for naphtha trading operations. Revenue including naphtha trading operations in 2014 increased by 5.2%. (3) Adjusted for estimated value of naphtha trading operations via Ust-Luga, ceased in (4) Includes purchase of property, plant and equipment, intangible assets and other non-current assets. 20

21 DOMESTIC MARKET CONSUMPTION Change in Domestic Consumption, % Import Substitution, kt +10.8% PP (0.6%) LDPE (3.2) (7.9%) PET (46.8) +13.9% MEG (17.0%) EPS (25.0) Imports replaced Δ domestic consumption Additional room for local supply 21 Source: (1) Market Report, Kortes, Alliance analytics, Customs statistics.

22 MACRO ENVIRONMENT Russian GDP Growth (1) Consumer Price Index (y-o-y) (1) Producer Price Index (y-o-y) (1) 0.6% (3.7%) (2) 11.4% 15.9% 5.8% 10.6% Average Oil Price (Brent) USD per bbl 99.4 (47.3%) 52.5 Average Exchange Rate (3) RR / USD +58.7% EOP Exchange Rate (3) RR / USD +29.5% % Dec'13 31 Dec'14 31 Dec'15 22 Source: (1) Russian Federal State Statistics Service (2) Preliminary Data (3) CBR

23 PRICING ENVIRONMENT (1) Energy Products 000 USD per tonne (avg. for the period) 000 USD per thousand cubic metres of natural gas (avg. for the period) Basic Polymers 000 USD per tonne (avg. for the period) (32.3%) 1.4 (34.6%) 0.06 (44.8%) (47.3%) (49.0%) (51.3%) (26.5%) Brent Naphtha LPG CIF ARA (large) MTBE PP LDPE LPG DAF Brest Natural gas (RHS) Synthetic Rubbers Plastics & Organic Synthesis 000 USD per tonne (avg. for the period) 000 USD per tonne (avg. for the period) (20.7%) (27.1%) (41.6%) Natural rubber Butadiene Styrene (24.6%) (30.0%) (33.1%) (15.8%) (23.7%) 2-ethylhexanol Expandable polystyrene MEG Butyl acrylate PET 23 Source: Argus, Platts, Bloomberg, ICIS, Chemease, Malaysian Rubber Board, Federal Tariff Service of Russian Federation (1) For detailed market data statistics please refer to Appendix. Prices quoted in EUR or RR are converted to USD at average FX rates for the respective periods.

24 PRICING ENVIRONMENT IN RR TERMS (1) 000 RR per tonne (avg. for the period) 000 RR per thousand cubic metres of natural gas (avg. for the period) Energy Products +7.4% +3.8% (12.4%) (16.3%) (19.2%) (22.7%) Basic Polymers 000 RR per tonne (avg. for the period) % +16.6% 10.0 Brent Naphtha LPG CIF ARA (large) MTBE LPG DAF Brest Natural gas (RHS) PP LDPE Synthetic Rubbers Plastics & Organic Synthesis 000 RR per tonne (avg. for the period) 000 RR per tonne (avg. for the period) % +15.6% (7.4%) % +11.1% +6.1% +33.6% +21.0% 20.0 Natural rubber Butadiene Styrene ethylhexanol Expandable polystyrene MEG Butyl acrylate PET 24 Source: Argus, Platts, Bloomberg, ICIS, Chemease, Malaysian Rubber Board, Federal Tariff Service of Russian Federation (1) For detailed market data statistics please refer to Appendix. Prices quoted in EUR or RR are converted to USD at average FX rates for the respective periods.

25 EBITDA DYNAMICS AND STRUCTURE EBITDA Dynamics EBITDA and EBITDA Margin by Segment Increase in EBITDA by 32.0% y-o-y to RR bln on a threefold increase in Petchem segment EBITDA due to RR bln 35.7% (i) lower feedstock costs for petchem production on the back of declining prices for energy products, and 32.2% (1) (ii) ramp up of PP production in Tobolsk despite lower F&E EBITDA on negative dynamics of the international energy products prices 41.8% (1) 37.1% % RR bln % (9.2) % F&E Petchem (6.4) (2.4) Unallocated Total EBITDA EBITDA 2014 F&E Petchem Unallocated EBITDA x% EBITDA margin 25 (1) Adjusted for estimated value of naphtha trading operations via Ust-Luga, ceased in 2015.

26 USD Equivalents (illustrative) Russian Roubles SIBUR FINANCIAL SUMMARY (1) Revenue Net Operating Expenses (2) EBITDA Operating Cash Flow Investing Cash Flow (3) RR bln RR bln RR bln RR bln RR bln +5.2% % (3.3%) +13.2% % % % Revenue Net Operating Expenses (2) EBITDA Operating Cash Flow Investing Cash Flow (3) USD bln 9.4 (33.7%) (25.2%) 6.2 USD bln USD bln USD bln USD bln (46.6%) (38.8%) 4.5 (16.8%) (17.6%) (21.2%) 2.0 Naphtha trading operations via Ust-Luga Payments for Yugragazpererabotka acquisition 26 (1) Values in USD estimated based on average RR/USD rate of and in 2015 and 2014, respectively. (2) Operating expenses before equity-settled share-based payment plans. (3) Includes CapEx and M&A.

27 REVENUE STRUCTURE AND DYNAMICS Total Revenue RR bln +5.2% % Energy Products RR bln (14.1%) % Petrochemical Products RR bln +32.7% Naphtha trading operations via Ust-Luga Synthetic rubbers Revenue Split by Product Intermediates and other chemicals Processing services and other sales 2015 Revenue By region Split by Region Asia CIS Other Basic polymers 13 % 22 LPG Europe 30 % Russia Plastics and organic synthesis products MTBE, raw NGL and other fuels 11 Naphtha Natural gas 56 27

28 KEY ENERGY PRODUCTS: SALES VOLUMES AND PRICE DYNAMICS LPG Natural Gas Sales volumes, 000 tonnes Change in effective avg. selling price, % Sales volumes, mln cubic metres Change in effective avg. selling price, % 3,468 (12.7%) +23.1% 4,268 16, % +10.1% 17,625 Naphtha Sales volumes, 000 tonnes Change in effective avg. selling price, % Trading operations via Ust-Luga (11.3%) (48.5%) 2, % 1,229 Key Factors LPG: Higher sales volumes on organic growth in production following the launch of integrated feedstock processing and transportation infrastructure Lower selling prices largely attributable to substantial decrease in market prices across all products (in USD terms) partially compensated by substantial RR depreciation, expanded sales to the European markets and zeroed export duties Natural gas: Higher sales volumes due to consolidation of 100% production at GPPs of Yugragazpererabotka following its acquisition Higher selling price on average 3.7% y-o-y indexation of regulated prices Naphtha: Lower sales volumes on termination of trading activities via Ust-Luga in 2015 Lower selling prices attributable to decrease in market prices (in USD terms), partially compensated by substantial RR depreciation and lower export duties 28

29 PETROCHEMICALS: SALES VOLUMES AND PRICE DYNAMICS Plastics & Organic Synthesis Basic Polymers Key Factors Sales volumes, 000 tonnes Change in effective avg. selling price, % % % +17.0% Synthetic Rubbers Sales volumes, 000 tonnes Change in effective avg. selling price, % +10.3% +14.2% 411 Sales volumes, 000 tonnes Change in effective avg. selling price, % Intermediates & Other % Sales volumes, 000 tonnes Change in effective avg. selling price, % +3.9% +22.4% 550 Decline in international market prices for majority of products mitigated by substantial RR depreciation Plastics & organic synthesis: Higher sales volumes largely due to higher PET and BOPP-film production following capacity expansions higher glycols production inter alia as a result of lengthy shutdowns in Kstovo and Dzerzhinsk in 2014 Basic polymers: Higher sales volumes due to growth in PP production thanks to ramp-up of PP production in Tobolsk and partially offset by higher internal use for BOPP production Synthetic rubbers: Increase in sales volumes primarily due to higher production volumes on low base of 2014 due to weak market environment and completed thermoplastic elastomers homologation Intermediates & other chemicals: Increase in sales volumes due to higher ethylene sales to our JV RusVinyl commissioned in September 2014 propylene and ethylene oxide production following capacity expansions as compared to low base of 2014 due to lengthy shutdowns in Kstovo and Dzerzhinsk 29

30 REVENUE DYNAMICS BY PRODUCT GROUP LPG Natural gas Naphtha MTBE Raw NGL RR bln % 82.9 RR bln +13.1% RR bln RR bln RR bln 68.9 (54.3%) +11.8% +15.2% (62.2%) 3.7 Plastics & Organic Synthesis Basic Polymers Synthetic Rubbers Intermediates & Other Other Revenue RR bln RR bln RR bln RR bln RR bln +39.3% % % +27.3% % Trading operations via Ust-Luga 30

31 NET OPERATING EXPENSES STRUCTURE AND DYNAMICS Y-o-Y dynamics RR bln 79% 73% (3.3%) % Net Operating Expenses (1) Structure Other Services from 3 rd parties Repairs & maintenance Goods for resale Energy & 4 utilities 10 % Feedstock & materials RR bln Feedstock & Materials Transportation & Rent (2) 22% +7.5% 22% RR bln Transportation & logistics Rent expenses 14% % 18% 66.8 Decrease in goods for resale purchases on the termination of trading activities via the Ust-Luga transshipment facility in 2015 Higher transportation & rent expenses due to RR depreciation, the railway tariff indexation and higher transported volumes Higher feedstock & materials on weaker Russian rouble and higher purchasing volumes of hydrocarbon feedstock and other feedstock & materials compensated by lower expenses related to PP purchases Higher D&A expenses due to commissioning of new large-scale facilities (raw NGL pipeline, the expansion of the cracking capacity in Kstovo, second GFU) amortisation of intangible assets Increase in staff costs expenses due to changes in the perimeter Staff costs Key Factors increase in the headcount of NIPIGAZ, a contractor at the Amur GPP design and construction project of Gazprom Depreciation & amortisation 24 Transportation & rent RR bln Energy & Utilities 9% 7% 31.2 (9.0%) 28.4 Depreciation & Amortisation RR bln 7% 8% +19.7% RR bln RR bln 27.2 Staff Costs 8% 8% +12.9% 30.7 Goods for Resale 13% (75.2%) 3% % (1) Operating expenses before equity-settled share-based payment plans. (2) Transportation, logistics and rent. x% % of revenue Naphtha trading operations via Ust-Luga

32 CASH FLOW STATEMENT HIGHLIGHTS Key Developments Net cash from operating activities increased by 30.8% y-o-y on higher EBITDA lower income tax paid partially offset by negative impact from WC changes on higher trade and other receivables Net cash used in investing activities increased by 25.0% y-o-y on final tranche payment for the acquisition of Rosneft s 49% stake in Yugragazpererabotka increase in CapEx by 17.9% y-o-y partially compensated by proceeds from divestment of transshipment facility in Ust-Luga Net cash received from financing activities attributable to new borrowings for ZapSib-2 financing funding the final tranche for the acquisition of a 49% stake in Yugragazpererabotka Key Highlights Year ended 31 December Change % RR mln, except as stated Net cash from operating activities 119,078 91, % Operating cash flows before WC changes 128, , % Changes in working capital (5,509) 1,789 n/m Income tax paid (4,305) (16,277) (73.6%) Net cash used in investing activities, including (121,741) (97,370) 25.0% Purchase of PPE, intangible and non-current assets (84,391) (71,550) 17.9% Acquisition of interest in subsidiaries, net of cash acquired Proceeds from disposal of subsidiaries, net of cash disposed (61,726) (20,666) 198.7% 21, n/m Net cash from financing activities, including 144,802 24, % Net proceeds from debt 186,014 34, % Dividends (18,125) (14,073) 28.8% Interest paid (14,867) (5,710) 160.4% Payment of bank fees (9,994) (697) n/m Effect of exchange rate changes on cash and cash equivalents 2,277 1, % Net increase in cash and cash equivalents 144,416 19, % 32

33 DEBT STRUCTURE AND MATURITY PROFILE RR bln (3) Key Highlights Net debt increased by 59.6% mainly due to: new borrowings to fund the acquisition of a 49% stake in Yugragazpererabotka substantial RR depreciation Net leverage increased to 2.1x from 1.74x (1.76x from 1.19x in USD terms) Total debt increased 2.2x y-o-y primarily due to funding for ZapSib-2 provided by the NWF (USD 1.75 bln) and RDIF and consortium of international investors (USD 210 mln) in the end of 2015 Borrowings raised from the NWF resulted in a respective increase in cash balances As of 31 December 2015, all of the debt was unsecured Debt Maturity Profile (2) Mar After 2025 USD RR EUR Key Figures RR bln, except as stated 31 Dec Dec 2014 Change, % Total debt % Cash & cash equivalents % Net debt % WA loan tenor (years) WA Conventional debt WA ZS-2 related debt Available credit lines % Debt / EBITDA 3.37x 2.01x Net debt / EBITDA, including: 2.10x 1.74x Conventional net debt 1.82x 1.68x ZS-2 related net debt 0.28x n/m Net debt / EBITDA (in $) 1.76x 1.19x EBITDA / Interest (1) 9x 16x RR bln, except as stated 31 Mar 2016 (2) 31 Dec 2015 Change, % Total debt (13.0%) Cash & cash equivalents (45.0%) Net debt % Maturity profile Short-term (41.3%) Long-term (9.7%) Currency split USD (19.8%) RR (5.6%) EUR % Credit lines (3.5%) Committed (3.4%) Uncommitted (3.7%) 33 (1) Interest represents accrued interest, i.e. includes interest expense and capitalised interest. (2) Unaudited data. Loans denominated in USD and EUR are converted into RR at RR/USD and RR/EUR FX rates as of 31 March (3) Debt maturing during Q2-Q

34 1. Business Description: Additional Details 2. FY 2015 Operational and Financial Results 3. Exposure to Oil Prices & FX, Market Prices 4. Investment Programme Results 5. Yugragazpererabotka Transaction 34

35 EXPOSURE TO OIL PRICES AND FX ILLUSTRATIVE Revenue Categories Correlation Currency Currency Correlation Revenue Net OpEx with Oil Nature Nature with Oil Net OpEx Categories Other Intermediates & other chemicals 380 6% 7% 2015 RR bln Synthetic rubbers 9% Basic polymers Plastics & organic synthesis MTBE and other fuels Naphtha Natural gas 13% 17% 7% 8% 11% 276 4% 3% 4% 10% 11% 11% 24% Other Repairs & maintenance Goods for resale Energy & utilities Staff costs D&A Transportation, logistics & rent LPG negative impact of lower oil prices somewhat compensated by lower export duty and RR depreciation 22% 32% Feedstock & materials APG: indexed in line with FTS, some contracts account for changes in NGLs netbacks NGLs priced at netbacks US dollar Russian rouble 35 (1) Operating expenses before equity-settled share-based payment plans.

36 LOWER EXPORT DUTIES AND RR DEPRECIATION SUPPORT ENERGY PRODUCT REVENUES ON DECREASING OIL RR / USD oil price negative correlation USD per bbl Oil price and export duties impact on product price USD per tonne LPG CIF ARA case USD per bbl 1, , RR/USD (LHS) Brent (RHS) LPG CIF ARA (large) LPG price net of duty Brent (RHS) Oil price and export duties impact on product price Oil price and export duties impact on product price USD per tonne LPG DAF Brest case USD per bbl USD per tonne Naphtha CIF ARA case USD per bbl 1, , , , LPG DAF Brest LPG price net of duty Brent (RHS) Naphtha CIF NWE Naphtha price net of duty Brent (RHS) 36

37 MARKET PRICES VS OIL PRICE Energy Products Basic Polymers Rebased to 100 Rebased to % 120% 100% 100% 80% 80% 60% 60% 40% 40% 20% 0% Brent LPG CIF ARA (large) MTBE Naphtha CIF NWE LPG DAF Brest Natural gas 20% 0% LDPE CFR China film, Spot PP rafia China Main Port, Spot Brent Rebased to % 100% 80% 60% Synthetic Rubbers Rebased to % 100% 80% 60% Plastics & Organic Synthesis Products 40% 20% 0% Natural Rubber Butadiene Styrene Brent 40% 20% 0% Polystyrene, EPS block FOB Korea MEG Contract, FD NWE T2 2-ethylhexanol Spot, FD NWE Butyl acrylate Spot, FD NWE PET FOB China, Spot Brent 37 Source: Argus, Platts, Bloomberg, ICIS, Malaysian Rubber Board, Chemease, Federal Tariff Service of Russian Federation

38 MARKET PRICES PRODUCT QUOTE SOURCE ENERGY PRODUCTS Oil Brent (USD per bbl) Bloomberg Naphtha Naphtha CIF NWE Argus LPG LPG CIF ARA (large) LPG DAF Brest MTBE MTBE FOB Rotterdam / FOB ARA Platts Natural gas Natural gas wholesale price (for population) Federal Tariff Service of Russian Federation (1) Argus Argus BASIC POLYMERS LDPE LDPE CFR China film, Spot ICIS PP PP rafia China Main Port, Spot ICIS SYNTHETIC RUBBERS Natural rubber NR SMR 20 Malaysian Rubber Board Butadiene Butadiene Contract, FD NWE ICIS Styrene Styrene Spot, FOB Rotterdam ICIS PLASTICS & ORGANIC SYNTHESIS PRODUCTS PET PET FOB China, Spot ICIS Monoethylene glycol (MEG) MEG Contract, FD NWE T2 ICIS 2-ethylhexanol (alcohol) 2-ethylhexanol Spot, FD NWE ICIS Butyl acrylate Butyl acrylate Spot, FD NWE ICIS Expandable polystyrene Polystyrene, EPS block FOB Korea ICIS 38 (1) Federal Tariff Service, which functions were transferred to the Federal Antimonopoly Service as of 21 July 2015.

39 1. Business Description: Additional Details 2. FY 2015 Operational and Financial Results 3. Exposure to Oil Prices & FX, Market Prices 4. Investment Programme Results 5. Yugragazpererabotka Transaction 39

40 Feedstock processing capacity, Transportation infrastructure Petrochemicals Other TOTAL INVESTMENT PROGRAMME A(1) RR bln (excl. VAT) in 7yrs Transportation infrastructure Feedstock processing capacity Petrochemicals Maintenance, R&D, IT, and other TOTAL ZapSibNeftekhim CapEx RR bln (2) (excl. VAT) investment programme approved by SIBUR BoD for (1) CapEx includes purchase of property, plant and equipment, as well as purchase of intangible assets and other non-current assets. (2) The Board of Directors will review the budget later in the year and the number may be revised subject to macroeconomic and market environment.

41 STRATEGY IMPLEMENTATION RESULTS: EXTENSIVE TRANSPORTATION INFRASTRUCTURE SUPPORTING EFFICIENT FEEDSTOCK SUPPLIES Old Raw NGL Pipeline Total length: 1,168 km Total throughput capacity: up to 4.8 mtpa Two detached sections: Northern: connection between Gubkinskiy GPP (1), Muravlenkovskiy GPP, Vyngapurovskiy GPP and Noyabrsk loading rack Southern: connection between Belozerniy GPP, Nizhnevartovskiy GPP, Yuzhno-Balykskiy GPP and Tobolsk GFU Newly Constructed Raw NGL Pipeline New 1,100 km raw NGL pipeline between Purovskiy GCP (2), Noyabrsk loading rack, Yuzhno-Balykskiy GPP (near Pyt-Yakh) and Tobolsk GFU Throughput capacity: c.4 mtpa (Purovskiy GCP Noyabrsk loading rack) c.5.5 mtpa (Noyabrsk loading rack Yuzhno-Balykskiy GPP) c.8.0 mtpa (Yuzhno-Balykskiy GPP Tobolsk GFU) CapEx: ~RR 63 bln (excl. VAT) YAMAL-NENETS AUTONOMOUS AREA Gubkinskiy 2005 GPP 2011 Muravlenkovskiy 1989 KHANTY-MANSI GPP 2009 AUTONOMOUS AREA 2009 Tobolsk-Neftekhim Tobolsk-Polymer Nyagan GPP Yuzhno-Balykskiy GPP TYUMEN REGION TOBOLSK NOYABRSK 1981 SIBUR old raw NGL pipeline SIBUR newly constructed raw NGL pipeline Commissioning date Belozerniy GPP Purovsky GCP (NOVATEK) PUROVSK Vyngapurovskiy GPP PYT-YAKH Nizhnevartovskiy 2001 GPP (1) Gas processing plant. (2) Gas condensate plant.

42 STRATEGY IMPLEMENTATION RESULTS: NEW GAS FRACTIONATION UNIT (GFU) AT TOBOLSK-NEFTEKHIM Key Existing Facilities Gas fractionation unit (GFU-1): Processing capacity of 3.8 mtpa of raw NGL Commissioned in 1984 Latest modernisation in 2011 Feedstock supplies via Purovsk Pyt-Yakh Tobolsk raw NGL pipeline, inter alia from Yuzhno-Balykskiy GPP MTBE production unit: Capacity of 150 ktpa Commissioned in 1997 Latest modernisation in 2011 Production of intermediate chemicals: Butadiene production capacity of 207 ktpa Isobutylene production capacity of 83 ktpa Isobutane-isobutylene fraction (IIF) production capacity of 195 ktpa, latest modernisation in 2013 Raw NGL 6.6 mtpa GFU Isobutane Butane Production Scheme Methanol Dehydrogenation Dehydrogenation IIF 195 Isobutylene 83 MTBE Production Butadiene 207 LPG, naphtha MTBE 150 Launches in 2014 Second GFU (GFU-2): Expansion of raw NGL fractionation capacity to 6.6 mtpa Support growing volumes of raw NGL supplies through the new pipeline CapEx: ~ RR 14 bln (excl. VAT) Launched in Q1 14 Propane purification facility Railway infrastructure expansion 42

43 STRATEGY IMPLEMENTATION RESULTS: TOBOLSK-POLYMER POLYPROPYLENE PLANT Project Description Design capacity: Propane dehydrogenation: 510,000 tonnes p.a. of propylene Polypropylene (PP) production: 500,000 tonnes p.a. Leading global players involved: Licensors: UOP, INEOS EPC contactors: Tecnimont, LINDE CapEx: ~RR 64 bln (excl. VAT) Strategic Importance for SIBUR Advantageous feedstock access Growing supplies of raw NGL virtually stranded in the region Efficient feedstock delivery via own raw NGL pipeline Monetisation of stranded feedstock through petrochemicals production Infrastructural synergies Infrastructure shared with existing production site (Tobolsk-Neftekhim) Close proximity to Tobolsk GFU SIBUR`s main feedstock processing facility Market potential PP demand growth in Russia and CIS; import substitution Access to key export markets: Europe and Asia Production Scheme Strategic Importance for Russia GFU Raw NGL Propane 6.6 mtpa 612 ktpa Dehydrogenation Propylene 510 ktpa TOBOLSK-POLYMER PP-500 Contribution to the development of Russian economy, inter alia through production of high-quality materials needed to upgrade and modernise the country s infrastructure Contribution to the development of the region`s economy, including creation of approximately 1,000 new jobs (incl. vendors and contractors) Tobolsk-Polymer is on the government s top-priority project list in the region Part of the government s APG utilisation programme 43

44 1. Business Description: Additional Details 2. FY 2015 Operational and Financial Results 3. Exposure to Oil Prices & FX, Market Prices 4. Investment Programme Results 5. Yugragazpererabotka Transaction 44

45 SIBUR AND ROSNEFT NEW FRAMEWORK FOR LONG-TERM COOPERATION New Contracts Increase in guaranteed APG supplies to 10 bcm p.a. from 6.6 bcm p.a. Increase in guaranteed sales of natural gas (1) Tenors for APG supplies and natural gas sales extended to 2032 (inclusive) from 2026 Rosneft s commitment to NGLs content in APG supplied to Yugragazpererabotka Acquisition of Control in Yugragazpererabotka Acquisition of a 49% interest in Yugragazpererabotka from Rosneft Group completed on 6 March 2014 Deal value of USD bln in cash USD bln paid in March 2014 USD 0.5 bln paid in January 2015 USD 0.5 bln paid in March-April 2015 Strategic Importance for SIBUR SIBUR gains full control over 3 GPPs with processing capacity of 13.4 bcm p.a. and related infrastructure Cementing long-term access to feedstock Operational and strategic synergies Impact on SIBUR Financials Consolidation as a wholly owned subsidiary from 6 March 2014 Overall improvement in SIBUR results Non-cash gain on equity interest (to be excluded from dividend base) 45 (1) Natural gas produced at Nizhnevartovskiy GPP and Belozerniy GPP.

46 YUGRAGAZPERERABOTKA TRANSACTION IMPLICATIONS Pre Transaction Post Transaction Impact on SIBUR APG SIBUR purchases 51% of volumes supplied to Yugragazpererabotka GPPs, primarily from Rosneft Rosneft is responsible for the remaining 49% of volumes SIBUR purchases 100% of volumes supplied to Yugragazpererabotka GPPs, primarily from Rosneft Rosneft sells all volumes to SIBUR APG purchasing volumes and costs Raw NGL SIBUR obtains 51%, purchases 49% from Rosneft Rosneft obtains 49%, sells 49% to SIBUR SIBUR retains 100% Raw NGL production Raw NGL purchasing volumes and costs Natural Gas SIBUR obtains 51%, sells 51% to Rosneft Rosneft obtains 49%, purchases 51% from SIBUR SIBUR obtains 100%, sells all volumes from Nizhnevartovskiy and Belozerniy GPPs to Rosneft Natural gas production Sales volumes and revenue from sales of natural gas P&L (1) SIBUR pays to Yugragazpererabotka a processing fee reflected in OpEx as 3 rd party processing 100% OpEx consolidated OpEx (other than feedstock) Processing fee Non-cash gain on equity interest (2) CF BS SIBUR finances its share of Yugragazpererabotka CapEx via loans issued / investments in JVs SIBUR s 51% interest is accounted for as Investment in JV 100% CapEx consolidated CapEx Loans issued / investments in JVs 100% consolidated PP&E, goodwill, other non-current assets Accounts payable, total debt Outstanding amount fully paid in H (1) Items other than revenue and feedstock costs. (2) For the purpose of dividends calculation net profit will be adjusted for this charge.

47 FINANCIAL CALENDAR 2016 Event Date FY 2015 Operational and Financial Results 7 April 2016 Q Limited Operational Update June 2016 H Operational and Financial Results Early September M 2016 Limited Operational Update December

48 INVESTOR RELATIONS CONTACTS Phone: +7 (495) (*39-47) 48