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$: Company Presentation - SIBURinvestors.sibur.com/~/media/Files/S/Sibur-IR/presentations-archive... · Economics of raw NGL fractionation limits exposure to oil & oil derivative price$
Company Presentation

March 2016

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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.

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4.0

6.2

8.5 8.7 8.5 9.4

3.2

0.8 1.9

2.9 2.6 2.5 2.7 1.1

20%

31%

35%

30% 29% 32%

36%

2009 2010 2011 2012 2013 2014 H1 2015

Revenue, USD blnEBITDA, USD blnEBITDA margin, %

(2)

SIBUR AT A GLANCE

Notes: (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.

All financial figures for SIBUR in this presentation for the years of 2009-2012 are based on combined financial information, which excludes the results of the mineral fertilisers and tyres businesses, which were divested by SIBUR in December 2011.

(2) Estimated EBITDA margin excluding naphtha trading via Ust-Luga transshipment facility.

Naphtha trading operations via Ust-Luga, ceased in 2015

Financial Performance(1)

1.6x 0.7x 0.7x 1.0x 1.1x

Net debt/

EBITDA

(USD) 1.2x

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) with no history of

downgrades throughout 2008/09 crisis

SIBUR Advantage

Ba2 Ba2 Ba2 Ba1 Ba1 Ba1

BB BB BB BB+ BB+ BB+

Key Facts

26 production sites in Russia

Over 25,000 employees

Over 1,400 large customers from 75 countries representing

diverse range of end-customer industries

Revenue by Product (2014)

60

37

3

Energy

products

Petchem

% 49 36

8 6 1

Asia

CIS

Europe

Russia

%

Revenue by Region (2014)

1

2

3

4

5

Other revenue Other

1.8x

Ba1

BB+

3

http://www.google.ru/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://commons.wikimedia.org/wiki/File:Moody%E2%80%99s_logo.svg&ei=ZWMuVZqGNsyRsgGuyIKQCQ&bvm=bv.90790515,d.bGg&psig=AFQjCNEPkaGWUpwXXyGkuXB8KX0AP1LZXQ&ust=1429189849493573

http://www.google.ru/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Fitch_Ratings_Logo.jpg&ei=wWMuVcGiF8GpsgGBv4HYCg&bvm=bv.90790515,d.bGg&psig=AFQjCNH1r15u5eZ6plb8ostrFApGej_NXw&ust=1429189910717406

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SIBUR OPERATES A UNIQUE VALUE CHAIN

Notes:

(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.

Oil-based

feedstock

(APG)

Gas-based

feedstock

(NGLs)

Gas processing /

Fractionation Intermediates

Basic

polymers

Synthetic

rubbers

Plastics & organic

synthesis products

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

Production and sale of four categories of

petrochemical products

Dominant share of feedstock sourced

internally

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

EXTERNAL SOURCING

OF HYDROCARBON

FEEDSTOCK

FEEDSTOCK AND ENERGY

(3)

PETROCHEMICALS

Integrated Value Chain from Feedstock Sourcing to the Production of Petrochemicals

2014 H1 2015

EBITDA, USD mln 2,299 663

EBITDA margin 41.8% 37.4%

2014 H1 2015

EBITDA, USD mln 542 504

EBITDA margin 14.6% 31.4%

4

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EXTENSIVE ASSET BASE THROUGHOUT RUSSIA

Salekhard ●

Kemerovo ●

Tyumen ●

Omsk ●

Samara ● ● Ufa

Voronezh ●

● Saint-Petersburg

Tver●

Tula●

●

Nizhniy Novgorod

Kursk●

● Tomsk Krasnoyarsk ●

● Purovsk Moscow●

Tobolsk ●

WESTERN SIBERIA

WESTERN SIBERIA

Largest oil & gas

reserves region in

Russia

22 tcm

48 bln bbl

Proven oil reserves

Proven gas reserves

Joint Ventures

facilities operated under JVs

Energy Products

gas processing &

fractionation,

MTBE & other fuel

additives

Petrochemicals

basic polymers

synthetic rubbers

plastics & organic synthesis

intermediates

other chemicals

Logistics

raw NGL pipeline

transshipment facility in

Ust-Luga operated by SIBUR

Khanty-Mansiysk ●

● Perm

5

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Plastics and

organic synthesis

Basic polymers

(PP, PE)

Synthetic rubbers

VERTICALLY INTEGRATED MODEL WITH MULTIPLE

EMBEDDED EARNINGS SUSTAINABILITY DRIVERS(1)

Feedstock &

Energy

segment

Petrochemicals

segment

Methanol

NGLs

Other third-party

feedstock

100%

100%

MTBE

NGLs

Natural gas

Oil & Gas

producers

9 production sites

Gross sales:

RR 211.2 bln(2)

EBITDA margin(3):

41.8%

17 production sites

Gross sales:

RR 142.3 bln

EBITDA margin:

14.6%

Gas-based

feedstock

(NGLs)

Intermediates and

other chemicals

Oil producers

External sales represent c.

86% of Feedstock & Energy

segment gross revenue(2)

Dominant share of feedstock

for petrochemicals segment is

sourced internally

Oil-based

feedstock

(APG)

- Share of available for sale volumes X%

Notes:

(1) All figures based on FY 2014 financials.

(2) Excludes naphtha trading volumes.

(3) Estimated EBITDA margin excludes naphtha trading via the Ust-Luga transshipment facility.

Earnings Sustainability Drivers

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

Net seller position of energy

products hedges against

increases in prices for

petrochemical feedstock

Prices for petrochemical

products are only partially

correlated with oil & oil

derivative prices

30%(2)

1. Vertically integrated business model supporting resilient business performance

70%(2)

6

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YAMAL-NENETS

AUTONOMOUS AREA

KHANTY-MANSI

AUTONOMOUS AREA

Purovsky GCP

(NOVATEK)

Gubkinskiy

GPP

Muravlenkovskiy

GPP

Vyngapurovskiy

GPP

Nyagan GPP

Nizhnevartovskiy

GPP

Belozerniy

GPP

Yuzhno-Balykskiy GPP

Tobolsk-Neftekhim

Tobolsk-Polymer

PYT-YAKH

TOBOLSK

PUROVSK

NOYABRSK

TYUMEN REGION

UNIQUE LARGE-SCALE TRANSPORTATION AND FEEDSTOCK PROCESSING

INFRASTRUCTURE IN WESTERN SIBERIA

2. Advantageous access to feedstock and high barriers to entry

SIBUR / third-party gas processing plant (GPP)

SIBUR / third-party compressor station

third-party gas condensate plant

SIBUR gas fractionation unit (GFU)

SIBUR propane dehydrogenation facility (PDH)

SIBUR polymers production

SIBUR loading rack

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 23 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 2,995 km

4 railway loading racks (out of 6 operated by

Feedstock & Energy segment)

ECONOMIES OF SCALE

INTEGRATED INFRASTRUCTURE

HIGH BARRIERS TO ENTRY

third-party power plant

SIBUR / third-party APG pipeline

Gazprom condensate pipeline

SIBUR / Gazprom natural gas pipeline

SIBUR old raw NGL pipeline

SIBUR newly constructed raw NGL pipeline

truck transportation

7 Notes:

(1) Including one GPP in JV.

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Hyd

rocarb

on

Feed

sto

ck

Pu

rch

asin

g E

xp

en

ses

SECURED ACCESS TO FEEDSTOCK

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.

12.4 13.0 12.7 13.0 13.9 19.4

10.3

16.8 17.5 18.0 18.7 19.6 20.8

2009 2010 2011 2012 2013 2014 H1 2015

0

10

20

30

40

50

60

2005 2010 2015 2020 2025 2030

0

20

40

60

80

100

2005 2010 2015 2020 2025 2030

1.1 1.5 2.0 1.9 2.1 2.2

1.3

2.4 2.8

3.3 3.4 3.6

2.6

2009 2010 2011 2012 2013 2014 H1 2015

6.3 14.2

22.9 24.7 25.6 25.8 12.2

4.0 4.7

5.3 7.3 9.4 20.5

10.7 10.3

18.8

28.2 32.0

35.0

46.4

22.9

2009 2010 2011 2012 2013 2014 H1 2015

Outlook for Feedstock-Rich Gas Production in Russia(4)

91% of APG supplies for

2016 guaranteed under

multi-year contracts

WA maturity of supply

contracts – 15.7 years

NOVATEK Gazprom Rosneft

Gazprom Neft

RussNeft

Key Supply Contracts as of 31 December 2015

APG NGLs

94% of NGLs supplies for

2016 guaranteed under

multi-year contracts

WA maturity of supply

contracts – 17.3 years

SIBUR’s Feedstock Purchases

Associated Petroleum Gas Unstable Gas Condensate

mln tonnes 2014 APG flaring –

c.16%(5) of

produced volumes

bcm(1)

mln tonnes

bcm(1)

SIBUR‟s purchases Purchases from Rosneft in JV(3)

SIBUR‟s purchases Rosneft‟s share in APG purchases(2)

RR bln

APG NGLs

AP

G

NG

Ls

2. Advantageous access to feedstock and high barriers to entry

8

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DIVERSE DRIVERS AND END-MARKETS

2014

revenue(1),

RR bln

2014

revenue(1)

structure

Notes:

(1) External sales.

(2) Primarily LPG and naphtha.

Correlation

with oil

prices S

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)

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

Demand/ supply in multiple end-customer industries

Domestic

Export

19%

81%

23%

77% 64%

36% 11%

89% 100% 37%

63% 13%

87%


43% 10% 6% 11% 8% 13% 6%

156

38 23 38

28 46 20

x% Share in

total revenue

Currency

nature

US dollar

Russian rouble

Key end-

markets

Liquids(2) Natural gas MTBE & other fuel additives

Basic polymers

Synthetic rubbers

Plastics & organic synthesis

Intermediates & other chemicals

Petrochemicals, fractionation

FMCG, construction

Automotive, construction

FMCG, chemicals,

construction Fuels

Chemicals, petrochemicals

Residential applications

Power, utilities

3. Highly diversified product portfolio

9

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54 46

LDPE

65

35

Ba

sic

po

lym

ers

S

yn

the

tic

ru

bb

ers

P

lasti

cs a

nd

org

an

ic s

yn

the

sis

LEADING PLAYER IN THE HIGH-GROWTH DOMESTIC MARKET

2014

2014

2014

%

%

MEG

Russia Consumption Growth Outlook

CAGR, 2013-2020

Others SIBUR‟s share

Growth Fundamentals

Kg per Capita Consumption of Basic Polymers

Polypropylene Polyethylene (LDPE)

Source: IHS, Market Report, IISPR.

SIBUR’s Share in Russia’s Production Capacity

1.5%

2.4%

3.1%

3.7%

3.9%

4.1%

4.9%

5.0%

9.7%

LDPE

PET

HDPE

PP

EPS

MEG

IIR

PVC

LLDPE

4

4

6

8

Russia

China

Eastern Europe

Western Europe

7

14

13

18

Russia

China

Central Europe

Western Europe

72

28

BR

47 53

SBR SBS

% % %

100

%

4. Leading market position in the attractive Russian petrochemicals market

44 56

Polypropylene

%

17

83 55

45 %

PET

%

Expandable

polystyrene

10

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Europe

PETROCHEMICALS

FEEDSTOCK

PETROCHEMICALS

AND END-PRODUCTS

FEEDSTOCK

>6,000 km

>4,000 km

Long distances with

infrastructural

constraints

Significant export

duties for naphtha and

LPG in Russia Ample feedstock

base

Significant export

duties for naphtha and

LPG in Russia

SIBUR‟s production assets China and Northeast Asia

EFFICIENT MONETISATION OF STRANDED FEEDSTOCK

5. Unique growth opportunities

SIBUR’s

petrochemical hub

in Tobolsk

Naphtha price(1)

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.

Transportation to W.Europe(3)

PE

price i

n W

este

rn E

uro

pe

Illustrative HDPE price build-up

LPG price in Europe(4)

Transport &

export duties(4)

LPG price in Tobolsk(4)

LPG feedstock cost

in Tobolsk(5)

HDPE production cost

net of by-product credits(3)

Weste

rn E

uro

pe

To

bo

lsk

Naphtha feedstock cost(2)

Total cost for producers(3)

HDPE production cost (3)

Total cost

for producers(3)

11

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ME Avg NA Avg

NEA Avg WE Avg

0

500

1,000

1,500

2,000

2,500

0.0 50.0 100.0 150.0 200.0

1. Zapsibneftekhim

2. Tobolsk-Polymer

3. Sibur-Kstovo

4. Tomskneftekhim

ME – Middle East, NA – North America,

NEA – Northeast Asia, WE – Western Europe

Ethylene

(1) National Wealth Fund.

(2) Source: IHS 2015, SIBUR estimates.

ZAPSIBNEFTEKHIM (ZAPSIB-2):

EXPANSION OF POLYOLEFINS PRODUCTION IN TOBOLSK

Production Scheme

Propane

Ethylene

1,500 Ethylene

cracking

unit (ECU)

‟000 tonnes

Ethane

N-Butane

HDPE - 350

HDPE - 350

LLDPE / HDPE - 400

LLDPE / HDPE - 400

PP - 500 Propylene

525

Strong Position on the Global Cost Curve (2019)(2)

5. Unique growth opportunities

(USD per tonne)

Cumulative capacity („000 000 tonnes)

Propylene

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 C4 (Linde AG, Germany)

PE production units: 1.5 mtpa of PE (INEOS, the UK)

PP production unit: 0.5 mtpa of PP (LyondellBasell,

the Netherlands)

Russian State support for the project expected through investment

agreements with the Tobolsk regional Government and City

Administration

Status as of 1 November 2015

1 1

2 3 3

4 4

NA Avg

NEA Avg

ME Avg

WE Avg

Completed most preparation works, civil works started

FEED for ECU, PP and PE units completed

Overall completion 13.0%, 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 115 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 1.75 bln with a tenor of 15 yrs from the NWF(1) – placement

announced

Major EP contractors engaged (Linde, Technip, ThyssenKrupp Industrial

Solutions)

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1. Business Description: Additional Details

2. H1 2015 Operational and Financial Results

3. 9M 2015 Limited Operational Update

4. Exposure to Oil Prices & FX, Market Prices

5. Investment Programme Results

6. Yugragazpererabotka Transaction

13

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ENERGY PRODUCTS

C1 C2

Methane (gas) Ethane (gas)

C3-4 C5-6 C7+

Propane (gas / liquid)

Butane (gas / liquid)

Isobutane (gas / liquid)

Pentane (liquid)

Isopentane (liquid)

Hexane (liquid)

Heavy

fractions

Liquefied Petroleum

Gas (LPG) Naphtha

Raw Natural Gas Liquids (Raw NGL)

Oil

Natural Gas

Associated Petroleum Gas (APG)

fractions can be used as petrochemical feedstock

14

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MULTIPLE PRODUCTS, GEOGRAPHIES AND CUSTOMER GROUPS

Over 1,400 large

customers…

…from 75 countries

…representing diverse

range of end-customer

industries

…with low customer

concentration

…and balanced contract /

spot sales structure

Customer Concentration(1) Contract / Spot Structure of Sales(1)

3%

6%

8%

10%

13%

18%

28%

40%

41%

54%

Basic polymers

Plastics and organicsynthesis products

Intermediates andother chemicals

Synthetic rubbers

Energy products

Top-10 Largest customer

2014 2014

67%

37%

57% 39%

33%

63%

43% 61%

Energy Basicpolymers

Syntheticrubbers

Plastics andorganic

synthesisSpot Contract

49

36

8 6 1

21

19

10 6 3

13

11

8

6 3

Total Group Sales Breakdown

Other

Asia

CIS

Europe

Russia

Intermediates and

other chemicals

%

LPG

Naphtha

Natural gas

Basic polymers

Synthetic

rubbers

Plastics and

organic

synthesis

products

MTBE and

other fuels

Processing services

and other sales

Raw

NGL

2014

%

By product By region


(1) Excluding naphtha trading operations. 15

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Continued macroeconomic storm in H1‟15

Collapsed prices for oil (-46.8% y-o-y) and majority of derivative

products (in USD terms)

3.5% y-o-y GDP decline in Russia; decelerating GDP growth in

China (7.0% y-o-y); resumed growth in EU GDP (1.4% y-o-y) and

optimistic growth in US GDP (2.8% y-o-y)

Accelerating inflation in Russia (CPI of 15.3% y-o-y and PPI of

13.1% y-o-y in H1‟15)

Substantial RR depreciation against USD and EUR

RR on average lost 39.1% and 25.4% y-o-y of its value relative to

USD and EUR, respectively

Indexation of railway tariffs in Russia

10% tariff indexation by FTS(1) effective January 2015

13.4% increase in tariffs for LPG deliveries to export markets

effective August 2014

13.4% increase in tariffs for export deliveries for all types of products

effective January 2015

China Petrochemical Corporation (“Sinopec Group”) agreed to

acquire a strategic stake in SIBUR (September 2015)

Material progress on ZapSibNeftekhim (ZapSib-2) funding:

EUR 1,575 mln Hermes ECA-backed committed credit lines with a

tenor of 15 yrs opened to fund German EP contracts; EUR 115 mln

drawndown (March 2015)

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 (September 2015)

USD 1.75 bln may be raised from the NWF(2) within RDIF‟s quota in

NWF

Additional tranche to be provided by RDIF, international co-

investors and commercial banks

SIBUR ratings affirmed

Ba1/Moody‟s (March 2015)

BB+/Fitch (February 2015)

Tobolsk-Polymer (500 ktpa of PP) ramp-up: average capacity load at

86% in H1‟15

Gazprom Neft and SIBUR commissioned Yuzhno-Priobskiy GPP,

(900 mcmpa of APG) (September 2015)

BoD approval of SIBUR 2015 CapEx plan at RR 64.7 bln (March

2015)

KEY HIGHLIGHTS

March 2014: acquisition of a 49% stake in Yugragazpererabotka and

new commercial agreements with Rosneft

RR 52,773 million in non-cash gain

Increase in debt to fund the transaction

The final USD 1.0 bln paid in H1‟15; USD 0.6 bln paid in March 2014

Simultaneous decrease in naphtha revenues and goods for resale in

OpEx on termination of trading operations via Ust-Luga in 2015

External Environment SIBUR Key Developments

One-off Factors

(1) Federal Tariff Service, which functions were transferred to the Federal Antimonopoly Service as of 21 July 2015.

(2) National Wealth Fund. 17

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H1 2015 KEY OPERATIONAL AND FINANCIAL HIGHLIGHTS

Raw NGL fractionation volumes increased by 26.5% y-o-y to 3.8 mt(1)

LPG production volumes increased by 35.4% y-o-y to 3.2 mt(1)

LPG sales volumes increased by 15.8% y-o-y to 2.0 mt

Petrochemical products sales volumes increased by 30.0% y-o-y to 1.3 mt

PP production increased by 69.5% y-o-y to 285.2 kt

Synthetic rubber production increased by 20.4% y-o-y to 221.4 kt

Operational

Results

Financial

Results

Revenue increased by 5.6% y-o-y to RR 181.4 bln

EBITDA increased by 30.6% y-o-y to RR 64.6 bln, for an EBITDA margin of 35.6%

Petchem EBITDA increased 4.9x y-o-y, for petchem EBITDA margin up to 31.4%

Operating cash flows before working capital changes increased by 28.8%

CapEx increased by 15.1% y-o-y to 30.5 bln

Net Debt to EBITDA at 1.99x as of 30 Jun’15 (1.76x in USD terms) vs. 1.74x as of 31 Dec’14

Notes:

(1) Including volumes under processing arrangements.

18

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0.6%

(3.5%)

35.0

57.4

H1 2014 H1 2015

10.0%

24.7%

H1 2014 H1 2015

9.2%

13.1%

H1 2014 H1 2015

7.8%

15.3%

H1 2014 H1 2015

MACRO ENVIRONMENT

Russian GDP Growth(1) Consumer Price Index (y-o-y)(1) Producer Price Index (y-o-y)(1)

Average Exchange Rate(2) Transportation Tariffs Indexation

Source:

(1) Russian Federal State Statistics Service

(2) CBR

+64.1%

RR / USD

32.7 33.6

31 Dec'13 30 Jun'14

EOP Exchange Rate(2)

RR / USD

56.3 55.5

31 Dec'14 30 Jun'15

(1.3%)

H1 2014 H1 2015

2.8%

Domestic deliveries

Export deliveries

19

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0.8

1.0

1.2

1.4

1.6

1.8

2.0

H1 2014 H1 20152-ethylhexanol Expandable polystyrene

MEG Butyl acrylate

PET

0.4

0.8

1.2

1.6

2.0

2.4

2.8

H1 2014 H1 2015Styrene-butadiene rubber Natural rubber

Butadiene Nitrile butadiene rubber

Styrene

0.04

0.05

0.06

0.07

0.08

0.09

0.10

0.2

0.4

0.6

0.8

1.0

1.2

H1 2014 H1 2015Brent NaphthaLPG CIF ARA (large) MTBELPG DAF Brest Natural gas (RHS)

(24.1%)

(48.0%)

(22.0%)

(31.5%)

0.8

1.1

1.4

1.7

H1 2014 H1 2015

PP LDPE

Energy Products Basic Polymers

(46.8%) (45.7%)

(17.9%)

(22.2%)

Synthetic Rubbers Plastics & Organic Synthesis

(37.5%)

(23.5%)

(18.4%) (35.3%)

(21.7%)

(31.7%)

‟000 USD per tonne (avg. for the period)

‟000 USD per thousand cubic metres of natural gas (avg. for the period)




(23.3%)

(6.5%)

(51.2%) (53.4%)

MARKET ENVIRONMENT(1)

Source: Argus, Platts, Bloomberg, ICIS, Chemease, Malaysian Rubber Board, Federal Tariff Service of Russian Federation

Notes:

(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. 20

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1.5 1.8

H1 2014 H1 2015

+20.2%

(35.6%)

3.8

2.3

H1 2014 H1 2015

(39.9%)

1.4 1.1

H1 2014 H1 2015

(20.4%) 1.1 1.0

H1 2014 H1 2015

(4.6%)

SIBUR FINANCIAL SUMMARY(1)

EBITDA

EBITDA

Operating Cash Flow

Operating Cash Flow

Revenue Investing Cash Flow(3)

Investing Cash Flow(3)

49.5 64.6

H1 2014 H1 2015

+30.6%

RR bln

USD bln

171.7 181.4

H1 2014 H1 2015

RR bln

+5.6%

4.9

3.2

H1 2014 H1 2015

USD bln USD bln USD bln USD bln

133.6 131.7

H1 2014 H1 2015

(1.4%)

RR bln

37.1 58.1

H1 2014 H1 2015

+56.6%

RR bln

(1) Values in USD estimated based on average RR/USD rate of 57.3968 and 34.9796 in H1 2015 and H1 2014, respectively.

(2) Operating expenses before equity-settled share-based payment plans.

(3) Includes CapEx and M&A.

Ru

ssia

n R

ou

ble

s

US

D E

qu

iva

len

ts (

illu

str

ati

ve

)

51.4

H1 2014 H1 2015

+97.3%

RR bln

Revenue

Net Operating Expenses(2)


– Naphtha trading operations via Ust-Luga – Payments for Yugragazpererabotka acquisition – Placement of deposits

101.5

21

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22

11

8 7

17

14

10

7 4

REVENUE STRUCTURE AND DYNAMICS

52

32

9 5 2

Asia

Europe

CIS Other

Russia

%

By region Revenue Split by Region Revenue Split by Product

H1 2015

%

H1 2015

171.7 181.4

H1 2014 H1 2015

RR bln

Total Revenue

+5.6%

59.9

86.8

H1 2014 H1 2015

107.4 87.5

H1 2014 H1 2015

(18.6%) +44.9%

RR bln

Energy Products Petrochemical Products

RR bln

Intermediates and

other chemicals

LPG

Naphtha

Natural gas

Basic polymers

Synthetic rubbers

Plastics and organic

synthesis products

MTBE and

other fuels

Processing services

and other sales

– Trading operations via Ust-Luga

22

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REVENUE DYNAMICS BY PRODUCT GROUP

9.0 10.2

H1 2014 H1 2015

8.4 12.9

H1 2014 H1 2015

21.4

31.0

H1 2014 H1 2015

13.5 17.4

H1 2014 H1 2015

17.6 20.1

H1 2014 H1 2015

39.4 39.2

H1 2014 H1 2015

16.7

25.5

H1 2014 H1 2015

Natural gas

Synthetic Rubbers Plastics & Organic

Synthesis

MTBE

Intermediates & Other

RR bln

(0.3%)

+14.3% +13.3%

+29.2%

+45.3%

+53.7%

LPG

Basic Polymers

5.2 0.9

H1 2014 H1 2015

Raw NGL

(82.7%)

H1 2014 H1 2015

Other Revenue

+61.7%

4.4 7.1

RR bln RR bln RR bln

RR bln RR bln RR bln RR bln RR bln

+52.6%

34.2

15.1

H1 2014 H1 2015

Naphtha

(56.0%)

RR bln

– Trading operations via Ust-Luga

23

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1,151

581

H1 2014 H1 2015

Sales volumes, ‟000 tonnes

Change in effective avg. selling price, %

1,753 2,030

H1 2014 H1 2015

KEY ENERGY PRODUCTS: SALES VOLUMES AND PRICE DYNAMICS

LPG

+15.8%

(14.0%)

Sales volumes,‟000 tonnes


Key Factors

LPG:

Higher sales volumes on

organic growth in production following the launch of integrated feedstock

processing and transportation infrastructure

…despite lower selling prices largely attributable to

lower market prices for majority of products (in USD terms)

…partially compensated by substantial RR depreciation, longer delivery

basis for trading volumes and zeroed export duties

Natural gas:

Increase in natural gas sales volumes due to consolidation of 100%

production at GPPs of Yugragazpererabotka following its acquisition

Naphtha:

Lower sales volumes on termination of trading activities via Ust-Luga in 2015

Lower selling prices attributable to lower market prices for majority of

products (in USD terms), partially compensated by lower export duties

Naphtha

(12.7%)

(49.6%)

Trading operations via Ust-Luga

7,354 8,552

H1 2014 H1 2015

(1.7%)

Natural Gas

+16.3%

Sales volumes, mln cubic metres


24

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Key Factors


177

281

H1 2014 H1 2015

+58.5%

(3.0%)

PETROCHEMICALS: SALES VOLUMES AND PRICE DYNAMICS




Basic Polymers

304 375

H1 2014 H1 2015

+23.3%


+23.8%

Synthetic Rubbers

178 212

H1 2014 H1 2015

+8.4%



+19.2%

Plastics & organic synthesis:

Higher sales volumes largely due to

higher PET and BOPP-film production following

capacity expansions and…

…increase in glycols production from a low base

of H1‟14 resulted from lengthy shutdowns in

Kstovo and Dzerzhinsk

Decline in international market prices for majority of

products mitigated by substantial RR depreciation

Basic polymers:

Higher sales volumes due to growth in PP

production thanks to Tobolsk-Polymer ramp-up

Higher PP and LDPE prices largely attributable to

weak RR despite lower international market prices

Synthetic rubbers:

Increase in sales volumes primarily due to

higher capacity load on improved economics

attributable to RR depreciation and lower

feedstock prices…

…despite continuous negative pricing trend

Intermediates & other chemicals:

Increase in sales volumes due to

higher ethylene, propylene and ethylene oxide

production following capacity expansions…

…and launch of ethylene sales to RusVinyl…

…as compared to low base of H1‟14 due to

lengthy shutdowns in Kstovo and Dzerzhinsk

372

473

H1 2014 H1 2015

Plastics & Organic Synthesis

+27.2%

+14.3%



25

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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 railway tariff indexation,

RR depreciation, longer delivery distances and higher transported volumes

Higher D&A expenses due to

commissioning of new large-scale facilities and amortisation of intangible

assets related to APG supply contracts between SIBUR and Rosneft

Increase in staff costs on change of perimeter

Increase in energy & utilities expenses due to Yugragazpererabotka

consolidation from March 2014

Higher feedstock & materials on growth in APG purchases following the

acquisition of Yugragazpererabotka and new terms of contracts with

Rosneft, partially compensated by lower PP purchases and recoverable

excise on paraxylene


(2) Transportation, logistics and rent.

NET OPERATING EXPENSES STRUCTURE AND DYNAMICS


Y-o-Y dynamics

133.6 131.7

H1 2014 H1 2015

RR bln

31

21

3 13

12

11

5 2 2

Feedstock &

materials

Transportation &

logistics Energy &

utilities

Staff costs

Depreciation &

amortisation

%

Goods for resale

Structure

78% 73%

(1.4%)

Key Factors

– % of revenue x%

H1 2015

Repairs & maintenance Other

Rent

Depreciation & Amortisation

RR bln

11.3 14.9

H1 2014 H1 2015

+31.6%

7% 8%

38.9 39.4

H1 2014 H1 2015

Feedstock & Materials and

Recoverable Excise RR bln

+1.3%

23% 22%

15.0 16.8

H1 2014 H1 2015

Energy & Utilities

+11.9%

9% 9%

RR bln

H1 2014 H1 2015

32.3 24.3

Rent expenses

Transportation & logistics

Transportation & Rent(2)

RR bln

+32.8%

14% 18%

22.0

6.0

H1 2014 H1 2015

Goods for Resale

RR bln

(72.8%)

13% 3%

– Naphtha trading operations via Ust-Luga, ceased in 2015

13.1 15.4

H1 2014 H1 2015

Staff Costs

RR bln

+18.1%

8% 9%

+4.5%

Feedstock & Materials

Recoverable Excise

26

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EBITDA STRUCTURE AND DYNAMICS

EBITDA Dynamics

Increase in EBITDA by 30.6% y-o-y to RR 64.6 bln on

a fivefold increase in petchem segment EBITDA due to

(i) launch of Tobolsk-Polymer

(ii) lower feedstock costs for petchem production on the back of

declining prices for energy products

(iii) expanded production compared to lengthy maintenance

shutdowns in H1‟14

…partially offset by lower Feedstock & Energy EBITDA due to

collapsed prices for oil derivative products

EBITDA margin of 35.6% in H1‟15

EBITDA and EBITDA Margin by Segment

38.1

28.9

(2.4)

64.6

47.4

5.9

(3.8)

49.5

Feedstock &Energy

Petchem

Unallocated

Total EBITDA

RR bln

49.5 (9.3)

23.0 1.4 64.6

EBITDAH1 2014

F&E Petchem Unallocated EBITDAH1 2015

37.4%

44.4%(1)

31.4%

9.1%

35.6%

32.4%(1)

H1 2015 H1 2014

– EBITDA margin x% (1) Adjusted for low-marginal naphtha trading operations via Ust-Luga transshipment facility, ceased in 2015.

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Net cash from operating activities increased

by 56.6% y-o-y on

higher EBITDA

lower income tax paid as we have utilised

prepayments accumulated during 2014…

…partially offset by negative impact from

WC changes

Net cash used in investing activities

increased by 98.9% y-o-y on

final tranche payment for the acquisition

of Rosneft‟s 49% stake in

Yugragazpererabotka

higher CapEx

Net cash received from financing activities

increased by 35.9% y-o-y on

new borrowings to fund the final tranche

for the acquisition of a 49% stake in

Yugragazpererabotka and continuing

CapEx

CASH FLOW STATEMENT HIGHLIGHTS

Six months ended

30 June Change

% RR mln, except as stated 2015 2014

Net cash from operating activities 58,059 37,071 56.6%

Operating cash flows before WC changes 63,460 49,281 28.8%

Changes in working capital (3,341) (2,413) 38.5%

Income tax paid (2,060) (9,797) (79.0%)

Net cash used in investing activities, including (102,288) (51,420) 98.9%

Purchase of PPE (30,537) (26,520) 15.1%

Acquisition of interest in subsidiaries, net of cash

acquired (61,727) (20,666) 198.7%

Placement of deposits (8,520) - n/m

Net cash from financing activities, including 28,750 21,156 35.9%

Net proceeds from debt 52,458 24,898 110.7%

Dividends (9,629) (6,383) 50.9%

Payment of bank fees (7,964) (115) n/m

Effect of exchange rate changes on cash and cash

equivalents (2,291) 26 n/m

Net (decrease) / increase in cash and cash

equivalents (17,770) 6,833 n/m

Key Developments Key Highlights

28

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21

6

73 23.9

76.3

43.1

73.1

48.2

27.0

2015 2016 2017 2018 2019 After2019

1 Sep‟15 RR bln

Debt Maturity Profile(2)(3) Debt Currency Split(3)

1 Sep‟15

%

DEBT STRUCTURE AND MATURITY PROFILE Key Highlights

Notes:

(1) Interest represents accrued interest, i.e. includes interest expense and capitalised interest.

(2) Loans denominated in USD and EUR are converted into RR at RR/USD and RR/EUR FX rates

as of the respective date.

(3) Unaudited data, excluding non-market debt.

USD RR EUR

Total debt increased by 23.2% YTD primarily due to

new borrowings to fund the acquisition of a 49% stake in

Yugragazpererabotka

Decrease in cash balances accumulated for the repayment of

USD 1 bln for Yugragazpererabotka acquisition

(fully paid in April 2015)

Net debt increased by 31.7%

As of 30 June 2015, all of the debt was unsecured

RR bln, except as stated 1 Sep 2015(2)(3) 30 Jun 2015

Change, %

1 Sep vs 30 Jun

Total debt 291.6 254.1 14.8%

Maturity profile

Short-term 93.4 93.0 0.4%

Long-term 198.2 161.1 23.0%

Currency split

USD 213.6 175.4 21.8%

RR 60.0 65.3 (8.1%)

EUR 18.0 13.3 35.3%

Credit lines 241.6 209.2 15.5%

Committed 136.1 116.8 16.5%

Uncommitted 105.5 92.4 14.2%

RR bln, except as stated 30 Jun 2015 31 Dec 2014 Change, %

Debt 254.1 206.3 23.2%

Cash & cash equivalents 9.9 27.7 (64.2%)

Bank deposits 9.0 - n/m

Net debt 235.2 178.6 31.7%

Average loan tenor (years) 2.5 2.5

Available credit lines 209.2 135.3 54.6%

Debt / EBITDA 2.15x 2.01x

Net debt / EBITDA 1.99x 1.74x

Net debt / EBITDA (in $) 1.76x 1.19x

EBITDA / Interest(1) 9x 16x

Key Figures

29

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30

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Continued macroeconomic storm in 9M‟15

Collapsed prices for oil (-48.2% y-o-y) and majority of derivative

products (in USD terms)

3.7% y-o-y GDP decline in Russia; decelerating GDP growth in

China (6.9% y-o-y); resumed growth in EU GDP (1.7% y-o-y) and

optimistic growth in US GDP (2.5% y-o-y)

Accelerating inflation in Russia (CPI of 15.7% y-o-y and PPI of

12.6% y-o-y in 9M‟15)

Substantial RR depreciation against USD and EUR

RR on average lost 40.3% and 27.6% y-o-y of its value relative to

USD and EUR, respectively

Indexation of railway tariffs in Russia

10% tariff indexation by FTS(1) effective January 2015

13.4% increase in tariffs by the Russian Railways for LPG deliveries

to export markets effective August 2014

13.4% increase in tariffs by the Russian Railways for export

deliveries for all types of products effective January 2015

7.5% indexation of natural gas prices by FTS(1) effective July 2015

SIBUR sold a terminal in the commercial port of Ust-Luga on the

Baltic Sea to a consortium comprising RDIF and international

investors; ceased consolidating in November 2015

China Petrochemical Corporation (“Sinopec Group”) agreed to

acquire a strategic stake in SIBUR

Material progress on ZapSibNeftekhim (ZapSib-2) funding:

EUR 1,676 mln Hermes ECA-backed committed credit line with a

tenor of 15 yrs opened to fund German EP contracts; EUR 115 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 1.75 bln with a tenor of 15 yrs from the NWF(2) – placement

announced

Gazprom Neft and SIBUR commissioned Yuzhno-Priobskiy GPP,

(900 mcmpa of APG)

KEY HIGHLIGHTS

External Environment SIBUR Key Developments


(2) National Wealth Fund.

31

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9M 2015 KEY OPERATIONAL HIGHLIGHTS

APG processing volumes increased by 3.2%(1) y-o-y to 15.9 bcm

Raw NGL fractionation volumes(2) increased by 26.3% y-o-y to 5.7 mt

LPG production volumes(2) increased by 32.4% y-o-y to 4.8 mt

LPG sales volumes increased by 22.4% y-o-y to 3.1 mt

Petrochemical products sales volumes increased by 22.6% y-o-y to 2.0 mt

PP production increased by 45.8% y-o-y to 361.1 kt

Synthetic rubber production increased by 16.3% y-o-y to 306.1 kt

Operational

Results

Financial

Results

Notes:

(1) Including Rosneft’s share in the processing / production volumes of OOO Yugragazpererabotka in the first quarter of 2014.

(2) Including fractionation / production volumes under processing arrangements.

(3) Adjusted for estimated value of naphtha trading operations via Ust-Luga, ceased in 2015.

(4) 4.8% y-o-y increase to RR 276.5 bln, including naphtha trading operations.

(5) 17.8% y-o-y decrease to RR 134.4 bln, including naphtha trading operations.

Estimated(3) total revenue increased by 19.3%(4) y-o-y to RR 276.0 bln

Estimated(3) revenue from sales of energy products increased by 2.2%(5) y-o-y to RR 133.8 bln

Revenue from sales of petrochemical products increased by 40.8% y-o-y to RR 130.7 bln

Plastics and organic synthesis sales revenue increased by 44.6% y-o-y to RR 47.7 bln

Basic polymers sales revenue increased by 40.4% y-o-y to RR 36.7 bln

Synthetic rubbers sales revenue increased by 32.0% y-o-y to RR 26.6 bln

32

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0.7%

(3.7%)

35.4

59.3

9M 2014 9M 2015

3.5%

12.6%

9M 2014 9M 2015

8.0%

15.7%

9M 2014 9M 2015

MACRO ENVIRONMENT

Russian GDP Growth(1) Consumer Price Index (y-o-y)(1) Producer Price Index (y-o-y)(1)

Average Exchange Rate(2) Tariffs Indexation

Source:

(1) Russian Federal State Statistics Service

(2) CBR

+67.5%

RR / USD

32.7 39.4

31 Dec'13 30 Sep'14

EOP Exchange Rate(2)

RR / USD

56.3 66.2

31 Dec'14 30 Sep'15

9M 2014 9M 2015

+20.3%

+17.7% Indexation

Rate

Effective

Date

Description

13.4% Aug 2014 Railroad transportation

tariffs for LPG export

deliveries

10.0% Jan 2015 Railway Tariff

13.4% Jan 2015 Railroad transportation

tariffs for all export

deliveries

7.5% Jul 2015 Regulated natural gas

price

33

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

MARKET ENVIRONMENT(1)


Notes:

(1) Prices quoted in EUR or RR converted to USD at average FX rates for the respective periods.

0.02

0.04

0.06

0.08

0.3

0.6

0.9

1.2

9M 2014 9M 2015Brent NaphthaLPG CIF ARA (large) MTBELPG DAF Brest Natural gas (RHS)

(30.3%)

Energy Products

(48.2%) (47.5%)

1.0

1.1

1.2

1.3

1.4

1.5

1.6

9M 2014 9M 2015

PP LDPE

Basic Polymers


(19.1%)

(24.9%)

(24.4%)

(16.4%)

(30.1%)

(23.9%)

(31.0%)


‟000 USD per thousand cubic metres of natural gas (avg. for the period)

0.5

1.0

1.5

2.0

9M 2014 9M 2015

2-ethylhexanol Expandable polystyreneMEG Butyl acrylatePET



(35.8%)

0.4

0.8

1.2

1.6

2.0

2.4

2.8

9M 2014 9M 2015Styrene-butadiene rubber Natural rubber


Styrene

Synthetic Rubbers


(24.8%)

(43.9%)

(20.9%) (34.8%)

(11.2%)

(53.0%) (54.2%)

34

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

40

50

60

70

80

90

9M 2014 9M 2015

2-ethylhexanol Expandable polystyreneMEG Butyl acrylatePET


‟000 RR per tonne (avg. for the period)

MARKET ENVIRONMENT IN RR TERMS(1)


Notes:

(1) Prices quoted in EUR or USD converted to RR at average FX rates for the respective periods.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

15

25

35

45

9M 2014 9M 2015Brent NaphthaLPG CIF ARA (large) MTBELPG DAF Brest Natural gas (RHS)

+16.7%

Energy Products

(13.3%)

(12.1%)

20

40

60

80

100

9M 2014 9M 2015

PP LDPE

Basic Polymers


+35.6%

+25.7%

+26.6%

+40.0%

+17.1%

+27.4%

+15.6%


‟000 RR per thousand cubic metres of natural gas (avg. for the period)

+7.5%

20

40

60

80

100

120

140

160

9M 2014 9M 2015Styrene-butadiene rubber Natural rubber


Styrene

Synthetic Rubbers


+25.9%

(6.0%)

+32.5% +9.3%

+48.7%

(21.2%) (23.2%)

35

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

Notes:

(1) Values in USD estimated based on average RR/USD rate of 59.2777 and 35.3878 in 9M 2015 and 9M 2014, respectively.

9M 2014 9M 2015

(50.9%)

USD mln

(39.0%)

4,619.0

3,700.5

USD Equivalents(1) (illustrative)

ENERGY PRODUCTS:

SALES REVENUE

27.4 31.2

9M 2014 9M 2015

Natural gas

+14.1%

RR bln

7.7

2.2

9M 2014 9M 2015

Raw NGL

(70.7%)

RR bln

14.0 16.0

9M 2014 9M 2015

MTBE

+14.1%

RR bln

57.4 58.9

9M 2014 9M 2015

RR bln

+2.6%

LPG

21.5

9M 2014 9M 2015

Naphtha

(57.1%)

RR bln

+5.5%

Revenue excluding naphtha trading operations

131.0

9M 2014 9M 2015

(17.8%)

RR bln

+2.2%

Russian Roubles

163.5

134.4

54.0

23.2

2,266.9

36

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

9M 2014 9M 2015

9M 2014 9M 2015

+26.3%

4,534

5,726

9M 2014 9M 2015

+12.6%

9M 2014 9M 2015

+2.2%

ENERGY PRODUCTS:

PRODUCTION AND SALES VOLUMES, PRICE DYNAMICS

LPG

9M 2014 9M 2015

+22.4%

(16.2%)

Natural Gas

Naphtha

Volumes excl. naphtha

trading operations

(13.2%)

(50.6%)

+17.1%

9M 2014 9M 2015

+18.6%

3,290 3,900

Raw NGL

9M 2014 9M 2015

+1.2%

+12.8% 11,492

12,961

mln cubic metres

9M 2014 9M 2015

+12.6%

3,438 3,871

Change in effective average selling price (RR), %

11,966 13,469

Production Sales Production Sales

Production Sales Production Fractionation

‟000 tonnes ‟000 tonnes

‟000 tonnes Excl. fractionation volumes

under processing arrangements

+6.4%

3,122

2,551

1,105 1,081

1,817

899

37

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

0

20

40

60

80

100

120

0

200

400

600

800

1,000

1,200

LPG DAF Brest LPG price net of duty Brent (RHS)

Market prices vs. oil price

Oil price and export duties impact on product price

LOWER EXPORT DUTIES AND RR DEPRECIATION SUPPORT ENERGY

PRODUCTS REVENUES ON DECREASING OIL


LPG DAF Brest case

0

20

40

60

80

100

120

0

200

400

600

800

1,000

1,200

LPG CIF ARA (large) LPG price net of duty Brent (RHS)


LPG CIF ARA case

Naphtha CIF ARA case

USD per bbl USD per tonne

USD per tonne USD per bbl USD per bbl USD per tonne

Rebased to 100

0

20

40

60

80

100

120

0

200

400

600

800

1,000

1,200

Naphtha CIF NWE Naphtha price net of duty Brent (RHS)

20%

60%

100%

140%

180%

220%

260%Brent Naphtha CIF NWE

LPG CIF ARA (large) LPG DAF Brest

MTBE Natural gas

USD / RR

38

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

26.1

36.7

9M 2014 9M 2015

PETROCHEMICALS:

SALES REVENUE

92.8

130.7

9M 2014 9M 2015

+40.8% 2,623.8

2,205.3

9M 2014 9M 2015

(15.9%)

33.0

47.7

9M 2014 9M 2015


+44.6%

RR bln

13.6 19.7

9M 2014 9M 2015


+45.3%

RR bln

Basic Polymers

RR bln

+40.4%

20.1 26.6

9M 2014 9M 2015

Synthetic Rubbers

+32.0%

RR bln

Notes:

(1) Values in USD estimated based on average RR/USD rate of 59.2777 and 35.3878 in 9M 2015 and 9M 2014, respectively.

RR bln

Russian Roubles

USD mln

USD Equivalents(1) (illustrative)

39

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

PETROCHEMICALS:

PRODUCTION AND SALES VOLUMES, PRICE DYNAMICS

Change in effective average selling price (RR), %

Basic Polymers

439 541

9M 2014 9M 2015

+23.2% 460

522

9M 2014 9M 2015

+13.5%

+23.7%

Production Sales ‟000 tonnes

Synthetic Rubbers

267 313

9M 2014 9M 2015

263 306

9M 2014 9M 2015

+16.3%

Production Sales

‟000 tonnes

+17.2%

+12.7%

573 696

9M 2014 9M 2015


+21.4%

+19.1%

645 769

9M 2014 9M 2015

+19.2%

Production Sales ‟000 tonnes

40

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

MARKET PRICES FOR PETROCHEMICAL PRODUCTS

Plastics & Organic Synthesis Products

Rebased to 100

Source: Argus, Platts, Bloomberg, ICIS, Malaysian Rubber Board, Chemease, Federal Tariff Service of Russian Federation

Basic Polymers

Rebased to 100

20%

40%

60%

80%

100%

120%

LDPE CFR China film, Spot

PP rafia China Main Port, Spot

Brent

Synthetic Rubbers Rebased to 100

20%

40%

60%

80%

100%

120%

Styrene butadiene rubber

Natural Rubber

Butadiene

Styrene

Brent

20%

40%

60%

80%

100%

120%

Polystyrene, EPS block FOB KoreaMEG Contract, FD NWE T22-ethylhexanol Spot, FD NWEButyl acrylate Spot, FD NWEPET FOB China, SpotBrent

41

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

KEY FEEDSTOCK PURCHASES

14.2 16.3

9M 2014 9M 2015

+14.8%

RR bln

APG Purchases

19.1 18.7

9M 2014 9M 2015

RR bln

NGLs Purchases

APG Purchasing Volumes NGLs Purchasing Volumes

1,940 1,992

9M 2014 9M 2015

+2.6% 13,947

15,603

9M 2014 9M 2015

+11.9%

mln cubic metres ‟000 tonnes

(2.0%)

42

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

21

6

73 10.7

74.0

41.6

70.6

48.1

26.1

2015 2016 2017 2018 2019 After2019

1 Nov‟15 RR bln

Debt Maturity Profile(1) Debt Currency Split(1)

1 Nov‟15

%

RR bln, except as stated

1 Nov

2015(1) 1 Sep

2015(1)

30 Jun

2015

Change, %

1 Nov 2015 vs

30 Jun 2015

Total debt 271.1 291.6 254.1 6.7%

Maturity profile

Short-term 84.4 93.4 93.0 (9.2%)

Long-term 186.7 198.2 161.1 15.9%

Currency split

USD 198.2 213.6 175.4 13.0%

RR 55.6 60.0 65.3 (14.9%)

EUR 17.3 18.0 13.3 30.1%

Credit lines 240.4 241.6 209.2 14.9%

Committed 150.9 136.1 116.8 29.2%

Uncommitted 89.5 105.5 92.4 (3.1%)

DEBT STRUCTURE AND MATURITY PROFILE

Key Highlights

Notes:

(1) Unaudited data. Loans denominated in USD and EUR are converted into RR at RR/USD and

RR/EUR FX rates as of the respective date.

(2) Last available 12-months EBITDA (30 Jun 2014 – 30 Jun 2015).

RR bln, except as stated

30 Sep

2015(1)

30 Jun

2015

31 Dec

2014

Change, %

30 Sep 2015 vs

31 Dec 2014

Total debt 278.2 254.1 206.3 34.8%

Cash, cash equivalents, bank

deposits 14.9 18.9 27.7 (46.2%)

Net debt 263.3 235.2 178.6 47.4%

Average loan tenor (years) 2.4 2.5 2.5

Available credit lines 255.3 209.2 135.3 88.7%

Net debt / LTM EBITDA 2.23x 1.99x 1.74x

Net debt / LTM EBITDA (in $) 1.66x 1.76x 1.19x

Key Figures

USD RR EUR

Net debt increased by 47.4% vs. 31 December 2014 in

RR terms (+25.2% in USD terms) due to cash outflow for

the acquisition of a 49% stake in Yugragazpererabotka and

substantial RR depreciation

Net debt increased by 11.9% vs. 30 June 2015 in RR terms

(-6.2% in USD terms)

Total debt increased by 34.8% vs. 31 December 2014

(+14.5% in USD terms)

Proceeds from sale of Ust-Luga sea terminal received in

November 2015 to reduce net debt

As of 30 September 2015, all of the debt was unsecured (2)

(2)

43

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

FINANCIAL CALENDAR – 2016:

BACK TO REGULAR REPORTING SCHEDULE

Event Date

FY 2015 Operational and Financial Results March 2016

Q1 2016 Operational and Financial Results June 2016

H1 2016 Operational and Financial Results September 2016

9M 2016 Operational and Financial Results December 2016

44

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

2

4

Skovorodino

Chayandinskoye

Kovyktinskoye

Blagoveshchensk Irkutsk

Amur GPP

(Gazprom) Amur Chemical

Plant (SIBUR)

WESTERN SIBERIA

EASTERN SIBERIA

Svobodny

Power of Siberia

Gas Pipeline

GAZPROM AND SIBUR – JOINT INVESTMENT PROJECT ON

CONSTRUCTION OF GAS PROCESSING AND CHEMICAL HUB IN AMUR

REGION

Notes: (1) Billion cubic metres. (2) Million cubic metres.

60 mcm(2)

48 bcm(1) Gas processing capacity

Helium production capacity

Products: methane, ethane,

propane, butane, pentane-

hexane fraction

45

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216







46

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

Currency

Nature

Currency

Nature

EXPOSURE TO OIL PRICES AND FX

H1 2015

RR bln

LPG: negative impact of lower oil prices…

somewhat compensated by lower

export duty…

and RR depreciation

Naphtha: negative impact of lower oil

prices, somewhat compensated by lower

export duty and RR depreciation

Natural gas

MTBE, raw NGL and other fuels

Plastics & organic synthesis

Basic polymers

Synthetic rubbers

Intermediates & other chemicals

Processing services & other sales

22%

Feedstock & materials: APG: indexed in line with FTS, some

contracts account for changes in

NGLs netbacks

NGLs priced at netbacks

Goods for resale: PP, LPG

Transportation, logistics & rent

Energy & utilities

Staff costs

D&A

Repairs & maintenance

Correlation

with Oil

Correlation

with Oil

US dollar Russian rouble

ILLUSTRATIVE

Revenue Categories Revenue Net OpEx Categories

3%

Net OpEx(1)


8%

11%

7%

17%

14%

10%

7%

4%

181.4

131.7

31%

25%

13%

12%

11%

5% 2%

47

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

0

20

40

60

80

100

120

0

200

400

600

800

1,000

1,200

LPG CIF ARA (large) LPG price net of duty Brent (RHS)

0

20

40

60

80

100

120

0

200

400

600

800

1,000

1,200

LPG DAF Brest LPG price net of duty Brent (RHS)

0

20

40

60

80

100

120

0

200

400

600

800

1,000

1,200

Naphtha CIF NWE Naphtha price net of duty Brent (RHS)

RR / USD – oil price negative correlation


LOWER EXPORT DUTIES AND RR DEPRECIATION SUPPORT ENERGY

PRODUCT REVENUES ON DECREASING OIL


LPG DAF Brest case


LPG CIF ARA case

Naphtha CIF ARA case

USD per bbl USD per tonne

USD per tonne USD per bbl USD per bbl USD per tonne

40

60

80

100

120

28

33

38

43

48

53

58

63

68

RR/USD (LHS) Brent (RHS)

USD per bbl

48

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

0%

20%

40%

60%

80%

100%

120%

Polystyrene, EPS block FOB KoreaMEG Contract, FD NWE T22-ethylhexanol Spot, FD NWEButyl acrylate Spot, FD NWEPET FOB China, SpotBrent

0%

20%

40%

60%

80%

100%

120%

Styrene butadiene rubber Natural Rubber

Butadiene Styrene

Brent

0%

20%

40%

60%

80%

100%

120%

LDPE CFR China film, Spot

PP rafia China Main Port, Spot

Brent0%

20%

40%

60%

80%

100%

120%

Brent Naphtha CIF NWE

LPG CIF ARA (large) LPG DAF Brest

MTBE Natural gas

Energy Products

MARKET PRICES VS OIL PRICE

Rebased to 100

Synthetic Rubbers

Rebased to 100

Plastics & Organic Synthesis Products

Rebased to 100

Basic Polymers

Rebased to 100

Source: Argus, Platts, Bloomberg, ICIS, Malaysian Rubber Board, Chemease, Federal Tariff Service of Russian Federation

49

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

MARKET PRICES

PRODUCT QUOTE SOURCE

ENERGY PRODUCTS

Oil Brent (USD per bbl) Bloomberg

Naphtha Naphtha CIF NWE Argus

LPG LPG CIF ARA (large) Argus

LPG DAF Brest Argus

MTBE MTBE FOB Rotterdam / FOB ARA Platts

Natural gas Natural gas wholesale price (for population) Federal Tariff Service of Russian Federation(1)

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

Nitrile-butadiene rubber NBR Lanzhou N41 Chemease

Butadiene Butadiene Contract, FD NWE ICIS

Styrene-butadiene rubber ESBR 1500 Spot, 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


50

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216







51

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

Fe

edsto

ck p

rocessin

gcapacity, T

ransport

ation

infr

astr

uctu

re

Petr

och

em

icals

Oth

er

TO

TA

L

INVESTMENT PROGRAMME

RR bln (excl. VAT)

2009 – 2014A(1)

337 in 6yrs

Transportation

infrastructure

Feedstock

processing

capacity

Petrochemicals Maintenance,

R&D, IT,

and other

TOTAL

35

152

149

Source: Company data

Notes:

(1) CapEx includes purchase of property, plant and equipment, as well as purchase of intangible assets and other non-current assets.

RR 65 bln (excl. VAT) investment programme approved by SIBUR BoD for 2015

52

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

2014

STRATEGY IMPLEMENTATION: ACHIEVED RESULTS

Throughput capacity: up to 4.8 mtpa up to 8.0 mtpa

Fractionation capacity: 3.8 mtpa 6.6 mtpa (up to 8.8 mtpa)

Polymers capacity: – 500 ktpa

Raw NGL pipeline: 1,168 km 2,268 km

Monomers(1) capacity: 423 ktpa 995 ktpa

2007

Notes:

(1) Includes butadiene, isobutylene, IIF (Isobutane-isobutylene fraction), propylene.

APG processing capacity: 15 bcm 23 bcm

53

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

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

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)

Newly Constructed Raw NGL Pipeline

Notes: (1) Gas processing plant. (2) Gas condensate plant.

SIBUR old raw NGL pipeline

SIBUR newly constructed raw NGL pipeline

Commissioning date

YAMAL-NENETS

AUTONOMOUS AREA

KHANTY-MANSI

AUTONOMOUS AREA

Purovsky GCP

(NOVATEK) Gubkinskiy

GPP

Muravlenkovskiy

GPP Vyngapurovskiy

GPP

Nyagan GPP

Nizhnevartovskiy

GPP

Belozerniy

GPP

Yuzhno-Balykskiy

GPP

Tobolsk-Neftekhim

Tobolsk-Polymer

PYT-YAKH

TOBOLSK

PUROVSK

NOYABRSK

TYUMEN REGION

2005

2011

1989

2009

2009

2001 2009

1981

54

0.128.128

153.204.0

128.128.128

208. 208.208

245.138.31

192.0.0

242. 242. 242

255.192.0

229.242.242

178.210.216

STRATEGY IMPLEMENTATION RESULTS:

NEW GAS FRACTIONATION UNIT (GFU) AT TOBOLSK-NEFTEKHIM

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

Key Existing Facilities

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

Production Scheme

Isobutane

Raw NGL

Butane

MTBE

Butadiene

Isobutylene

IIF

150

195

207

6.6 mtpa

Dehydro-

genation

Dehydro-

genation

MTBE

Production

83

GFU

LPG, naphtha

Methanol

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STRATEGY IMPLEMENTATION RESULTS:

TOBOLSK-POLYMER POLYPROPYLENE PLANT

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)

Production Scheme

Propane Raw NGL Propylene

510 ktpa

Dehydro-

genation PP-500

TOBOLSK-POLYMER

Project Description 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

Strategic Importance for Russia

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

GFU

6.6 mtpa 612 ktpa

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SIBUR AND ROSNEFT –

NEW FRAMEWORK FOR LONG-TERM COOPERATION

Acquisition of Control in Yugragazpererabotka 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 a 49% interest in Yugragazpererabotka

from Rosneft Group completed on 6 March 2014

Deal value of USD 1.567 bln in cash

USD 0.567 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

Notes:

(1) Natural gas produced at Nizhnevartovskiy GPP and Belozerniy GPP.

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)

Impact on SIBUR Financials

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YUGRAGAZPERERABOTKA TRANSACTION IMPLICATIONS

SIBUR purchases 51% of volumes supplied

to Yugragazpererabotka GPPs, primarily

from Rosneft

Rosneft is responsible for the remaining

49% of volumes

APG

SIBUR purchases 100% of volumes supplied

to Yugragazpererabotka GPPs, primarily

from Rosneft

Rosneft sells all volumes to SIBUR

APG purchasing volumes and costs

Pre Transaction Post Transaction Impact on SIBUR

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 Raw NGL

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 Natural Gas

OpEx (other than feedstock)

Processing fee

Non-cash gain on equity interest(2)

SIBUR pays to Yugragazpererabotka a

processing fee reflected in OpEx as 3rd

party processing

100% OpEx consolidated

P&L(1)

CF SIBUR finances its share of

Yugragazpererabotka CapEx via

loans issued / investments in JVs

100% CapEx consolidated CapEx

Loans issued / investments in JVs

SIBUR’s 51% interest is accounted for as

Investment in JV

100% consolidated PP&E, goodwill, other non-current assets

Accounts payable, total debt

BS

Notes:

(1) Items other than revenue and feedstock costs.

(2) For the purpose of dividends calculation net profit will be adjusted for this charge.

Outstanding amount fully paid in H1’15

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INVESTOR RELATIONS CONTACTS

[email protected]

Phone: +7 (495) 777-55-00 (*39-47)

www.investors.sibur.com

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