bunker cs irkutsk

GAZPROM INVESTOR DAY
GAS BUSINESS
FEBRUARY 2015
HONG KONG, SINGAPORE
AGENDA
PRESENTATION SPEAKERS
Strategy
Upstream
Dmitry Lyugai
Vsevolod Cherepanov
Member of Gazprom Management Committee
Head of the Department
Member of Gazprom Management Committee
Head of the Department
Export
Finance
Alexander Medvedev
Andrey Kruglov
Deputy Chairman of Gazprom Management
Committee
Deputy Chairman of Gazprom Management Committee
Head of the Department
Oil Business
Power Generation
Alexei Yankevich
Denis Fedorov
Member of the Management Board of Gazprom Neft
Deputy CEO for Economics and Finance
of Gazprom Neft
Head of Gazprom Directorate
General Director of Gazprom Energoholding
Project Finance
Oleg Nagovitsyn
General Director of Gazprom Investproject
INVESTOR DAY 2015
HONG KONG, SINGAPORE
2
DISCLAIMER
This presentation has been prepared by OJSC Gazprom and its consolidated subsidiaries (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.
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.
INVESTOR DAY 2015
HONG KONG, SINGAPORE
3
5
STRATEGY
19
UPSTREAM
26
EXPORT
37
FINANCE
INVESTOR DAY 2015
HONG KONG, SINGAPORE
4
STRATEGY
DMITRY LYUGAI
MEMBER OF GAZPROM MANAGEMENT COMMITTEE – HEAD OF THE DEPARTMENT
INVESTOR DAY 2015
HONG KONG, SINGAPORE
5
GAZPROM AT A GLANCE
SHORT OVERVIEW
Gazprom is a Russian global
energy company
History
1906
First commercial gas production from Russian gas field –
“Dagestanskye Ogni” (Derbent city)
Its major business lines are:

Geological exploration
1943
First Russian trunk gas pipeline “Buguruslan-Kuybyshev (Samara)”

Production
1948
Natural gas production department set up at the Ministry of oil industry

Transportation and Storage
1965
USSR Gas Industry Ministry established

Processing and sales of gas, gas
condensate and oil
1973
First Russian gas delivered to Europe

Sales of gas as a vehicle fuel
1989
USSR Gas Industry Ministry restructured into Gazprom State Gas Concern

Generation and marketing of heat and
electric power
1993
ON THE BASIS OF GAZPROM STATE GAS CONCERN RUSSIAN JOINT-STOCK
COMPANY "GAZPROM" (RAO "GAZPROM") WAS ESTABLISHED
WHICH WAS TRANSFORMED IN 1998 INTO OPEN JOINT-STOCK COMPANY
"GAZPROM" (OAO "GAZPROM")
2005
Gazprom acquired “Gazprom neft” (formerly “Sibneft”)
GAZPROM is involved in hydrocarbon
exploration and production projects in more
than 10 foreign countries, incl. Algeria, Bolivia,
Bosnia and Herzegovina, Great Britain,
Hungary, Venezuela, Vietnam, Iraq,
Kyrgyzstan, Romania, Tajikistan, Uzbekistan.
2007-2009 Gazprom entered into the energy business
(consolidated under “Gazprom Energoholding”)
Achievements for 22 years
Gazprom revenue structure1
1993
12
tcm
GAS
PRODUCED
546
mm tons
OIL AND GAS
CONDENSATE
PRODUCED
8.6
tcm
NEW GAS
RESERVES
DISCOVERED
2013
GAS
24%
100%
OIL
7%
69%
33 THOUSAND KM OF
SOURCE: GAZPROM DATA
INVESTOR DAY 2015
HONG KONG, SINGAPORE
POWER
NEW PIPELINES BUILT
1
According to International Financial Reporting Standards (IFRS)
6
GAZPROM IN FIGURES
Gas reserves
#1 WORLD
Oil and gas condensate production
#1 RUSSIA

72%
17%
Gazprom gas reserves
(A+B+C1) – 36 tcm,
incl. onshore – 29 tcm,
offshore – 7 tcm
RUSSIA

9%
Gas production
#1 WORLD
#1 RUSSIA
14%

73%


Gazprom Group gas
production – 487 bcm
Number of active gas
production wells – 7,263
Number of producing
fields – 131
Electric power and heat generation




Gas transport system




Length of Gazprom’s trunk pipelines in Russia – 169 thousand km
Aggregate active capacity of 26 UGSF1 in Russia – over 70 bcm
Access to active capacity of UGSF in Europe – above 4 bcm
Natural gas transported via GTS2 in Russia – 659 bcm
Gas processing



1
2
Processing volumes – 32 bcm
Gas processing capacity – 54 bcm
Oil and gas condensate refining – 66 mm tons
Underground gas storage facility
Gas transportation system
SOURCE: GAZPROM ANNUAL REPORT 2013, GAZPROM IN FIGURES 2009-2013 FACTBOOK
INVESTOR DAY 2015
HONG KONG, SINGAPORE

Gazprom Group oil and gas
condensate
production — 69 mm tons
Number of active oil production
wells — 7,246
Total electric power generating capacity — 39 GW
Total heat generating capacity — 73 Tcalh
Total electric power generated — 163 billion kWh
Total heat generated — 113 mm Gcal
Marketing




Largest gas export company
European gas market share — 30%
Russian gasoline station oil product sales share — 13%
Russian electric power generation share — 15%
Personnel
Number of employees — 459,500, including:
 gas production, transportation, underground storage and processing
subsidiaries — 228,600
 Gazprom neft — 62,800
 Gazprom Energoholding — 50,800
 overseas companies — 27,400
All figures are dated of 31.12.2013
Calorific value of natural gas = 8,850
kcal/m3 (20 0С )
7
GAZPROM GROUP’S MISSION AND STRATEGIC GOAL
MISSION
STRATEGIC GOAL
RELIABLE, EFFICIENT AND BALANCED SUPPLY OF NATURAL GAS, OTHER ENERGY
RESOURCES AND REFINED PRODUCTS TO CONSUMERS
ESTABLISH ITSELF AS A LEADER AMONG GLOBAL ENERGY COMPANIES BY DIVERSIFYING
SALES MARKETS, ENSURING RELIABLE SUPPLIES, IMPROVING PERFORMANCE AND
UTILIZING R&D POTENTIAL
BUSINESS TYPE
EXPLORATION AND PRODUCTION
INVESTOR DAY 2015
HONG KONG, SINGAPORE
TRANSPORTATION AND STORAGE
PROCESSING AND ENERGY PRODUCTION
MARKETING AND SALES
8
WORLD GAS DEMAND
Share of natural gas in world total primary
energy consumption
2030 FORECAST
Natural gas consumption
by region
2013
20%
17%
23%
9%
3.6
3%
4%
24%
13%
6%
26%
tcm
5%
2013
NORTH AMERICA
14%
19%
LATIN AMERICA
30%
OECD EUROPE
OTHER EUROPE AND EURASIA
2030 FORECAST
33%
26%
28%
MIDDLE EAST
5%
GAS
OIL
COAL
NUCLEAR
RENEWABLES
AFRICA
24%
25%
4.8
tcm
ASIA OCEANIA
5%
12%
13%
16%
INVESTOR DAY 2015
HONG KONG, SINGAPORE
9
GAZPROM ON THE RUSSIAN DOMESTIC MARKET
Structure of Gazprom’s gas sales revenue, 20131
58%
774
740
3 000
2 000
300
0
265
250
2011
360
4 000
3,394
2,964
723
bcm
400
228
2012
2013
GAZPROM GROUP’S SALES IN RUSSIA (BCM)
REVENUE (RR BN)
DOMESTIC AVERAGE PRICE (RR/MCM)
1 000
RR/mcm
bcm; RR bn
600
2,725
FSU COUNTRIES
RUSSIA
27%
900
500
EUROPE
15%
Gas deliveries to Russian consumers2
300
200
0
Gazprom is responsible for the large-scale Program for Expansion of Gas Infrastructure
in Russian Regions. Level of natural gas gasification in Russia grew from 53.3% to
65.3% between 2005 and 2013. Length of Russian gas distribution system, operated
by Gazprom Group, is 716 thousand kilometers.
100
2015
Total final consumption
OIL
14%
20%
COAL
14%
52%
GAS
1
2
not including custom duties
incl. gas purchases from other companies
INVESTOR DAY 2015
HONG KONG, SINGAPORE
2025
2030
2030
ENERGY STRATEGY OF RUSSIA (PROJECT)
OTHER
OIL
13%
20%
COAL
15%
2014
OTHER
2020
52%
GAS SHARE STABILIZATION
IN FUEL AND ENERGY BALANCE
GAS
SOURCE: GAZPROM IN FIGURES 2009-2013 FACTBOOK, GAZPROM DATA
10
EUROPE: GAZPROM’S TRADITIONAL MARKET
Forecast — gas production vs. consumption in Europe
700
Gazprom’s pipeline gas deliveries to Europe
300
bcm
600
bcm
CONSUMPTION
500
200
~400
400
■
■
■
■
■
decrease of indigenous gas production in Europe
no success in shale gas developments
close of nuclear energy development
increase of gas consumption in transportation sector
new sectors of gas consumption
■
■
■
■
■
regasification terminals network development
European policy – diversification of suppliers and supply routes
regulatory frameworks in energy sector become tougher
policy in energy savings and energy efficiency
subsidizing of renewable energy sources
PRODUCTION
300
100
200
100
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
0
Shale gas in Europe — an expected setback
Estimated shale gas technically recoverable resources – 16.9 tcm
Rest of
France
Ukraine Romania
Europe
Poland 4.2
3.9
3.6
1.4
3.7
0
2010
2015
2020
2025
2030
Gazprom’s share in the European market
2013
2030
30%
30%
MAX
MIN
Recent progress and current state of development
SOURCE: WOOD MACKENZIE, EIA, PLATTS, ERI RAS, IEA, IHS, RYSTAD ENERGY, BP
INVESTOR DAY 2015
HONG KONG, SINGAPORE
JSC "GAZPROM"
OTHER SOURCES OF GAS
11
GAZPROM: UPSTREAM DEVELOPMENT
Field productivity
plateau, bcm/year1
Urengoyskoye (Achimov deposits)
25
Pestsovoye (Neocomian-Jurassic)
2
Yubileynoye (Apt-Albian, Senomanian deposits)
2
Bovanenkovskoye
115
Kharasaveiskoye
32
Severo-Kamennomysskoye
16
Kamennomysskoye-sea
15
Kirinskoye
6
Kirinskiy licensed section
16
Key Gazprom gas greenfields
North of West Siberia and Yamal peninsula Fields
Pre-Yamal shelf
Pechorskoye Sea shelf
Kharasaveiskoye
Bovanenkovskoye
Pestsovoye
Yubileynoye
Severo-Kamennomysskoye
Kamennomysskoye-sea
Urengoiskoye
RUSSIA
Chayandinskoye
Kovyktinskoye
Chayandinskoye
Eastern Siberia and Far East Fields
Kovyktinskoye
Gas field
25
35
«Sakhalin-3»
Kirinskoye
Kirinskiy licensed section
Continental shelf
Prospective sources of Gazprom’s gas production
800
OTHER NEW FIELDS
bcm
600
EAST SIBERIA AND FAR EAST FIELDS
400
YAMAL MEGAPROJECT
200
JSC GAZPROM NEFT
OPERATING FIELDS
0
2013
2020
min
2030
min
2020
max
2030
max
SOURCE: GAZPROM IN FIGURES 2009-2013 FACTBOOK, GAZPROM DATA
1 whole number rounding
INVESTOR DAY 2015
HONG KONG, SINGAPORE
12
KEY CURRENT AND PROSPECTIVE
RUSSIAN NATURAL GAS EXPORT DESTINATIONS
Sakhalin-Khabarovsk-Vladivostok
Power of Siberia
Altai project
- current Russian natural gas export destinations
- prospective and ongoing Russian natural gas export projects
- operating LNG projects
- prospective LNG projects
INVESTOR DAY 2015
HONG KONG, SINGAPORE
13
GAZPROM IN LNG MARKET
800
World LNG demand and production forecast
Mln t/year
LNG PLANTS UNDER CONSTRUCTION
OPERATING LNG PLANTS
OPTIMISTIC CONSUMPTION FORECAST
World total in 2014:
■ 19 LNG exporting countries, 30 LNG importing countries, incl. 3 LNG exporting/importing
countries
■ 39 operating LNG plants with total capacity of 414 bcm (302 mm t/year),
19 LNG plants under construction with total capacity of 178 bcm (129 mm t/year)
■ 108 operating and 21 under construction regasification terminals
PESSIMISTIC CONSUMPTION FORECAST
Baltic LNG
600
RUSSIA
Sakhalin-2
Vladivostok LNG
400
200
SOURCE: WOOD MACKENZIE
INVESTOR DAY 2015
HONG KONG, SINGAPORE
2030
2025
2020
2015
2010
2005
0
LNG EXPORTERS
OPERATING LNG PLANT
LNG IMPORTERS
PROSPECTIVE LNG PLANT
LNG EXPORTERS/IMPORTERS
14
GAS INFRASTRUCTURE DEVELOPMENT
IN EASTERN SIBERIA AND FAR EAST REGIONS
Transportation site
Date when put into operation
(not earlier)
Length, km
Trunk pipeline “Power of Siberia”
2018
4,000
Fields
Pipelines:
existing
under construction
possible
designed
Power of Siberia trunk pipeline
Operating trains of LNG plants
Prospective trains of LNG plants
CHINA
Production sites
Chayandinskoye
Kovyktinskoye (incl. Chikanskoye field)
INVESTOR DAY 2015
HONG KONG, SINGAPORE
Date when put
into operation
(not earlier)
Plateau
production,
bcm/year
2018
2022
25
35
15
RUSSIAN — CHINA GAS DEAL MAIN CHARACTERISTICS
CONTRACT VOLUME
CONTRACT LIFETIME
YEARS
BCM per YEAR


CHINA GAS CONSUMPTION 10 YEARS AGO
10% OF CHINESE GAS MARKET AFTER RAMPING UP

INVESTMENT
CONTRACT VALUE
$ BLN

CAPITAL INVESTMENT COMPARABLE WITH
AUSTRALIAN GORGON PROJECT ($54 BLN*),
RUSSIAN PROJECT VOLUME 75% HIGHER
PERIOD COMPARABLE WITH TRUNK GAS
PIPELINE LIFE TIME
$ BLN

TOTAL AMOUNT OF GAZPROM INVESTMENT
PROGRAM FOR LAST 10 YEARS
SOURCE: * WOODMACKENZIE, IHS PFC ENERGY
INVESTOR DAY 2015
HONG KONG, SINGAPORE
16
RUSSIAN — CHINA GAS DEAL
BOTTOM OF THE ICEBERG
GAS DEAL
For Gazprom
For CNPC

Market diversification

Favorable pricing versus LNG

Russian pipeline natural gas popularization in the Asia Pacific
Region market

Pipeline supply sources diversification

Natural gas supply sources diversification (from LNG)

Sales of Russian pipeline natural gas increase

Strengthening the company’s position in the gas supply market

Market niche decreasing for new high-cost LNG suppliers

Basic for “west” route negotiation

Long-term leadership in a strategic market – helium

Benchmark for Asia Pacific Region gas prices
RELIABILITY OF SUPPLIES DUE TO LACK OF TRANSIT RISK
For Russia











Trade and economic Russia-China cooperation widening
Trade balance equalization
New well-paid high-skilled jobs
Fuel and energy balance optimization in Eastern Siberia and the Far East regions
Contribution to GDP, taxes and duties
Reduction of unemployment rate in Eastern Siberia and the Far East regions
Geopolitical interests
Eastern Siberia and the Far East regions gasification
Gas processing and gas chemical industries development. High added value
products: helium, ethylene, propylene, polyethylene, polypropylene, ethylene glycol
Contribution to Russian natural gas production
Large order for manufacturers
INVESTOR DAY 2015
HONG KONG, SINGAPORE
For China

Trade and economic Russia-China cooperation widening

New well-paid high-skilled jobs

Fuel and energy balance optimization (gas share increasing)

Providing secured sources of supply for growing gas demand

Border territories gasification

Increase of chemical production imports from Russia

Large orders to manufacturers. New jobs

Ecological issues solution: decreasing emissions of CO2, SO2, NOx
and ashes
17
FORECAST OF CAPITAL INVESTMENTS
Structure of CAPEX by gas business segment
average annual 2015-2030
approx. 24 bln USD*
GAZPROM’S
DEVELOPMENT
PROGRAM
OVER A TENYEAR PERIOD
GAZPROM'S
INVESTMENT
PROGRAM
INNOVATIVE
DEVELOPMENT
PROGRAM TO
2020
PROCESSING, LNG
12 %
TRANSPORT
(incl. UGS**)
46 %
PRODUCTION
38 %
EXPLORATION
4%
*
May vary depending on USD/RUB
& EUR/RUB exchange rate
** UGS is underground gas storage
UGSS is unified gas supply system
Structure of CAPEX by major project
YAMAL MEGAPROJECT
28%
EASTERN SIBERIA AND THE FAR EAST*
OTHER PROJECTS*
53%
19%
INVESTOR DAY 2015
HONG KONG, SINGAPORE
*
exploration; existing and new
production and transport projects,
processing and LNG projects
18
UPSTREAM
VSEVOLOD CHEREPANOV
MEMBER OF GAZPROM MANAGEMENT COMMITTEE – HEAD OF THE DEPARTMENT
INVESTOR DAY 2015
HONG KONG, SINGAPORE
19
2014 GEOLOGICAL EXPLORATION RESULTS
Russian gas reserves
Independent
Producers
24%
4%
Unallocated
fund
Gazprom’s huge hydrocarbon reserves and longest reserve life
bboe
140
123
(37 yrs)
120
Gazprom
72%
89
(12 yrs)
100
96
(17 yrs)
80
60
Global gas reserves
40
Gazprom
17 %
20
0
Gazprom
Supermajor
Combined
Major Emerging
Markets Combined
X - 2013 total proved reserves of hydrocarbons (bboe)
(X) - Reserve life in years based on 2013 total proved reserves and 2013 production of hydrocarbons
SOURCES: BLOOMBERG, COMPANY’S DATA
INVESTOR DAY 2015
HONG KONG, SINGAPORE
20
SUMMARY GAS RESERVES INFORMATION
Natural Gas, tcm
С2(2)
АВС1(1)
С2(2)
АВС1(1)
С2(2)
36.1
10.1
1,444.4
679.6
1,937.2
1,594.4
Discovery of 1 new field and 8 new deposits within previously discovered fields
Gas reserves replacement ratio – 183 %
tcm
230,3
230,1
299,6
279,6
300
USD bn
241,4
250
208,6
50
200
160,8
40
20
299,2
269,6
60
30
Crude Oil, extracted, mm tons
АВС1(1)
2014
70
Gas Condensate, extracted, mm tons
28,0
25,3
78 18,5
28,9 27,7
29,1 27,8
92,921
20,8
29,9
27,9
20,8
29,8 28,4
20,8
33,6
33,1
29,2
21,3
29,9
33,1
35,1
30,6
31,7
32,9
22,8
22,5
21,9
35,1
23,4
35,6
33,2
36.1
150
23,3
100
50
10
0
0
2003
2004
2005
GAZPROM GROUP GAS RESERVES (ABC1)
1
2
2006
2007
AUDITED АВС1 RESERVES
2008
2009
2010
PROVED + PROBABLE RESERVES (PRMS)
2011
2012
2013
2014
PRESENT VALUE (INCL. LIQUID HYDROCARBONS, SULFUR AND HELIUM)
ABC1 reserves - explored reserves according to Russian standards of classification. Explored gas reserves (categories ABC1) are considered fully recoverable.
For oil and gas condensate reserves a special index of extraction is used. This index is calculated taking into account geological and technical factors.
C2 reserves belong to the estimated category and serve as a basis for setting up exploration work at a specific field.
INVESTOR DAY 2015
HONG KONG, SINGAPORE
21
PRODUCTION STRATEGY
Gazprom main production regions
Yamal
NadymPur-Taz
Krasnoyarsk gas
production
center
Sakhalin
gas
production
center
Yakutsk
gas
production
center
Irkutsk gas
production
center
Gazprom production 2003-2015
900
600
183%
bcm
552.4
540.2
200
180
YAMAL (BOVANENKOVSKOYE)
160
ZAPOLYARNOYE FIELD
140
549.7
513.2
461.5
300
%
120
444.0
79%
100
YAMBURGSKOYE FIELD
80
URENGOYSKOYE FIELD - CENOMANIAN
60
40
0
2003
2004
2005
2006
INVESTOR DAY 2015
HONG KONG, SINGAPORE
2007
2008
2009
2010
2011
2012
2013
2014F
2015F
MEDVEZHYE FIELD
OTHER FIELDS OF NADYM-PUR-TAZ REGION
20
OTHER REGIONS
0
GAS RESERVE REPLACEMENT RATIO (RIGHT AXIS)
22
YAMAL MEGAPROJECT
Bovanenkovskoye field (production forecast)
bcm
40
20
KARA SEA
Rusanovskoye
0
Leningradskoye
Malyginskoye
Taslyskoye
Severo-Tambeyskoye
Syadorskoye
Zapadno-Tambeyskoye
Kharasaveyskoye
Yuzhno-Tambeyskoye
2012
GYDAN BAY
Arcticheskoye
Teta-Yakinskoye
YAMAL PENINSULA
Antipayutinskoye
Tchugoriakhinskoye
Semakovskoye
Sredneyamalskoye
SeveroNurminskoye Kamenomysskoye
Khambateyskoye
TAZ BAY
Parusovoye
Kamennomysskoye
Obskoye
more
Novoportovskoye
Operating gas
pipelines
Projected gas
pipelines and gas
pipelines under
construction
Continental fields
2015F
С1+С2 Reserves
8.5 tcm of gas
203.3 mn t of condensate
Peak annual production
217 bcm of gas
4 mn t of stable condensate
Tambeyskoye industrial zone
Comprehensive
YAMBURG
gas processing OB BAYSevero-Urengoyskoye
unit
TAZOVSKIY
Wells, well
clusters
Shell fields
С1+С2 Reserves
3.9 tcm of gas
178.0 mn t of condensate
Peak annual production
65 bcm of gas
2.8 mn t of stable condensate
Combined CAPEX for Yamal Program development
2015 F
2016 F
RR 118.6 bn
RR 174.6 bn
INVESTOR DAY 2015
HONG KONG, SINGAPORE
2014 Plan
Bovanenkovskoye industrial zone
VerhneKruzenshternovskoye TiuteyskoyeZapadnoVostochno- Seykhinskoye
Bovanenkovskoye Bovanenkovskoye
Nerstinskoye
Neytinskoye
Baidarata
Bay
2013
Yuzhnaya industrial zone
С1+С2 Reserves
1.4 tcm of gas
60.0 mn t of condensate
Peak annual production
30 bcm of gas
0.8 mn t of condensate
23
EASTERN GAS PROGRAM
Kirinskoye field (production forecast)
bcm/year
1
0,5
0
2013
NORTH OF
THE
TYUMEN
REGION
Udachniy
Surgut
KRASNOYARSK
CENTER
KAMCHATS
KCENTER
Petropavlovs
kKamchatsky
Yakutsk
Mirniy
Oha
SAKHALIN
CENTER
YAKUTSK
KomsomolskCENTER
Uzhno-Sakhalinsk
na-Amyre
Tinda
Tomsk
IRKUTSK
Skovorodino
CS Bogandinskaya
Boguchani
Khabarovsk
CENTER
Sovgava
Proskokovo
Krasnoyarsk
Chelabinsk
Kansk
n
Chita
Achinsk
Omsk
Blagoveshensk
Taishet
Novoisbirsk Kemerovo
Balagansk
Abakan
Barnaul
Daqing
Sayansk Irkutsk
Zabaykalsk
Ulan-Ude
Biysk Novokyznetsk
KAZAKHSTAN
Gorno-Altaisk
Tyumen
ULAN-BATOR
Shenyang
MONGOLIA
Gas production center
Operating LNG plants
LNG plants under construction in Vladivostok
Projected gas processing plants
CHINA
Pipelines under construction
Lanzhou
Operating gas pipeline
TOKYO
NORTH
KOREA
SOUTH
PYONGYANG KOREA
BEIJING
Xian
JAPAN
Osaka
2015F
Sakhalin gas production center
С1+С2 Reserves
799 bcm of gas
116.4 mn t of condensate
Peak annual production
21.5 bcm of gas
5.05 mn t of stable condensate
Yakutsk gas production center - Chayandinskoye field
С1+С2 Reserves
1.4 tcm of gas
22.1 mn t of condensate
Peak annual production
25 bcm of gas
0.4 mn t of stable condensate
Busan Kitakyusyu
Xinyang
Shanghai
Combined CAPEX for Eastern Program development
2015F
2016 F
RR 57.4 bn
RR 279.5 bn
INVESTOR DAY 2015
HONG KONG, SINGAPORE
2014 Plan
Irkutsk gas production center - Kovyktinskoye field
С1+С2 Reserves
2.5 tcm of gas
85.7 mn t of condensate
Peak annual production
35.3 bcm of gas
1.9 mn t of stable condensate
Krasnoyarsk gas production center - Sobinskoye field
С1+С2 Reserves
154.4 bcm of gas
8.3 mn t of condensate
Peak annual production
n/a
n/a
24
GAS CONDENSATE – PREMIUM PRODUCT
Gas condensate production capacity
mn tonnes
Yamburg
4.7
Novy Urengoy
5.5
Yuzhno-Sakhalinsk
Orenburg
Astrakhan
0.2
Tomsk
0.3
0.1
3.7
Gas condensate production1
20
18
mn tonnes
16
14
12
10
11
12
13
2010
2011
2012
15
15
15
16
17
2013
2014
2015Plan
2016F
2017F
8
Calculations may diverge due to rounding
1 Management estimates; excluding associate companies’ production
INVESTOR DAY 2015
HONG KONG, SINGAPORE
25
EXPORT
ALEXANDER MEDVEDEV
DEPUTY CHAIRMAN OF GAZPROM MANAGEMENT COMMITTEE
INVESTOR DAY 2015
HONG KONG, SINGAPORE
26
EUROPEAN NATURAL GAS MARKET DYNAMICS
Balance of European Gas Consumption, bcm1
700
600
577.3
564.2
500
400
228.5
231.6
593.1
260.7
587.4
262.6
599.8
585.9
274.0
274.6
565.2
258.2
602.0
290.3
557.3
546.8
538.2
266.7
254.2
255.4
478.4
214.3
300
200
335.8
345.6
332.4
324.8
311.9
325.2
307.3
311.7
290.6
292.6
282.8
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
100
0
2003
INDIGENOUS PRODUCTION
1 GCV
IMPORTS (+BALANCE OF STORAGE)
30.0%
SOURCES: IEA, EUROSTAT , GAZPROM EXPORT ESTIMATES
Demand for Gas Dropped Due to
30.6%
25.4%
MILD WEATHER
2012
2013
2014E
CONSUMPTION
= 8850 KCAL PER MCM, T = 20°C
Gazprom’s Share is Stable
264.1
2014E
INVESTOR DAY 2015
HONG KONG, SINGAPORE
COMPETITION
FROM
RENEWABLES
AND COAL

Weather index (HDD +
CDD) for Q1-Q3 2014 in
Europe is 13% lower vs.
average

Power generation makes
20% in the European gas
mix. In Q1-Q3 2014 it
decreased by 14%
27
RELIABLE GAS DELIVERIES TO EUROPE
Near 50 years of impeccable operating track record1
180
bcm
160
140
120
100
80
60
40
20
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014E
0
Despite any crisis Gazprom has always fulfilled its export obligations and will do so in the future
1
Total gas sales in foreign markets excluding FSU
INVESTOR DAY 2015
HONG KONG, SINGAPORE
28
GAZPROM SALES TO EUROPEAN AND CIS MARKET
Gazprom Gas Deliveries to Europe1
160
bcm
140.6
150.0
138.6
Gazprom Gas Deliveries to CIS and Baltics
161.5
138.8
146.6
60
$402
80
0
$383
$296
$385
$341
120
0
2011
2012
2013
2014E
120
1Q-3Q 2013
114.2
$205
per
mcm
$235
2009
2010
2011
$308
2012
$274
$272
2013
2014E
Supply of the EU biggest gas producers
bcm
118.5
56.1
54.6
40
20
Supply of the biggest gas exporters to Europe1
160
64.4
$298
$302
2010
71.1
44.9
per
mcm
2009
bcm
68.0
120
40
80
1Q-3Q 2014
bcm
84.1
1Q-3Q 2013
1Q-3Q 2014
82.1
80
80
55.6
45.1
40
40
27.4 23.8
4.6
5.0
4.7
1
30.5
4.3
0
GAZPROM JSC ALGERIA (INCL.
LNG)
30.8
18.5 17.9
LYBIA (INCL.
LNG)
QATAR
NIGERIA
0
NORWAY
UNITED KINGDOM
NETHERLANDS
European countries with Turkey (excluding CIS and Baltics)
INVESTOR DAY 2015
HONG KONG, SINGAPORE
29
MID-TERM PROVISIONS
Short-term forecasts of European gas consumption by leading consulting
companies
(2008 consumption = 100%)

Actual forecasts of the
leading consulting
companies are
significantly below
previous estimates
because they take into
account the sharp drop in
demand for gas in 1-3
quarters of 2014

Under current market
conditions, 2015-2017
Gazprom export’s
estimates for gas
deliveries to Europe are
155-160 bcm/year
depending on weather
102%
100%
100%
98%
96%
94%
92%
90.8
90%
Actual demand 2006-14E
89.7
89.0
CERA (2013-Nov)
88%
88.1
CERA (2014-Jun)
86%
PIRA (2013-Oct)
84%
PIRA (2014-Oct)
86.0
89.0
87.6
86.5
86.2
84.4
82.8
CEDIGAZ - pessimistic (2013-Jun)
82%
91.6
83.3
CEDIGAZ - base (2013-Jun)
IEA (2013-May)
80%
79.8
IEA (2014-May)
78%
2006
2007
2008
INVESTOR DAY 2015
HONG KONG, SINGAPORE
2009
2010
2011
2012
2013
2014
2015
2016
30
HYBRID PRICING — CORNERSTONE
OF THE EUROPEAN MARKET
Natural Gas Prices in Europe
Move in Common Trend
Gazprom is a Major Provider of Supply
Flexibility to Europe
600
600
Mcm/Day
$/Mcm
550
Seasonal swing in
Russian gas daily
deliveries doubled
from 1998 to 2014
500
500
400
450
400
300
350
200
NBP Day-Ahead
100
TTF Day-Ahead
300
250
BAFA
0
Jan-14
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
Jan-06
Jan-05
Jan-04
Jan-03
Jan-02
Jan-01
Jan-00
Jan-99
Jan-98
Sep-13
May-14
Jan-13
May-12
Jan-11
Sep-11
Sep-09
May-10
Jan-09
May-08
Jan-07
Sep-07
Sep-05
May-06
Jan-05
May-04
Jan-03
Sep-03
200
 Roughly 2/3 of European gas import is still oil-indexed
 Oil price is still the main determinant of wholesale gas prices in Europe
 In 2008-2014, correlation between TTF and 6-month moving average of oil price was equal to 0.8
INVESTOR DAY 2015
HONG KONG, SINGAPORE
31
OBJECTIVE OF DECOUPLING OIL AND GAS PRICES
NOT ACHIEVABLE IN A FORESEEABLE FUTURE
Oil-indexed Prices Still Dominant in
European Gas Imports1
Forward Prices Put Henry Hub-based Cost-Plus
Pricing in Europe Under Question2
360
2,7% 2,4%
3,5%
$/Mcm
340
30.1%
320
21,5%
42,1%
300
280
2,4%
3,5%
1,8%
9,3%
260
10,8%
69.9%
240
Nov-19
Aug-19
May-19
Feb-19
Aug-18
Nov-18
Feb-18
May-18
Nov-17
Aug-17
May-17
other LNG hub-indexed
Feb-17
Gazprom hub-indexed
Nov-16
Qatar hub-indexed
Aug-16
Norway 2/3 hub-indexed
NBP Forward Curve
200
Feb-16
other LNG oil-indexed
Henry Hub-Based Cost-Plus Prices Range
May-16
Qatar oil-indexed
220
Aug-15
Libya oil-indexed
Nov-15
Algeria oil-indexed
May-15
Norway 1/3 oil-indexed
Feb-15
Gazprom oil- and quasi-oil-indexed
1 In
2
1-3Q 2014; for purposes of this comparison Europe is regarded without Norway
The price includes transportation from Henry Hub to Lake Charles, LA, liquefaction, transport, and regasification in the U.K. or Belgium
SOURCE: PIRA
INVESTOR DAY 2015
HONG KONG, SINGAPORE
32
GAS DEMAND WILL EVENTUALLY RETURN TO EUROPE
Bright Spots: New Applications
for Gas in Europe
In 2035:
Natural Gas in Power Generation
Rebound
+ 60 bcm
+ 50 bcm
207
bcm
139
bcm
234
bcm
2010
2014E
2035F
+ 30 bcm
SOURCES: IHS, GAZPROM EXPORT ESTIMATES
Small-scale CHP
Bunkering
Road transport
By 2035, bright spots could add 140 bcm to total
demand or 25% above current levels

Small-scale CHP offers low-cost energy and tax benefits.

Environmental restrictions provide incentive for broader use
of LNG in bunkering and road transport.
INVESTOR DAY 2015
HONG KONG, SINGAPORE
Due to:

aging coal and nuclear plants retirement;

obligatory CCS for new-built coal power stations (UK);

adjustment of the carbon emission allowances market.
33
ENTERING NEW GAS MARKETS
Gazprom in Asia-Pacific
WESTERN ROUTE PROJECT
Gazprom is set to build a diversified gas sales portfolio in Asia
comprising both pipeline gas and LNG:
EASTERN ROUTE PROJECT
November, 2014
Framework Agreement Signed
 In 2014 we finalized a long term SPA with CNPC for supplying 38
bcma of natural gas to China via Eastern Route pipeline. The deal
will allow Gazprom to expand its gas transportation facilities in
Eastern Russia and diversify pipeline exports.
Further negotiations
and firm agreements
 A broad geography of LNG deliveries to Asia is set to expand with the
launch of new LNG projects, making Gazprom one of the most active
players in the Asian market.
May, 2014
SPA signed
September, 2014
Start of construction works
Not earlier than 2018
Estimated commissioning date
Pipeline gas exports to China
are planned to reach 68 bcm/year in 2020+
Gazprom LNG Supply Source Structure
2014
2025
1%
14%
18%
46%
Europe
36%
85%
AsiaPacific
Atlantic
LNG from Gazprom projects
LNG deliveries by Gazprom Group
INVESTOR DAY 2015
HONG KONG, SINGAPORE
Pipeline gas deliveries by Gazprom
LNG Under Term Contracts
Spot Trading
Gazprom will supply >30 mmt/year
of LNG in 2022+ globally
34
GAZPROM LNG BUSINESS
Existing supply sources
Vladivostok LNG
10 mmt/year
Sakhalin-2
10 mmt/year
Gazprom Offtake
1 mmt/year
Baltic LNG
10 mmt/year
mmt
Sakhalin-2 T3
5 mmt/year
Total Output
25 mmt/year
Global Contracted LNG Volumes vs. Demand
500
Third-party supply sources
New Gazprom LNG Projects
35
400
300
200
Sakhalin-2 T3
20
Baltic LNG
15
Vladivostok LNG
10
Yamal LNG
0
Highlights
up to
2.9 mmt/year
LNG contracted under
LT HOA with Yamal LNG
project
INVESTOR DAY 2015
HONG KONG, SINGAPORE
mmt
25
0
2014
Gazprom Offtake
2.9 mmt/year
Third party term volumes
5
Colombia FLNG
Sakhalin-2
2015
2025
SOURCE: WOOD MACKENZIE
Gazprom Offtake
0.5 mmt/year
30
100
2020
Yamal LNG
16.5 mmt/year
Gazprom LNG Portfolio Development1
Projected LNG Demand
2015
Colombia FLNG
0.5 mmt/year
1
2020
2025
These volumes do not include spot trade
0.5 mmt/year
2 LNG Carriers
LT GAIL SPA
LNG contracted under MT
SPA with Colombia LNG
project
Newbuilds Velikiy Novgorod
and Pskov were delivered to
Gazprom
Went “live”
(CP lifted)
52
Cargoes were delivered
by GM&T to Asia-Pacific
and Atlantic markets
35
GAZPROM ACTIVITIES IN THE GLOBAL NGV MARKET
Bunkering
On-road transport
LNG consumption as bunker fuel in Baltic
and Northern seas in 2015-2025
Gazprom Group companies G4T assets
4,5
4,0
3,5
3,0
2,5
2,0
1,5
1,0
0,5
0,0
mt
GERMANY

Gazprom Germania GmbH (100% owned by Gazprom
export): 23 stations
CZECH REPUBLIC

Gazprom Germania GmbH: 6 stations + 3 in the
process of construction

Vemex (more than 50% owned by Gazprom Germania
GmbH): 5 own stations + supplying 8 third party
stations

Gazprom Germania GmbH: 1 LNG station +1 in the
process of construction

Cryogas (100% owned by Gazprombank): EPCcontractor in SSLNG segment
SLOVAKIA

Vemex: gas supply to 1 third party station
VIETNAM

JV between Gazprom and Petrovietnam: development
of NGV-infrastructure and gas supply to gas-filling
stations
POLAND
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
SOURCE: SSPA SWEDEN AB
Pilot project: port of Rostock
(more than 13 mln tons of cargo and more than 2 mln
passengers per year)
Project task: Creating a distribution center in the port of Rostock for
LNG supply to marine/land transport and to remote industrial
customers
Participants:
Gazprom Group companies’ gas sales
for on-road transport
20
mcm/year
15
Poland
10
Czech Republic/Slovakia
5
Germany
0
2012
INVESTOR DAY 2015
HONG KONG, SINGAPORE
2013
2014
2015
*
*Forecast
36
FINANCE
ANDREY KRUGLOV
DEPUTY CHAIRMAN OF GAZPROM MANAGEMENT COMMITTEE – HEAD OF THE DEPARTMENT
INVESTOR DAY 2015
HONG KONG, SINGAPORE
37
GAZPROM POSITION IN GLOBAL ENERGY
STRONG FINANCIAL POSITIONS AMONG OIL & GAS MAJORS
Comparative revenues, EBITDA
and net income CAGR1
25
20
Top-5 oil and gas majors
by EBITDA, 9M2014 LTM
60
%
19.5%
19.2%
USD bln
50
19.4%
40
15
30
10
20
6.9%
4.4%
5
4.4%
55,5
53,9
48,0
39,9
10
0
0
REVENUES
EBITDA
GAZPROM
1
56,1
NET INCOME
TOP-10 OIL & GAS MAJORS
Median CAGR of top 10 oil & gas majors by market capitalization as of January 20, 2015
INVESTOR DAY 2015
HONG KONG, SINGAPORE
SOURCE: COMPANIES WEBSITES, BLOOMBERG AS OF JANUARY 20, 2015
38
SUSTAINABLE FREE CASH FLOW GENERATION
Gazprom FCF generation1
60
USD bln
51.9
51.2
8,3
7,5
43,6
43,7
2010-2011
2012-2013
50
40
50.8
12,9
34.7
7,7
30
21.7
3,0
20
7.9
10
18,7
8,2
-0,3
2004-2005
-1
37,9
27,0
2006-2007
2008-2009
CASH CAPITAL EXPENDITURES
9m2014 LTM
FREE CASH FLOW
Gazprom self funding2
150%
142%
140%
130%
134%
123%
120%
125%
110%
100%
140%
113%
110%
109%
100%
99%
97%
90%
105%
92%
80%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
9m2014 LTM
1
Period averages
2 OCF/Cash CAPEX
INVESTOR DAY 2015
HONG KONG, SINGAPORE
39
BALANCED CAPEX
60
USD bln
Gas Upstream
 Bovanenkovo field
 Development of fields related to the Eastern Gas
Program and export to China
 Gas brownfields development and support
50
GAS UPSTREAM
50
2015 Priorities
55
46
GAS DOWNSTREAM
OIL
40
POWER GENERATION
OTHER
37
35
32
CASH CAPEX
30
26
23
18
20
Oil
 Novoportovskoe, Messoyakha and other greenfields
development, brownfields support and refining
modernization
12
10
10
7
0
2003
2004
2005
2006
Gas Downstream
 Bovanenkovo-Ukhta pipeline
 GTS Extension – Southern Corridor
 Preliminary works, roll out of the Eastern Gas
Program and China export project
2007
2008
2009
2010
2011
2012
2013 2014E 2015F
Power generation
 Investments in new capacity

CapEx peak in 2010-2013 is associated with investments in greenfields development, construction and development of gas transportation
routes from Yamal and North of Western Siberia, Eastern Gas Program, South Stream project.

CapEx drop in 2014-2015 follows completion of peak phases of key investment projects realized in 2010-2013 and Rouble depreciation.
SOURCE: COMPANY DATA, MANAGEMENT ESTIMATES
INVESTOR DAY 2015
HONG KONG, SINGAPORE
40
CAPEX EFFICIENCY
CAPEX:
Gazprom vs Russian oil majors1
80
CAPEX/hydrocarbon production:
Gazprom vs Russian oil majors1
16
USD bln
70
47,8
43,7
43,6
37,9
37,1
40
32,4
26,2
30
27,0
11,5
12,2 12,5
10,4
10
8,8
8,2
8
6
18,7
13,2
12,9
12
49,2
50
5,2
4
10
2
0
0
2006-2007
2008-2009
GAZPROM
1
14,4
14
60
20
USD/boe
Period averages
2010-2011
2012-2013
9m2014 LTM
RUSSIAN OIL MAJORS AGGREGATE
2006-2007
2008-2009
GAZPROM
2010-2011
2012-2013
9M2014LTM
RUSSIAN OIL MAJORS AGGREGATE
SOURCE: COMPANY DATA
SOURCE: COMPANY DATA

CAPEX of Gazprom is historically comparable to that of the Russian oil industry, including Transneft

The largest portion of Gazprom CAPEX in 2009-2013 was allocated to the development of gas transportation assets

In 2009-2013 Gazprom put onstream Yamal, a new gas production province capable of becoming the main source of gas supplies for the next
several decades

Per-barrel volume of Gazprom CAPEX is close to that of Russian oil majors.
INVESTOR DAY 2015
HONG KONG, SINGAPORE
41
TOP RUSSIAN BORROWER
One of the lowest levels of leverage, 9M2014
Debt maturity profile
**
140
120
21%
26%
38%
33%
33%
31%
36%
39%
13%
14%
100
Debt, USD bln
*
80
60
17%
40
**
20
19%
24%
22%
18%
16%
2011
2012
2013
9M2014
0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Net debt / EBITDA LTM
*
Rosneft net debt is adjusted for prepayments on long-term oil supply agreements
1h2014 data
LESS THAN 1 YEAR
**
Cost of debt financing
10
A-
%
8
6.2%
5.4%
6
4
2.7%
2
2009
2010
2-5 YEARS
MORE THAN 5 YEARS
Gazprom credit ratings
S&P,
Fitch
0
2008
1-2 YEARS
2011
2012
WEIGHTED AVERAGE FIXED INTEREST RATE
WEIGHTED AVERAGE FLOATING INTEREST RATE
WEIGHTED AVERAGE INTEREST RATE
2013
9M2014
Moody's
A3
BBB+
Baa1
BBB
Baa2
BBB-
Baa3
BB+
Ba1
BB
Ba2
BB-
Ba3
B+
B1
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
S&P
MOODY'S
FITCH
INVESTMENT GRADE
SOURCE: BLOOMBERG, 9M2014 COMPANY DATA
INVESTOR DAY 2015
HONG KONG, SINGAPORE
42
DIVIDEND PAYOUT
Dividend
per share
12
12M dividend yields
of major oil & gas companies1
%
RUB / Share
25.0
10
24,1
30
25,5 25.0
25
8,97
8
10%
7.20
17,5 17,5 17,5 17,5
8%
20
6%
5,99
6
7,7%
5,8%
5,8%
5,8%
15
9,1
4
2,54 2,66
0,69
0
4,8%
4,8%
4,1%
11,5
2
5,3%
1,19
4,9
3,85
4%
3,8%
2,9%
10
2,39
1.50
5
2%
0,36
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0
0%
DIVIDEND PAYOUT RATIO, % (RIGHT SCALE)
1 Dividend
yield is defined as approved dividends for the period divided by the share price as of December 31, 2014;
Source: Companies data, FactSet
INVESTOR DAY 2015
HONG KONG, SINGAPORE
43
NATURAL HEDGING AGAINST ROUBLE VOLATILITY
Hard currency denominated revenues
Hard currency denominated cash OPEX
31%
Gas sales, Europe
16%
8%
14%
50%
75%
Gas production
3%
25%
1%
50%
75%
12%
100%
16%
5%
5%
2%
Electric and heat energy generation and sales
ROUBLES - 56%
EUR
33%
17%
Refining
13%
Debt distribution by currency
5%
Crude oil and gas condensate production
4%
1%
HARD CURRENCY* - 44%
0%
31%
6%
4%
4%
Other cash operating expenses
100%
Hard currency denominated CAPEX
Transportation
6%
1%
Staff costs
3%
ROUBLES - 35%
25%
1%
Goods for resale
3%
HARD CURRENCY* - 65%
3%
Repairs
7%
Electricity and heat energy
0%
8%
Materials
Gas sales, Russia
Other revenues
13%
Transit of gas, oil and refined products
11%
Gas transportation
1%
8%
Taxes other than income
7%
Gas sales, FSU (ex. Russia)
Crude oil, gas condensate and refined products
domestic sales
20%
Purchased gas and oil
Crude oil, gas condensate and refined products
export
RUB
14%
4%
2%
Distribution
Gas storage
1%
HARD CURRENCY* - 21%
Other
3%
ROUBLES - 79%
0%
25%
50%
75%
Other
1%
100%
Data for revenues, cash OPEX AND CAPEX is adjusted on RUB-denominated amounts linked to hard currency
* Hard currency — mainly USD and EUR
INVESTOR DAY 2015
HONG KONG, SINGAPORE
USD
52%
SOURCE: COMPANY DATA, MANAGEMENT ESTIMATES
44
SUBSTANTIAL RESILIENCE
TO WORSENED ENVIRONMENT
HIGHER STABILITY OF GAS PRICES, RUBLE DEVALUATION AND CONSERVATIVE FINANCIAL
POLICY ENSURE STRONG FOOTHOLD IN DIFFICULT TIMES
Oil and gas prices in 2008-2010 crisis
160
RUB/USD rates during 2014 & 2008 oil price shocks
%
140
$/bbl
RUB/USD
70
140
120
60
120
100
50
80
40
60
30
40
40
20
20
20
10
100
80
60
0
0
1q08
OIL
1q09
1q10
GAZPROM GAS EUROPE
1q11
NBP
$bln
$/bbl
100
80
120
70
100
60
80
50
40
20
20
10
0
0
EBITDA
2010
NET DEBT
INVESTOR DAY 2015
HONG KONG, SINGAPORE
2011
2012
2013
OIL PRICE (RIGHT SCALE)
1q12
1q13
1q14
1q15
RUB/USD RATE
SOURCE: BLOOMBERG
$bln
$/bbl
120
100
80
40
40
0
1q11
Conservative financial policy improves FCF outlook
60
2009
1q10
OIL PRICE
60
2008
1q09
SOURCE: COMPANY DATA, BLOOMBERG
EBITDA and NET DEBT during 2008-2010 crisis
120
0
1q08
60
30
40
20
20
0
2008
2009
2010
CAPEX
2011
FCF
2012
2013
9M14 2015E
LTM
OIL PRICE (RIGHT SCALE)
45
DIVERSIFICATION OF CAPITAL MARKETS
INCREASE OF GAZPROM GDR HOLDERS IN ASIA-PACIFIC
AsiaPasific
4%
AsiaPacific
10%
Other
0%
Northern
America
48%
Europe
48%
Potential listing on Hong Kong
or other Asian stock exchanges
Other
1%
Europe
43%
Northern
America
46%
Gazprom obtains credit rating from an
Asian rating agency

2008
2014
Gazprom GDRs were listed on the Singapore
Stock Exchange

Growth of international investor base

Targeting 24-hour trading of the Company's securities
on international platforms
Gazprom’s credit rating may potentially exceed the
sovereign credit rating of Russia
Gazprom 2015 Investor Day held in Hong
Kong and Singapore

Special focus on Asian markets during road shows
and investor meetings
SOURCE: ANALYTIC SURVEY NASDAQ OMX, T1IR DECEMBER 2014
INVESTOR DAY 2015
HONG KONG, SINGAPORE
46
CORPORATE GOVERNANCE
Information disclosure
Gazprom shareholding structure
2006 (AS OF 31.12)
2014 (AS OF 30.06)
Transparency of Gazprom's activities
is ensured through
36,80%
38,37%
26,23%
13,20%
Over 18 years of audited IFRS reports
publication
Timely and complete disclosure of
information (including on Gazprom's
website) as required by applicable laws
and regulations
Disclosure of all material information
in the English language
38,37%
23,54%
10,74%
0,89%
10,97%
0,89%
RUSSIAN FEDERATION
RUSSIAN FEDERATION
ROSNEFTEGAZ*
ROSNEFTEGAZ*
ROSGAZIFIKATSIYA*
ROSGAZIFIKATSIYA*
HOLDERS OF DEPOSITORY RECEIPTS
HOLDERS OF DEPOSITORY RECEIPTS
OTHER LEGAL ENTITIES AND INDIVIDUALS
OTHER LEGAL ENTITIES AND INDIVIDUALS
Corporate governance improvement
Actions taken in 2014
Actions in progress
 Gazprom shares included in the First Level
quotation list of Russian Stock Exchanges
 Enhancement of the incentive programme for
the members of the Board of Directors
Clearly defined information disclosure
processes set by
robust internal regulations
 New indicators TSR and ROE (jointly weighing
30%) added to the KPIs for Management
 Creation of a Corporate Secretary function
Equal access of all stakeholders to
the disclosed information
 The Corporate Ethics Committee established
according to the Gazprom's Code of
Corporate Ethics
 Extension of the period up to 38 days for
providing information materials for
Shareholders Meetings
*
INVESTOR DAY 2015
HONG KONG, SINGAPORE
 Improvement of Gazprom's website content
 Continued efforts for implementation of
ethical business practices within the
framework of the Corporate Ethics
Committee's activities
Entities controlled by the Russian Government
47
VALUATION COMPARISONS VS PEERS
EV/2013 proved reserves*
EV/EBITDA 9M2014 LTM
25
8
17
16
14
15
5
13
5
5
7
5
4
4
4
8
10
3
3
1
2
4
2
2
2
1
Gazprom’s reserves — prms, other companies — sec
Petrobras’ financial statements data is on 1H2014
*** Rosneft’s data is adjusted on prepayment on long-term oil supply agreements
Market data as of 28/01/2015
Novatek
Rosneft***
Lukoil
Rosneft
PetroChina
Petrobras**
Total
BP
Shell
Chevron
3
2
3
Rosneft***
Rosneft***
PetroChina
Petrobras**
Total
BP
Shell
Chevron
Exxon
Gazprom
0
7
Novatek
69
6
Lukoil
61
Rosneft
59
6
PetroChina
55
Novatek
25
Lukoil
100
Rosneft
122
150
10
10
Petrobras**
188 192
13
Total
202
200
13
11
BP
229
250
16
Shell
268
18
16
14
12
10
8
6
4
2
0
Chevron
300
Exxon
Rosneft***
Novatek
Lukoil
Rosneft
311
P/E 9M2014 LTM
Exxon
350
PetroChina
Petrobras**
Total
BP
Shell
Chevron
Exxon
Gazprom
EV/2013 production
Gazprom
0
0
50
3
3
5
USD / boe
7
5
6
Gazprom
USD / boe
20
7
7
19
19
*
**
INVESTOR DAY 2015
HONG KONG, SINGAPORE
SOURCE: BLOOMBERG, COMPANY DATA
48
VALUE DRIVERS
1
3
INVESTOR DAY 2015
HONG KONG, SINGAPORE
Unparalleled
Fundamentals
2
Sound Strategy &
Strong Market Position

17% of global gas reserves

Natural gas is future of the world energy

72% of Russian gas reserves

Gazprom is a global energy major

14% of global gas production

30% share in the European gas market

73% of Russian gas production


>100% Reserve replacement ratio
Diversification of products and export
markets is key to our business continuity
Improving Corporate
Governance
4
Conservative
Financial Policy

Focus on shareholders value

Impressive profitability

Solid dividend policy

Conservative CAPEX management

Increased level of transparency

Efficient system of OPEX management

Commitment to sustainable
development

Strong liquidity ratios
49
CONTACTS FOR INVESTORS
ANDREY BARANOV
Deputy Head of Directorate
E-mail: [email protected]
IVAN KHROMUSHIN
Head of Division
Phone: (007) (495) 719-3143
E-mail: [email protected]
INVESTOR DAY 2015
HONG KONG, SINGAPORE
50