Q5 IFRS CONSOLIDATED FINANCIAL RESULTS SEPTEMBER, 5
Alexander Ivannikov Head of the Department Q5 IFRS CONSOLIDATED FINANCIAL RESULTS
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. 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. Q5 IFRS CONSOLIDATED FINANCIAL RESULTS 3
SUMMARY OF FINANCIAL RESULTS Q5 vs. Q4 Gazprom Group results Q 5 YoY Total net sales,65 bln RR -4% Adj. EBITDA 35 bln RR +5% Net Profit 94 bln RR +9% Operating cash flow 89 bln RR -3% Free cash flow -5 bln RR Net debt,45 bln RR -% Net debt/adj.ebitda LTM 3.6x Profit for the period attributed to owners of PJSC Gazprom Compared to net debt as of December 3, 4 3 Calculated using dollar values of Net debt and EBITDA Q5 IFRS CONSOLIDATED FINANCIAL RESULTS 4
HYDROCARBON PRODUCTION, ELECTRICITY AND HEAT GENERATION Natural gas production Gas condensate production Crude oil production bcm mln ton mln ton (4%) +3% +% (3%) 6 (%) 5 +% 5 5 3.7 85. 3.6 6.3 89. 4 3.6 3. 3.8 4. 3.7 5 8.7 9. 9. 8.8 8.9 Electricity generation Heat generation bn kwh (3%) mln Gcal (%) 6 4 33.5 3. (3%) 43.9 4. 3.5 8 6 4 7.8 9.3-6% 44.4 46.4 7.8 Including Russian generating companies: Mosenergo, OGK-, TGK-, MIPC Calculations may diverge due to rounding. Q5 IFRS CONSOLIDATED FINANCIAL RESULTS 5
GAS SALES Russia Europe & OC FSU bcm 4 8 6 4 RR/ mcm 347 344 3599 3568 3493 4 3 75 8 4 33 4 bcm 9 6 3 USD/ mcm 358 35 34 84 5 4 3 39 37 37 39 4 bcm 4 3 USD/ mcm 36 4 4 3 9 3 4 6 3 6 8 VOLUMES AVERAGE PRICE IN RUSSIA VOLUMES AVERAGE PRICE IN EUROPE & OC VOLUMES AVERAGE PRICE IN FSU RR bn 3 5 5 5 (%) +% (46%) RR bn 68 87 6 55 543 399 44 4 4 344 39 RR bn 5 56 36 5 7 74 4 5 NET SALES TO RUSSIA 3,4 3,4 NET SALES TO EUROPE & OC NET SALES TO FSU Calculations may diverge due to rounding. Net of value added tax (VAT) OC - Other countries: include LNG sales 3 VAT is not charged on sales 4 Net of custom duties and excise tax on gas exports to Europe Q5 IFRS CONSOLIDATED FINANCIAL RESULTS 6
OIL AND ENERGY BUSINESS Net Sales Q4 Q5 58% 56% CRUDE OIL AND GAS CONDENSATE; REFINED PRODUCTS GAS BUSINESS AND OTHER REVENUES ELECTRIC AND HEAT ENERGY 36% 6% 37% 7% Crude Oil and Gas Condensate; Refined Products +% RR bln 6 5 468 48 45 44 468 4 3 RR bln 5 9 6 3 Electric and heat energy +% 35 33 84 73 85 Calculations may diverge due to rounding. Net of value added tax (VAT), excise tax and custom duties. Q5 IFRS CONSOLIDATED FINANCIAL RESULTS 7
NET PROFIT INCREASE 5 RR bn 4 3 97.5 5. 33.8 5. 93.8 7.6 Net profit q4 Sales Operating expenses FX Other Net profit q5 Net profit attributable to owners of PJSC Gazprom Excluding FX differences on operating items Including FX differences on operating items Q5 IFRS CONSOLIDATED FINANCIAL RESULTS 8
CAPITAL EXPENDITURES RR bn Gazprom Group s CapEx 5 Priorities 5 5 (5%),545 (4%),475,43 +4% 65 38 3 4 q4 q5 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 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 TRANSPORT PRODUCTION OF NATURAL GAS PRODUCTION OF CRUDE OIL AND GAS CONDENSATE REFINING ELECTRIC AND HEAT ENERGY ALL OTHER SEGMENTS CapEx volumes and breakdown as provided in Management Report Q5 IFRS CONSOLIDATED FINANCIAL RESULTS 9
KEY DEBT METRICS Total and Net Debt Debt maturity profile 35 3 5 5 5 RUB bn.5.7 59 49.5 689,8,7 3.6.6 38 65 5 45 x.8.7.6.5.4.3.. % 6% 33% 3% 8% 38% 33% 36% 36% 34% 7% 9% 3% 5% 8% 4% % 8% 7% % 3 4 6m5 NET DEBT CASH&CASH EQUIVALENTS NET DEBT/ADJ.EBITDA LTM. 3 4 6m5 LESS THAN YEAR - YEARS -5 YEARS MORE THAN 5 YEARS Cost of debt financing 8 6 4 % 8 9 3 4 6m5 SOURCE: BLOOMBERG, COMPANY DATA WEIGHTED AVERAGE FIXED INTEREST RATE WEIGHTED AVERAGE FLOATING INTEREST RATE WEIGHTED AVERAGE INTEREST RATE 6.5% 5.7% 3.3% Gazprom credit ratings Dagong, Moody's S&P, Fitch AAA Aaa AA Aa A+ A A A A- A3 BBB+ Baa BBB Baa BBB- Baa3 BB+ Ba BB Ba BB- Ba3 B+ B 4 5 6 7 8 9 3 4 S&P MOODY'S FITCH DAGONG INVESTMENT GRADE 5 Excluding promissory notes Q5 IFRS CONSOLIDATED FINANCIAL RESULTS
CONTACTS FOR INVESTORS AND ANALYSTS IVAN KHROMUSHIN Head of Division Phone: (7) (495) 79-343 E-mail: I.Khromushin@adm.gazprom.ru Q5 IFRS CONSOLIDATED FINANCIAL RESULTS