Q6 IFRS CONSOLIDATED FINANCIAL RESULTS AUGUST, 6
Alexander Ivannikov Head of the Department Q6 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. 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. Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 3
SUMMARY OF Q6 IFRS FINANCIAL RESULTS RR bn q5 vs q6 (4%) +5%,783,737 (4%) (3%) 444 (5%) 36 3 4 Total net sales Adj. EBITDA Net profit Operating CF Free CF Net debt 674 (6%) 37 EBITDA adjusted by changes in impairment provisions 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 3, 5 5 IFRS CONSOLIDATED FINANCIAL RESULTS 4
GAZPROM VS PEERS Top-5 by FCF 5 $ mm 4 3 3,83 Gazprom Sinopec PetroChina Rosneft PTT 3 Top-5 by net income 5 4 3 $ mm 4,857 Gazprom Exxon Total Novatek Sinopec Source: Companies reports, Bloomberg, Factset Free Cash Flow = Net Cash from operating activities Cash CAPEX Attributed to shareholders 3 Adjusted for prepayments and operations with securities Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 5
HYDROCARBON PRODUCTION, ELECTRICITY AND HEAT GENERATION Natural gas production Gas condensate production Crude oil production bcm mln ton mln ton (3%) +% +6% 6 5 5 5 6,3 89, 84,5 9,,9 4 4, 3,7 3,5 4, 4, 5 8,8 8,9 9, 9, 9,3 Electricity generation Heat generation bn kwh mln Gcal (%) +5% 6 4 4, 3,5 9,7 4,8 4,4 8 6 4 46,4 7,8 8,7 39, 48,9. Includes Russian generating companies: Mosenergo, OGK-, TGK-, MIPC Calculations may diverge due to rounding. Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 6
GAS SALES Russia Europe & OC FSU bcm 4 8 6 4 RR/ mcm 3,568 3,493 3,79 3,779 3,873 4 3 8 7 75 4 3 bcm 75 5 5 USD/ mcm 84 5 3 4 9 88 59 58 39 4 45 bcm 4 3 USD/ mcm 4 3 9 3 73 8 57 3 3 8 6 VOLUMES AVERAGE PRICE IN RUSSIA VOLUMES AVERAGE PRICE IN EUROPE & OC VOLUMES AVERAGE PRICE IN FSU RR bn 3 5 5 5 +% +% (5%) RR bn 87 9 67 8 735 663 6 543 484 39 44 3 4 RR bn 5 56 38 5 7 74 6 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: including LNG sales 3 VAT is not charged on sales 4 Net of custom duties and excise tax on gas exports Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 7
OIL AND ENERGY BUSINESS Net Sales Q5 Q6 66% 68% CRUDE OIL AND GAS CONDENSATE; REFINED PRODUCTS GAS BUSINESS AND OTHER REVENUES ELECTRIC AND HEAT ENERGY 6% 8% 4% 8% Crude Oil and Gas Condensate; Refined Products (3%) RR bln 5 468 467 456 44 43 4 3 RR bln 8 5 9 6 3 Electric and heat energy +% 48 33 33 85 74 Calculations may diverge due to rounding. Net of value added tax (VAT), excise tax and custom duties. Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 8
CAPITAL EXPENDITURES Cash CapEx Group s CapEx breakdown RR bn 6,397 -%,6 +3%,64 9% 4% 6% 44% 8 4 444 -% 437 7% 3 4 5 q5 q6 % USD bn 5 4 3 43.9-4% 33. -9% 7. TRANSPORT PRODUCTION OF NATURAL GAS PRODUCTION OF CRUDE OIL AND GAS CONDENSATE REFINING 7. -8% 5.9 ELECTRIC AND HEAT ENERGY 3 4 5 q5 q6 OTHER CAPEX CapEx breakdown as provided in Management Report Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 9
SUSTAINABLE FREE CASH FLOW GENERATION Free Cash Flow (6%) 35 3 5 5 5-5 - RR bn 5 37 6 9-5 Gazprom self funding % 5% 57% 8% 34% 54% % 5% 85% % Free Cash Flow = Net Cash from operating activities Cash CAPEX Net Cash from operating activities /Cash CAPEX Q6 IFRS CONSOLIDATED FINANCIAL RESULTS
KEY DEBT METRICS Total and Net Debt Debt maturity profile 5 4 RUB bn,9, x,,9 6% 33% 3% 5% % 3,7,5,6,38,359,565,6 33% 36% 36% 4% 45% 689 46,83,65,783,75,3 3 4 5 q6 NET DEBT CASH&CASH EQUIVALENTS NET DEBT/ADJ.EBITDA LTM,3, 9% 3% 5% 4% 4% % 8% 7% 9% % 3 4 5 q6 LESS THAN YEAR - YEARS -5 YEARS MORE THAN 5 YEARS Cost of debt financing 8 6 4 % 8 9 3 4 5 q6 SOURCE: BLOOMBERG, COMPANY DATA WEIGHTED AVERAGE FIXED INTEREST RATE WEIGHTED AVERAGE FLOATING INTEREST RATE WEIGHTED AVERAGE INTEREST RATE Calculated using dollar values of Net debt and EBITDA Excluding promissory notes Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 6.36% 5.65% 4.% 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 5 S&P MOODY'S FITCH DAGONG INVESTMENT GRADE 6
SUCCESSFUL PERFORMANCE IN DEBT CAPITAL MARKETS Transaction date Amount Coupon Maturity Achievements March 6 March 6 October 5 CHF5mm 3.375%.5 years,mm EURIBOR +3.5% 5 years,mm 4.65% 3 years Public international debt offering under EMTN programme, lead managers - Deutsche Bank AG Zurich branch, Gazprombank (Switzerland) Ltd and UBS AG 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 Public international debt offering under EMTN programme, lead managers - Banca IMI S.p.A., J.P. Morgan, UniCredit Bank, placement without new issue premium August 5 $,5mm LIBOR +3.5% 5 years Syndicated loan with China Construction Bank Corporation as bank agent July 5 3mm EURIBOR +3.6% 4 years Loan from UniCredit Bank Austria AG June 5 5mm EURIBOR + 3.6% 4 years Loan from Intesa Sanpaolo S.p.A. bank April 5 $5mm LIBOR + 3.5% 3 years Syndicated loan with JP Morgan as bank agent Asian banks participated uary 5 35mm EURIBOR +.75%.5 years Recent transactions by PJSC Gazprom Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 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
ADDITIONAL INFORMATION Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 3
RUSSIAN NATURAL GAS BALANCE Bcm Q5 Q6 Natural gas resources 95.7 3. Domestic gas production 69.7 69.6 Other sources including Central Asian and Azerbaijani gas 5.8 5.7 Gas withdrawn from underground storage in Russia, Latvia and Europe 9. 6.7 Decrease in the amount of gas within the gas transportation system.. Natural gas distribution 95.7 3. Domestic consumption 43. 43. including needs of the gas transportation system and underground storages 8.5 8.9 Gas pumped into underground storages.. Gas for LNG production 4. 3.5 Foreign supplies 35.5 45. FSU supplies.9.3 Increase in the amount of gas within the gas transportation system.. Source: Company Operating Data 4 Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 4
THANK YOU FOR ATTENTION! Q6 IFRS CONSOLIDATED FINANCIAL RESULTS 5