investor day 2014 · 2000 2005 2010 2015 2020 2025 2030 mln plants under construction operating...

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Investor Day 2014

March, 2014

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Investor Day 2014

Agenda

Export

Alexander Medvedev

Deputy Chairman of Gazprom Management Committee

CEO of Gazprom Export

Strategy

Finance

Dmitry Lyugai

Member of Gazprom Management Committee

Head of the Prospective Development Department

Andrey Kruglov


Head of the Department for Finance and Economics

Gazprom Neft Gazprom Power Generation

Denis Fedorov

Head of Gazprom Directorate for Development of Power

and Heat Generation

CEO of Gazprom Energoholding

Alexei Yankevich

Member of the Management Board of Gazprom Neft

Deputy CEO for Economics and Finance

of Gazprom Neft

1

Presentation of gas business

Transportation Oleg Aksyutin


Head of the Gas Transportation, Underground Storage

and Utilization Department, CEO & Executive Member

of the BoD of South Stream Transport B.V.

Special sections

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Disclaimer

This presentation has been prepared by OJSC Gazprom (the “Company”), and comprises the slides for a presentation to investors concerning the Company.

This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any

shares or other securities representing shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be

relied on in connection with, any contract or investment decision.

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.

The following sources are used in the presentation: BP Statistical Review of World Energy 2013 (June 2013); IEA, World Energy Outlook 2013, New Policies Scenario (November 2013); CEDIGAZ Statistical Database (August 2013);

EIA, International Energy Outlook 2013, Reference case (July 2013); Wood Mackenzie; Platts; FactSet; Bloomberg

Calorific value of natural gas = 8,850 kcal/m3 (20 0С )

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Part 1. Strategy

Dmitry Lyugai


Head of Prospective Development Department

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Strategy - Investor Day 2014

World gas demand 2030

24%

33%

30%

4% 9%

23%

28% 26%

6%

17%

Gas OilCoal NuclearRenewables

SHARE OF NATURAL GAS IN WORLD TOTAL PRIMARY ENERGY CONSUMPTION NATURAL GAS CONSUMPTION BY REGION

2030 forecast

2012

26%

5%

15% 20%

12%

3%

19%

North America

Central and SouthAmerica

OECD Europe

Other Europe and Eurasia

Middle East

Africa

Asia Oceania

22%

5%

13%

17%

14%

4%

25%

2012

2030 forecast

3.6 tcm

4.6 tcm

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-500-400-300-200-100

0100200300400

NorthAmerica

Centraland SouthAmerica

OECDEurope

OtherEurope

andEurasia

MiddleEast

Africa Asia Australia NorthAmerica


OECDEurope

OtherEurope

andEurasia

MiddleEast

Africa Asia Australia

bcm

Global gas import/export in 2030

Europe, Asia – 2 main gas import regions CIS, Middle East, Africa, Australia – 4 exporting regions North America, Central and South America gas markets are self-sufficient

NATURAL GAS CONSUMPTION AND PRODUCTION BY REGION IN 2012 AND 2030

WORLD NET NATURAL GAS TRADE BY REGION IN 2012 AND 2030

0

200

400

600

800

1000

1200

NorthAmerica


OECDEurope

OtherEurope

andEurasia

MiddleEast

Africa Asia Australia NorthAmerica


OECDEurope

OtherEurope

andEurasia

MiddleEast

Africa Asia Australia

bcm

Consumption Production

2012 actual 2030 forecast

2012 actual 2030 forecast

net

imp

ort

n

et e

xpo

rt

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100

200

300

400

500

2010 2015 2020 2025 2030

bcm

78

74 74 73

0%

20%

40%

60%

80%

100%

2010 2015 2020 2025 2030

Gazprom at the Russian domestic market

TOTAL FINAL CONSUMPTION

22%

47%

19% 12% 19%

52%

18% 11%

2012

STRUCTURE OF GAZPROM’S GAS SALES REVENUE(1), 2012

Source: Base Prospectus. 1. Not including custom duties

GAS PRODUCTION STRUCTURE IN RUSSIA

Independent gas producers

Russian Energy Strategy target

GAS DELIVERIES TO RUSSIAN CONSUMERS *

288 290 275

683 795

815 2 373

2 745 2 961

0

500

1 000

1 500

2 000

2 500

3 000

3 500

0

300

600

900

2010 2011 2012

RR

/ 1

000

cm

bcm

; RR

bln

Domestic Market Volumes (bcm)

Revenue (RR bn)

Domestic Average Price (RR / 1 000 cm)

* - incl. gas purchases from other companies

310 350

19%

51%

19% 11%

2008

Gas

Oil Coal

Other

Energy Strategy of Russia Adopted

Gas

Oil Coal

Other

Gas

Oil Coal

Other

Gas

Energy Strategy of Russia

Project

Gas share stabilization in Fuel and Energy Balance

2030

20%

52%

15% 13%

Oil Coal

Other

51%

20%

29%

Europe

FSU Countries

Russia

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29%

0

100

200

300

2010 2015 2020 2025 2030

bcm

JSC "Gazprom" Other sources of gas

0

100

200

300

400

500

600

700

800

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

bcm

Europe: Gazprom’s traditional market

SHALE GAS IN EUROPE AND CIS

TURKEY 5*

UKRAINE 0* POLAND

49*

GREAT BRITAIN 4*

FORECAST – GAS PRODUCTION VS. CONSUMPTION IN EUROPE

207 517

GAZPROM’S SHARE AT THE EUROPEAN MARKET

Consumption

Production

2012 2030

■ regasification terminals network development ■ policy approach – diversification of suppliers and supply routes ■ regulatory frameworks in energy sector become tougher ■ policies on energy efficiency ■ renewable sources of energy subsidizing

■ decrease of indigenous gas production in Europe ■ no success in shale gas developments ■ slow down of nuclear energy development ■ increase of gas consumption in transportation sector ■ new sectors of gas consumption

GAZPROM’S PIPELINE GAS DELIVERIES TO EUROPE

Source: Wood Mackenzie, EIA, Platts, ERI RAS, IEA, IHS, Rystad Energy, BP

28% 26%

Production 0 bcm 5-60 bcm

2030

* - number of wells, end 2013

2013

Min

Max

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Gazprom: upstream development

Yubileynoye Urengoiskoye

Pestsovoye

Bovanenkovskoye Kharasaveiskoye

Severo-Kamennomysskoye Kamennomysskoye-sea

North of West Siberia and Yamal peninsula Fields

Kirinskoye

«Sakhalin-3»

Kirinskiy licensed section

Key Gazprom gas greenfields Field productivity

in 2014-2030 period, bcm/year

Urengoyskoye (achimov deposits) 24.7 Pestsovoye (neocomian-jurassic) 2 Yubileynoye (apt-albian, senomanian deposits) 1.75 Bovanenkovskoye 115 Kharasaveiskoye 32 Severo-Kamennomysskoye 16.1 Kamennomysskoye -sea 15.1 Kirinskoye 5.5 Kirinskiy licensed section 14.6 – 16.0

Chayandinskoye 25

Kovyktinskoye 35

RUSSIA

Pre-Yamal shelf Pechorskoye Sea shelf

Kovyktinskoye

Chayandinskoye

Eastern Siberia and Far East Fields

522 540 545 555 556 549 550 462 509 513 487

96% 79% 69%

105% 106% 108% 106% 102% 108% 140%

118%

-40

10

60

110

160

0

200

400

600

800

1 000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

%

bcm

Gas production % of gas reserves replenishment

0

200

400

600

800

2012 2020min

2030min

2020max

2030max

bcm

Other new fields

East Siberia and Far East fields

Yamal Megaproject

Operating fields

DYNAMICS OF PRODUCTION AND GAS RESERVES INCREMENT PROSPECTIVE SOURCES OF GAZPROM’S GAS PRODUCTION

Gas field Continental shelf area

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0

200

400

600

800

2000

2005

2010

2015

2020

2025

2030

mln

t/ye

ar Plants under construction

Operating plants

Consumption consensus forecast

Pessimistic consumption forecast

Optimistic consumption forecast

Forecast of LNG demand in the world

Gazprom LNG projects

Baltic LNG

Sakhalin-2

Vladivostok LNG

Vladivostok LNG ■ Capacity – 10 mln t/year

■ Date of commissioning – 2018 (1-st line)

■ Project status – feasibility study done (February 2013)

■ Targeted markets – Japan, Korea, China,

Taiwan, Singapore, India

Baltic LNG ■ Capacity – 10 mln t/year

■ Date of commissioning – 2019 (1-st line)

■ Project status – pre-feasibility stage

■ Targeted markets – Spain, Portugal, Great Britain,

Latin America, India, small-scale LNG

Source: IНS CERA, Wood Mackenzie, Pace Global, CEDIGAZ, Poten

Operating LNG plant Prospective LNG plant

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Gas infrastructure development

in Eastern Siberia and Far East regions

Trunk pipeline “Power of Siberia”

Transportation site Date of put into

operation (not earlier)

Length, km

Trunk pipeline “Power of Siberia” 2019 4,000

CHINA

Production sites Date of put into

operation (not earlier)

Plateau production, bcm /year

Chayandinskoye 2019 25

Kovyktinskoye (incl. Chikanskoye field) 2021 35

Fields Pipelines: existing under construction possible designed Operating lines of LNG plants LNG plants under construction

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Mutual interest in gas export contract conclusion

■ DIVERSIFICATION OF EXPORT MARKETS

■ POSSIBILITY OF GAS SALES AT THE PREMIUM MARKET (APR)

■ WELL DEVELOPED RESERVES BASE RESULTING FROM

EXPLORATION IN THE EAST

■ MONETIZATION OF GAS RESERVES IN THE EAST

■ GASIFICATION OF THE EAST SIBERIA AND FAR EAST

REGIONS IN PARALLEL

CHINA

■ EXPANSION OF TRADE AND ECONOMIC COLLABORATION BETWEEN RUSSIA AND CHINA, STRENGTHING THE COUNTRIES’ POSITIONS IN THE REGION AND WORLDWIDE

■ SWITCH FROM WESTERN TO EASTERN ROUTE OF GAS DELIVERIES DURING THE NEGOTIATIONS

RUSSIA

■ DYNAMIC GAS CONSUMPTION GROWTH IN THE COUNTRY

■ LIMITED RESOURCE BASE AT THE TARGETED RUSSIAN GAS MARKETS

■ DETERIORATION OF ENVIRONMENTAL SITUATION IN THE COUNTRY

■ HIGH CURRENT AND PROSPEKTIVE COST OF GAS IMPORT (PIPELINE AND LNG) FROM OTHER SOURCES

■ SIGNIFICANT PRICE GROWTH ON GAS CONSUMPTION IN THE DOMESTIC MARKET AS A RESULT OF PRICING REFORM IN CHINA

■ NO CONSIDERABLE PROGRESS IN SHALE GAS PRODUCTION

■ DIVERSIFICATION OF IMPORT GAS SOURCES

■ PROVISION OF THE COUNTRY’S ENERGY SECURITY BY FUEL ENERGY BALANCE VIA GAS

Logo “Year of China in Russia 2007” was used in this slide.

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35%

20%14%

3%

29%

Yamal Megaproject

Eastern Siberia and the FarEast

Reconstruction in Transport

Reconstruction s inProduction

Other projects within UGSS

Forecast of capital investments

1.UGS is underground gas storage UGSS is unified gas supply system

Structure of CAPEX by gas business segment

EXPLORATION

PRODUCTION

TRANSPORT

(incl. UGS1)

PROCESSING

52 %

34 %

8 %

6 %

Up to 960 bn RR p.a. average annual

Structure of CAPEX by major project

exploration; existing and new

production and transport projects,

processing and LNG projects

GAZPROM

DEVELOPMENT

PROGRAM FOR A

TEN-YEAR

PERIOD

INNOVATIVE

DEVELOPMENT

PROGRAM TO

2020

GAZPROM'S

INVESTMENT

PROGRAM

NPTR – Nadym-Pur-Taz Region

Перерисовать

NPRT Yamal South Stream Eastern Program LNG Projects

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Part 2. Transportation

Oleg Aksyutin


Head of the Gas Transportation, Underground Storage and Utilization

Department

CEO, Executive Member of the Board of Directors of South Stream Transport B.V

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Transportation - Investor Day 2014

Gas transportation system

Total pipelines’ length – 168.3 thousand km

Number of compressor stations - 222 units

Number of gas compressor units – 3,738 units

Gross installed capacity – 43,9 million kW

Number of gas distribution stations – 3,945 units

Average length of transportation for domestic market – 2,780 km

Average length of transportation for export – 3,430 km

NORWAY

OSLO

STOCKHOLM

RIGA

HELSINKI

Tallinn

VILNIUS PSKOV

KALININGRAD

SAINT PETERSBURG

MURMANSK

KOTLAS

CHEREPOVETS

GRYAZOVETC

SYKTYVKAR

KIROV

MOSCOW TORZHOK SMOLENSK

BRYANSK

KIEV

KURSK

TULA

YELETS

OSTROGOZHSK

ROSTOV-ON-

DON

KRASNODAR ARMAVIR

NEFTEKUMSK

ASTRAKHAN

MAKHACHKALA

MOZDOK

SUKHUMI

TBILISI

EREVAN

BAKU

Caspian

Sea

ASTANA

ORSK

ORENBURG

SARATOV

PETROVSK

ALGASOVO

RYAZAN

KAZAN

SAMARA UFA

NIZHNEKAMSK

IZHEVSK

EKATERINBURG

CHELYABINSK

TYUMEN

OMSK NOVOSIBIRSK

TOMSK

PROSKOKOVO

ABAKAN

KRASNOYARSK

ULAN-BATOR

NIZHNEVARTOVSK

BOGUCHANY

NIZHNYAYA

POIMA

BALAGANSK

IRKUTSK

CHITA

SKOVORODINO

BLAGOVESHCHENSK

BIROBIDZHAN

KOMSOMOLSK-

ON-AMUR KORSAKOV

KHABAROVSK

VLADIVOSTOK

PETROPAVLOVSK-

KAMCHATSKY

ANADYR

RUSSIA

KAZAKHSTAN

Sea of Japan

CHINA

ARKHANGELSK

NOVOKUZNETSK BARNAUL

URENGOY

UKHTA

MONGOLIA CHINA AZERBAIJAN

ABKHAZIA

GEORGIA

ARMENIA

SWEDEN

FINLAND

MINSK

SOBOLEVO

BIYSK

GORNO-

ALTAYSK

JAPAN

NORTH

KOREA

ESTONIA

UKRAINE

LATVIA

BELORUSSIA

LITHUANIA

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Development of gas transportation system

‘Bovanenkovo — Ukhta’ pipeline

length — 1,100 km design capacity — 115 bcm p.a.

first string – 2012 second string — 2017 (plan)

‘Ukhta — Torzhok’ pipeline

length — 1,300 km design capacity — 81.5 bcm p.a.

first string launching is scheduled for 2015

Offshore part of ‘South Stream’

length — 925 km design capacity — 63 bcm p.a.

first gas supplies are scheduled for the end of 2015

Onshore part of ‘South Stream’

length — 2,506 km 10 compressor stations with a

total capacity of 1,516 МW

project to be finalized in 2018

HELSINKI

TALLINN

VYBORG SAINT

PETERSBURG

LITHUANIA VILNIUS

BELORUSSIA

RIGA

MINSK

TORZHOK MOSCOW

VOSKRESENSK

KAZAN UFA ASTANA

KAZAKHSTAN

TYUMEN

PERM

YUGORSK

PEREGREBNOYE

UKHTA

BARENTS SEA

NADYM

SURGUT

URENGOY

RUSSIA

MOLDOVA

UKRAINE

SLOVAKIA

AUSTRIA

GERMANY

SWITZERLAND

MONTENEGRO

SERBIA

MACEDONIA

ALBANIA

GREECE

BULGARIA

ROMANIA

Varna

CS Russkaya

ITALY

FRANCE

South Stream Transport B.V.

Anapa Zvornik

Svobodnica

Tarvizio HUNGARY

TURKEY

CROATIA SLOVENIA

BOSNIA AND

HERZEGOVINA

GRYAZOVETS

TULA

LATVIA

NORWAY

SWEDEN

FINLAND

ESTONIA

Yamal South Stream

‘South Stream’ pipeline route Russia – Bulgaria – Serbia – Hungary – Slovenia – Italy Branches To Croatia from Serbia To Republic of Srpska from Serbia

BOVANENKOVO

CS Pochinki

CS Mokshanskaya

CS Petrovsk

CS Zhirnovskaya

Projected CS

Existing CS

CS Volgogradskaya

CS Russkaya

Ukraine

Sea of Azov

Black Sea

CS Kubanskaya

CS Salskaya

CS Korenovskaya

CS Kazachya

CS Pisarevka

CS Shashtinskaya

RUSSIA

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Development of gas transportation systems

in Eastern Siberia and the Far East

Sakhalin – Khabarovsk – Vladivostok Power of Siberia

Length >1,800 km (1st section – 1350) 4,000 km

Capacity 30 bcm p.a. (1st section – 6) 61 bcm p.a.

Date of coming on stream 1st section - 2011 1st section – late 2019

1

2

3

4

Krasnoyarskiy

Irkutskiy

Yakutskiy

Sakhalin

1

2

3

4

Planned GPP and Gas

Chemical Complex

Fields

URENGOY

NIZHNEVARTOVSK

TYUMEN

OMSK

BARNAUL

NOVOSIBIRSK TOMSK

PROSKOKOVO

ABAKAN

KRASNOYARSK

BOGUCHANY

Yurubcheno-

Tokhomskoye Sobinsko-

Paiginskoye Chayandinskoye

Kovyktinskoye

BALAGANSK

IRKUSTK

SKOVORODINO

BLAGOVESHCHENSK

BIROBIDZHAN

OKHA

KOMSOMOLSK-

ON-AMUR KORSAKOV

KHABAROVSK

VLADIVOSTOK

NOVOKUZNETSK

CHINA

KAZAKHSTAN

CHINA

MONGOLIA

Malositinskoye UGS

SAKHALIN

Gas production centers

BIYSK GORNO-ALTAYSK

JAPAN

NORTH

KOREA

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Underground gas storage

Current underground gas storage facilities

Under-construction and planned facilities

of underground gas storage

Areas under exploration for underground

gas storage facilities

69.94 73.22 74.78

745.8

811.8

853.6

585.8 616

657.6

2013/2014F 2014/2015F 2015/2016F

Gas storage of Gazprom(1)

Operating reserve at the beginning of thewithdrawal season, bcm

Maximum daily production at the beginning of theseason, mmcm per day

Average daily production in December-February,mmcm per day

Underground gas storage

in Europe

2013F 2014F 2018F

Active volume, bcm 2.29 4.29 4.54

Daily capacity, mmcm per day 23.5 55.6 80.5

Arkhangelsk

Ukhta

Urengoy Moscow

Izhevsk

Kazan Surgut

Tyumen

Volgograd Tomsk

Novosibirsk Orenburg

Khabarovsk

Irkutsk

Saratov

Saint Petersburg Kaliningrad

BELORUSSIA

Minsk

1. Including gas storage in Belorussia

RUSSIA

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Gazprom energy efficiency improvement

7,3

7,96

17,6

Fuel and Energy resources

saving

Actually achieved savings in 2011-2013 – 7.3 mln toe

Reduction in specific gas

consumption for own process

needs and losses

Actually achieved reduction in 2011-2013 – 7.96%

Greenhouse gas emissions

reduction

Actually achieved reduction in 2011-2013 – 17.6 mln t

Target savings for the period till 2020 – 28.2 mln toe Target reduction for the period till 2020 – 11.4% Target reduction for the period till 2020 – 48.6 mln t

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Gas transportation system efficiency improvement

Increase of operating pressure up to 11.8 mPa

in the onshore of main gas pipelines and up to

22 MPа (at the offshore Nord Stream gas

pipeline)

Use of high-strength large diameter pipes with

flow coating

Use of tie-in pipeline under pressure technology

Gas pumping from linear parts of main gas

pipelines that are withdrawn for repair with the

use of transportable compressor stations

Use of renewable energy sources

Implementation of innovative technologies

31.7 30.9 30.5

29.6 29.4

25.4

27.6 27.9

25.5 25.3

20

25

30

35

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F

Specific gas consumption for process needs

Technological losses as a percentage of the

transported gas volume

cm/mmcm/km

0.86 0.7

0.51 0.47

0.46

0

0,5

1

2009 2010 2011 2012 2013F

%

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Part 3. Export

Alexander Medvedev


CEO of Gazprom export

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102,163,224

Export - Investor Day 2014

European Natural Gas Market Dynamics

Balance of European Gas Consumption

Source: IEA, Eurostat, Lloyds, GIE, Gazprom Export analysis, Gas calorific value: 1cm = 37 MJ

2012 2013

25.6% 30.0%

121.4 115.4

72.6 81.5

43.8 40.9

0

50

100

150

200

250

2012 2013

Norway Netherlands UK

+8.9

-2.9

-6.0

139.9

162.7

46.5 37.9

31.3 24.8

12.1 7.5

6.7 6.2

14.4 13.6

0

50

100

150

200

250

300

2012 2013

Gazprom Algeria, incl. LNG Qatar, LNGNigeria, LNG Libya, incl. LNG Other import deliveries

+22.9

307.0 311.6 288.4 292.3 288.1

258.2 298.2 267.6 254.5 253.0

565.2 609.8 556.0 546.7 541.0

0

200

400

600

800

2009 2010 2011 2012 2013E

Domestic production Imports (+balance of storage)Consumption

250.9 252.7

-20.9

bcm

Import Deliveries by Sources bcm

Share of Gazprom Deliveries in European Consumption

increased from 25.6% in 2012 to 30% in 2013

bcm Deliveries by Major European Producers

22

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Gazprom Sales to European and CIS Markets

100%

90,4% 90,3 90,2

90,6

88,3 88,5

86,0 86,2

90,8% 91,6%

84

86

88

90

92

94

96

98

100

102

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

%

Actual 2006-12 CERA (2013-01) CERA (2013-07) CERA (2013-11) PIRA (2012-3) PIRA (2013-7) PIRA (2013-10) CEDIGAZ - pessimistic (2013-6)CEDIGAZ - base (2013-6)

Gazprom Gas Deliveries to CIS and Baltics

138.6 150.0 139.9 162.7

9.5 6.6 11.1

11.0

302

383 385 387

250

300

350

400

450

500

0

60

120

180

2010 2011 2012 2013E

Export volumes Other deliveries Average export price

bcm $/mcm

68.0 71.1 64.4

56.1

235

298 308 274

200

250

300

350

400

0

20

40

60

80

2010 2011 2012 2013E

Volumes Average price

* European countries including Turkey except for CIS and Baltics

The Gap is Widening Between European Indigenous Production and Consumption

Under current market conditions

2014-2017 estimate for

gas deliveries to Europe is 155-160 bcma,

depending on weather

Gazprom Gas Deliveries to Europe* $/mcm bcm

148.1 156.6 151.0

173.7

23

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Hybrid Pricing - Cornerstone of the European Market

0

100

200

300

400

500

600MCM/d

0

2

4

6

8

10

12

14

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Jan-

10

Jul-1

0

Jan-

11

Jul-1

1

Jan-

12

Jul-1

2

Jan-

13

Jul-1

3

US

D p

er m

mbt

u

BAFA import price, Germany TTF (ENDEX), 1st monthSources: BMWi, Bloomberg

Integration of Contract Prices and Hub prices

Source: IEA

1998-2005

80-100MCM/d seasonal swing

2005-2013

100-220MCM/d seasonal swing

Gazprom is a major provider of supply flexibility to Europe Seasonal swing in Russian gas daily deliveries doubled from 1998 to 2013

• 75% of gas exported to Europe is oil-indexed

• Gas hub prices are not independent from oil-

indexed contract prices. The correlation

coefficient between hub prices and oil prices

moving average equals 0.85

• ACER November 2013 Market Monitoring Report

states that “Oil prices is still the main determinant

of wholesale gas prices in Europe…”(p.180)

Gas Hub and Oil-indexed Prices –

Still Related The correlation coefficient prove dependence

TTF from January 2010 to December 2013 versus: r

Brent 1st month futures 0.69

Brent 1st month futures - 3 months moving average 0.80



NBP from January 2010 to December 2013 versus: r

Brent 1st month futures 0.69




24

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224

Part 4. Finance

Andrey Kruglov Deputy Chairman of Gazprom Management Committee

Head of the Department for Finance and Economics

25

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224

Finance - Investor Day 2014

Gazprom continues to maintain its strong financial position

among Oil&Gas majors

Comparative Revenue, EBITDA, Net Income CAGR Top-5 Oil&Gas Majors by 2013E Net Profit(2)

USD bln

Source: Companies websites, Factset, Bloomberg as of February 20, 2014

1. Oil & Gas Majors are the top 10 oil and gas companies by market capitalization as of February 20, 2014

2. Based on companies’ data and broker consensus as of February 20, 2014; for Gazprom 9m2013 LTM

USD/boe

10%

8% 8%

12%

6%

4%

0%

2%

4%

6%

8%

10%

12%

14%

Revenue EBITDA Net income

CAGR of Gazprom for 2007-2012

CAGR of oil & gas majors on average for 2007-2012

0

5

10

15

20

25

30

35

40

2 3 4 5

(1)

USD bln

26

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Revenue diversification: new source of growth

63.3

81.8

87.3 91.0

0

10

20

30

40

50

60

70

80

90

100

2010 2011 2012 9m2013 LTM

Gas transportation Electricity and heat

Crude oil and gas condensate Refined products

Gas sales to Russia

11 12 13 15 15

17 18

8

10

12

14

16

18

20

2010 2011 2012 2013E 2014F 2015F 2016F

Gas Condensate Production(1)

+20%

1. Management estimates; excluding associate companies’ production

Net Sales USD bln

Astrahan

Novy Urengoy

4.7 Yamburg

5.5

3.7 0.3

Tomsk 0.1

Orenburg

Mn tonnes

Gas Condensate Production Sites

Mn tonnes

27

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


11% 10%

9%

7%

6%

3%

0%

2%

4%

6%

8%

10%

12%

Gazprom vs Russian Oil & Gas Majors Free Cash Flow Yield, 9m2013 LTM/2014(2)

26.9

43.6 43.1 44.3

7.7

8.3 3.4

10.8

0

10

20

30

40

50

60

2008-2009 2010-2011 2012 9m2013 LTM

Gazprom FCF Generation(1)

Cash Capital Expenditures Free Cash Flow

Sustainable free cash flow generation

USD bln

36.6

51.9

46.5

55.1

1. Period averages. 2013LTM = 9m2013+12m2012-9m2012 2. Five Russian oil and gas majors by capitalization as of 31 January 2014: Rosneft less increase in long term prepayments on oil supply agreements, Novatek, Lukoil, Surgutneftegaz, Tatneft

28

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Increase of Mineral Extraction Tax (MET) transparency:

transition to gas MET formula

147

237

509

602

693 717

556 590 674

718

0

200

400

600

800

1000

2010 2011 2012 2013 2014F 2015F

MET Rate Calculation*

Natural gas MET, Gazprom (RR/mcm)

Gas condensate MET, Gazprom (RR/1 ton)

RR

* Before 2012 MET rates for gas condensate were set at 17.5% of realization price

Gas MET formula

effective from July 1, 2014

Benefits

• Direct link of tax rates to average realized prices

• Smoothening the effects of gas tariffs growth

deceleration in Russia

• Tax breaks for key greenfields, depleted and

complex fields

• Higher stability of gas taxation

• Transparent rules for gas condensate taxation

700 686

1h2014 2h2014

Key MET tax breaks:

• Greenfields: Yamal and Gydan peninsula,

Irkutsk, Krasnoyarsk regions, Far East

• Depleted fields: depletion ratio over 70%

• Complex fields: Astrakhan region

• Deep layers: over 1,700 m deep

Gas MET = 15% * Price ratio * Complexity ratio + Transportation ratio

Condensate MET = 15% * Price ratio * complexity ratio

29

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


22,1

37,4

43,1 44,3

29,0

34,8

53,0

47,0

127%

118% 108%

124%

0%

20%

40%

60%

80%

100%

120%

140%

0

10

20

30

40

50

60

70

80

2006-2008 2009-2011 2012 9m2013 LTM

GazpromRussian oil majors aggregateGazprom self funding (OpCF/Cash CAPEX)

Capital Expenditures:

Gazprom vs Russian oil majors(1)

8,2

13,0 13,4 13,7

10,4 11,5

16,7

15,5

0

2

4

6

8

10

12

14

16

18

2008-2009 2010-2011 2012 2013E

Gazprom

Russian oil majors

Capex/hydrocarbon production:

Gazprom vs Russian oil majors(1)

USD bln

Source: Companies websites, media sources, Factset, Bloomberg as of February 6, 2014 1. Cash CAPEX; Russian oil & gas majors includes Lukoil, Surgutneftegas, Bashneft, Rosneft, TNK-BP, Tatneft and Transneft

USD/boe

CAPEX efficiency

30

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


0,0

10,0

20,0

30,0

40,0

50,0

2012 2013F 2014F

Gazprom Group CAPEX (1)

Gas Upstream

Gas Midstream

Gas Downstream

Oil

Power Generation

USD bln

42-43 43

1. Source: Management Estimates

Balanced CAPEX

35-42

2014 Priorities

Gas Downstream Gas condensate refining

Gas Midstream Bovanenkovo-Ukhta pipeline GTS Extension – Southern Corridor Long-term financial investments for the construction of the

South Stream pipeline outside Russia The reconstruction of the Petrovsk Pisarevka section of the

Urengoy Novopskov Other reconstruction and technical re-equipment of the GTS

Gas Upstream Bovanenkovo field Brown fields and Nadym-Pur-Taz region Field development projects abroad

Oil Novoportovskoe and Mesoyahinskoe fields

Power generation New capacity investments

31

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Hard currency(1) denominated revenues

Natural hedging against rouble volatility

Hard currency denominated CAPEX

Hard-currency denominated OPEX

6%

3%

5%

4%

2%

1%

1%

23%

20%

17%

6%

5%

1%

2%

4%

0% 25% 50% 75% 100%

Gas transportation

Gas production

Liquids production

Refining

Electricity

Gas deliveries

Gas storage

Others

Hard currency 22%

Roubles 78%

33%

15%

8%

7%

15%

7%

3%

2%

10%

0% 20% 40% 60% 80% 100%

Gas sales, Europe

Crude exports

Gas sales, ex.USSR

Domestic oil product sales

Gas sales, Russia

Electricity and heat

Transport

Other revenues

Hard currency 66%

Roubles 34%

1. Mainly US Dollars and euro

USD 55%

EUR 30%

Roubles 12%

Others 3%

Debt distribution by currency

1%

1%

2%

1%

1%

8%

7%

22%

10%

14%

2%

5%

6%

3%

15%

2%

0% 25% 50% 75% 100%

Other cash

Staff costs

Goods for resale

Repairs

Materials

Transit of gas and oil products

Taxes other than income

Gas and oil purchased Hard currency 43%

Roubles 57%

32

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Total and Net Debt(1)

1. Data are converted in USD using exchange rate RR/USD as of the end of the period 30.48 for 2010, 32.2 for 2011, 30.37 for 2012, and 32.35 in 9m2013

2. Excluding promissory notes

6.4%

2.7%

5.8%

1

3

5

7

9

2008 2009 2010 2011 2012 9m2013

Weighted average fixed interest rateWeighted average floating interest rateWeighted average interest rate

Top Russian borrower

Debt Maturity Profile(2)

28.6 32.1 35.2 35.7

14.6 15.7

14.2 17.7

0.6x 0.5x

0.7x 0.6x

-1

-0,5

0

0,5

1

0

20

40

60

80

100

2010 2011 2012 9m2013Total debtCash&Cash equivalents and restricted cashNet Debt/Adj.EBITDA LTM

USD bln

43.2

49.4 47.8

53.4

%

15% 24% 22% 22% 13%

17% 19% 16%

42% 38% 33% 36%

31% 21% 26% 26%

2010 2011 2012 9m2013

Less than 1 year 1-2 years 2-5 years More than 5 years

Cost of Debt Financing(2)

33

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


5.3% 4.8% 4.7% 4.7% 4.7% 4.3%

3.4% 2.6%

0%

2%

4%

6%

8%Dividend Yields of Major Oil & Gas companies, 2013F(2)

Dividend payments’ schedule of OAO Gazprom according to the amendments to the Federal Law on Joint-Stock Companies that are effective from 01.01.2014

3.85

8.97

5.99

6-8

0

3

6

9

12

2010 2011 2012 2013F

Dividend Per Share(1) RR / Share

1. Company operating data estimates

2. Dividend yield is defined as approved dividends for the period divided to the share price as of February 14, 2014; Source: Companies data, FactSet

Dividend payments to

nominees and trustees,

who are registered with

the Register of

Shareholders 10 to 20 days after AGM

June July

AGM (27June 2014)

Approval of Record date

for dividends payout

Dividend payments

to other persons

registered in the

Register of

Shareholders

not later than 10 working days not later than 25 working days

August

Record date

for dividends payout Record date for

AGM (8 March 2014)

May

Dividend payout

34

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


2014 Outlook

Value drivers:

Stellar growth in the European gas market

Improvement of the Russian gas market competitiveness

Outstanding growth of liquids in the production mix

Optimization of costs and financing solutions for upcoming projects

Compliance with best corporate governance standards

Robust financial performance

35

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224

Part 5. Gazprom neft

Alexei Yankevich Member of the Management Board,

Deputy CEO for Economics and Finance of Gazprom Neft

36

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224

Gazprom neft - Investor Day 2014

Investor day summary

Record Financial & Operating Results

Large scale deployment of new technologies

First Arctic Offshore Production

Refinery Quality Program Completion

Conversion Program at FEED Stage

Domestic Retail Efficiency Growth

Investments on Track

Dividends at 25% IFRS Payout

First Ever Interim Dividends

Net Debt / EBITDA not to exceed 1.5X

37

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Executing Strategic Goals

Increased stake in SeverEnergia to 40.2%

Expanded presence in Iraq (Halabja block acquisition)

Launched production at Prirazlomnoye

Signed a memorandum with Shell on development of liquids-rich

shale

Launched CPF and began deliveries of oil to condensate pipeline

at SeverEnergia

Entered development phase at Yuzhno-Kinyaminskoye field

Launched Yuzhno-Priobskaya gas compressor station

Completed quality program at all refineries

Expanded G-Drive portfolio to include gasoline 98, planning to

expand range of diesel fuels in 2014-2015

Expanded foreign jet fueling network to 125 airports (vs. 88 at

Jan 1, 2013)

Created a JV with Total to produce polymer-modified bitumen

under G-Way Styrelf brand

Acquired Russia's largest polymer modified bitumen plant

Initiated interim dividend program

38

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


1 200

1 343

61 114

91

1 000

1 050

1 100

1 150

1 200

1 250

1 300

1 350

1 400

YE2012 Groupproduction

Revisions Acquisi-tions(1)

YE2013

57,3 59,7 62,3

100,0

0

20

40

60

80

100

120

2011 2012 2013 2020

Targets on hydrocarbon production, refining, and marketing premium sales expected to be main vehicles for growth

Changes in PRMS (SPE) proved reserves, mmtoe

333% Reserves replacement ratio

Hydrocarbon Production, mmtoe

CAGR

+7%

Refining, mmt Optional

growth outside

Russia

Premium Channel Sales, mmt

1. Acquisitions include increase of share in Sever Energia

40,0

40,5 43,3 42,6

30,0

0

10

20

30

40

50

60

70

80

2011 2012 2013 2020

19,5 22,9 24,0

40,0

0

5

10

15

20

25

30

35

40

45

2011 2012 2013 2020

39

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


0,70

0,51 0,59

0,00

0,30

0,60

0,90

2011 2012 2013

160 362

176 296 177 917

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

200 000

2011 2012 2013

300 077 323 106

336 752

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

2011 2012 2013

1 031 794

1 232 649 1 267 603

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

2011 2012 2013

Strong record of financial results continued throughout 2013

Revenue, RUB mm Adj. EBITDA(1), RUB mm

Net Income, RUB mm Net Debt / EBITDA

1. EBITDA includes share of EBITDA of associates and joint ventures

Note: In accordance with the transition provisions of IFRS 11 Gazprom Neft has applied the new policy for interests in joint operations occurring on or after 1 January 2012. Gazprom Neft has assessed the nature of its joint

arrangements and determined them to be joint ventures, except for its investments in Tomksneft and Salym Petroleum Development, which were determined to be joint operations. For purposes of this presentation the metrics

Revenue and Net debt/EBITDA for Y2011 were restated to correctly compare data for 2011-2013.

+1%

40

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


22,8 21,4

14,2

21,6

25,1

18,2

0

5

10

15

20

25

30

Gazprom Neft Lukoil Rosneft*

2013 2012

24,2 23,1

18,8 19,8

23,7

19,6

0

5

10

15

20

25

30

Lukoil Gazprom Neft Rosneft*

2013 2012

17,4

11,7 11,1

19,4

15,3

12,4

0

5

10

15

20

25

Gazprom Neft Lukoil Rosneft

2013 2012

4.2

1.1

0.0


Operational and financial efficiency backed by industry-leading growth

Adj. EBITDA absolute 2013 Y-o-Y Growth, %

ROACE, % OCF/boe, USD/boe

Source: MD&A of Companies and INFOTEK

*includes TNK-BP

Adj.EBITDA/boe, USD/boe

41

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Combination of New Production and Legacy Fields Driving Growth

Orenburg

Traditional and new production centers in Russia

East Siberia:

Chonskiy Project & Kuyumba

Arctic Shelf:

Prirazlomnoye & Dolginsokye

North of YNAO:

SeverEnergia, Messoyakha &

Novoportovskoye

42

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Investment Decisions Reached at New Upstream Projects

Peak: 13 MMToe at 2022-2023

Completed first winter oil shipment

C1+C2 reserves: 27 MMtoe

Peak: 2.3 MMToe at 2018


Drilled 4 horizontal and 1 exploration

well

Peak: 12 MMToe at 2023

Completed first winter oil shipment

Production Profile, MMtoe

0

5

10

15

20

25

30

35

40

2013 2015 2017 2019 2021 2023 2025Kuyumba Novoport Messoyahkha Tsarichanskoye

Novoport Messoyakha Kuyumba Tsarichanskoye

141 140

124

0

20

40

60

80

100

120

140

160

Kuyumba Messoyahkha Novoport

2P reserves (PRMS), MMtoe

43

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Upstream Portfolio Expanding

Iraq

2013

February March April May June July August September October November December

Tomsk region

Partnership with Shell (KMPA)

SeverEnergia

Reserves (C1+C2): 1.7 bln toe

Startup: 2012


Increased stake to 40.2% Acquired

Yuzhno-Pudinskiy Block

Signed a memorandum

confirming the General

Agreement on Partnership in

exploration and development

of liquids-rich shales

Halabja block acquisition

Recoverable reserves: 79 MMToe

Startup: 2016


Reserves (C1+C2): 6 MMToe

Startup: 2016


Area of interest

44

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Production Increase Driven by Orenburg, Muravlenkovskoye,

SeverEnergia and Priobskoye

Average daily production Kboe/day

Hydrocarbon production

*Joint operations: proportionally consolidated entities (Tomskneft, SPD). ** Joint Ventures: Equity accounted entities (Slavneft, SeverEnergia)

45

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Technological Progress Driving Growth

The share of high-tech wells in total drilling in 2012-2013, increased from 4% to 35%

Horizontal wells drilled

Length of horizontal part up to 300m

3 stage hydrofracs

Length of horizontal part up to 800m

5-6 stage hydrofracs

Length of horizontal part up to

1,030m

9-10 stage hydrofracs

2011 2012 2013

2.7х

5.1х 4.8х

Multi-stage well fracking Multilateral wells drilled

46

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


First Arctic Offshore Production

Key events:

Completed necessary audits ahead of platform launch

Drilled first well with flow rate 1,750 tpd

The government granted export duty for the first oil

2014 plans:

The first oil shipment from Prirazlomnoye is expected in 1Q14

2,7

4,1

5,5

3,6

2,7 2,1

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Crude oil production, MMtonnes Recoverable reserves,

MMtonnes

Recoverable reserves (C1+C2): 74 MMTonnes

Startup: 2013

Peak: 5.5 MMTonnes at 2021

Prirazlomnoye Murmansk

Arkhangelsk

Naryan-Mar

Barents Sea

White Sea

Kara Sea

49

25

Crude oil, MMTonnes

С2

С1

47

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Refining throughput, MMTonnes

NIS

Slavneft

Moscow

Omsk

Peer comparison – Refining throughput

growth (CAGR) 2013 vs. 2009*

*Source: Company Reports

Gazprom Neft

Rosneft

Lukoil

Bashneft

Surgutneftegaz

18.4 19.0 19.9 20.9 20.2

5.88.9

10.8 10.7 11.16.8

7.2

7.49.6 8.6

2.4

2.92.4

2.1 2.7

33.4

37.940.5

43.3 42.6

2009 2010 2011 2012 2013

+28%

-10%

-2%

+4%

-3%

+7%+7%

+13%

Refining Throughput Levels Remain High Amidst Investment

Program

48

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Gasoline yield

Diesel yield

Output by products, MMTonnes

Completion of quality program leads to higher value product

mix

49

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Conversion investments will increase light product yields by about 20% between 2013 and 2020

2013 2014 2015 2016 2017 2018 2019 2020

20

17

3

29

7 2

22

2

15

4

38

12

29

61.3

79.2

36.5

67.1

82.5

36.7

80.6

94.2

37.9

Petroleum product yield structure, %

14

16

3

31

8 1

27

14

16

3

31

8 1

27

2017

Gasoline

Naphtha

Jet fuel

Diesel

Lubricants

Other (Coke, Bitumen,Heating Oil)

Fuel Oil

14

16

3

31

81

27

2017

Gasoline

Naphtha

Jet fuel

Diesel

Lubricants

Other (Coke, Bitumen, Heating Oil)

Fuel Oil

Omsk

Hydrocracking

Coking Unit

Moscow

Hydrocracking

Flexi Coking

YANOS

Hydrocracking

Half of conversion

investment program

expected to come

online between 2013

and 2017

As a result,

conversion rate is

expected to increase

by 15 ppts

Light products will

count for 80% of

total yields by 2020

100 100 100

Light Products Yield, %

Conversion Rate, %

Petroleum Product Output,

mmt

Units to come online

between 2017-2020

50

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


2

4

3

Accompanying

goods and services

Loyalty program

Retail metrics

1 Benchmarking

9.1

12.3

14.916.4

2010 2011 2012 2013

21%

Non oil sales,

1,000 RUB/sq.m.

Loyalty program, mln

members 1

x2.4

74% 35%

Retail metrics Benchmarking

(Avg. daily sales/site) 2 3 4

0.8

1.9

3.3

4.2

2010 2011 2012 2013

947 1,043 1,060 1,111

181 202 205 228

10.1 14.2

17.7 19.0

-30.0 -26.0 -22.0 -18.0 -14.0 -10.0 -6.0 -2.0 2.0 6.0 10.0 14.0 18.0

-

200

400

600

800

1,000

1,200

1,400

1,600

2010 2011 2012 2013Russia networkCIS networkAv/ Daily sales per site in Russia

27% 10%

947 1,043 1,060 1,111

181 202 205 228

10.1 14.2

17.7 19.0

-30.0 -26.0 -22.0 -18.0 -14.0 -10.0 -6.0 -2.0 2.0 6.0 10.0 14.0 18.0

-

200

400

600

800

1,000

1,200

1,400

1,600

2010 2011 2012 2013Russia networkCIS networkAv/ Daily sales per site in Russia

Rebranding pushes annual sales growth

51

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Investments (RUB mln)

15.6% 32% Y-o-Y growth in brownfield capex due to

increase in use of new technologies in legacy fields

Active development of Novoport field, Orenburg

cluster and offshore projects drove 54% Y-o-Y

increase in greenfield capex

Refining capex decreased 35% Y-o-Y as quality

improvement projects reached completion at all

refineries

8% Y-o-Y increase in marketing capex due to

continued reconstruction of newly acquired retail sites

in Russia and abroad

Investment in new projects* increased 58% as a

result of active development of new projects (mainly

offshore projects and Messoyakha field

M&A includes premium channel network expansion

and increase in shares of subsidiaries

* Projects that are not consolidated under IFRS

Capital Investments support strategic goals

52

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


5,6

0,8

3,0

0

1

2

3

4

5

6

Gazprom Neft Lukoil Rosneft*

Cash Flow Reconciliation FY2013 RUB million

* Includes TNK-BP

FCF/boe 2013, USD/boe

US $2.1** Billion free cash flow generated in 2013

53

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


132 534

61 583

98 516

36 869

21 235

91 077

185 922

Debt Fin. assets Net debt

Net debt/EBITDA 0.59x vs. target <1.5x

Increased average debt maturity from 3.81 years in 4Q12 to 5.15 years in 4Q13

Increased average interest rate from 3.48% at December 31, 2012 to 3.68% at December 31, 2013

Diversified debt portfolio: bank loans, bonds, PXF (pre-export finance facility), LPN (loan participation notes)

Debt maturity profile at the end of FY2013

and comparison of profile’s structures 2013 vs. 2012

Debt structure at the end of FY2013, RUB mln

Cash and

cash equivalents

Short-term deposits

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 year 1 - 2 years 2 - 5 years Over 5 years

Otherborrowings

Bank loans

Bonds

LPN

From 31%

to 15%

13% in-line Y-o-Y

From 31%

to 38%

From 25%

to 34%

Diversified debt portfolio

54

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Continued commitment to shareholders via interim dividends

In 2013, the expected amount of annual dividends is 25% of IFRS Net Income

Launched interim dividend program via payment of 6-month interim dividends

Dividends, 2009-2013, RUB bln

0%

1%

2%

3%

4%

5%

6%

7%

2009 2010 2011 2012


Dividend Yield Benchmarking, %

55

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Appendix: 2014 plans for major upstream developments

Chonskiy

Kurdistan

(Iraq)

Kuyumba, Phase 1

Phase 2 and 3

Dolginskoye

Venezuela Partnership with

Shell (KMPA)

Selection Specification Appraisal Exploration Realization Specification Appraisal Exploration Realization

Selection Specification Appraisal Exploration Realization Selection Specification Exploration Realization

Selection Specification Appraisal Exploration Realization

Selection

Appraisal

Selection Specification Exploration Realization Appraisal Specification Appraisal Exploration Realization Selection

Develop a concept for integrated field

infrastructure

Carry out 3D seismic surveying (1100 km2)

and 2D seismic surveying (600 km)

Drill 4 exploration wells

Test production – drill 8 horizontal wells

with horizontal sections from 500 to 900m,

confirm geological hydrodynamic models

“North unit”

Complete 3D seismic field work using UniQ

technology (400km2) and 3D seismic surveying

(200 km2)


Carry out pilot well test - 1 well

“South unit”

Complete 3D seismic surveying (300 km2)


Carry out pilot well test - 1 well

Built a portfolio of license blocks for KMPA

Create a first pass commercial view

Sign the necessary service contracts for

exploratory drilling in 2014 (well 3SD)

Drill well 3SD and test up to 3 productive

zones

Revision of the license obligations

Search for a partner in the project

Preparations for drilling in 2015

Shakal

Complete 3D seismic field work


Garmian


Halabja

Complete interpretation of 2D seismic

surveys

Step-by-step realization of contractual agreement

for supplementary exploration (first stage

completion)

Continue realization of “Early production” project

Pipeline construction as part of “Early production”

Continue construction of roads and bridges

Base engineering of Upgrader and ground-level

infrastructure

56

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Appendix: 2014 plans for major upstream developments (cont'd)

Specification Appraisal Exploration Realization

Specification Exploration Realization


Selection

Orenburg Phase 1-2

Phase 3

Appraisal Exploration

Selection

Specification

Appraisal Exploration Realization Specification

Selection Realization

SeverEnergia

Messoyakha Phase 1

Phase 2

Novoport Phase 1

Phase 2

Prirazlomnoye

Badra 1 (infrustructure)

2 (development)

Appraisal Selection


Specification Exploration Realization Appraisal Selection

Selection Specification Appraisal Exploration Realization Specification Exploration Realization Appraisal Selection

Appraisal Exploration Specification Selection Realization

Specification Exploration Realization Appraisal Selection

Eastern part of Orenburg field

Tsarichanskoye

Commission high-pressure gas compressor and third

technological line at CPF

Complete well stock metering control project

Commission external transport oil pipeline (2.4

MMTonnes/year) and the first start-up complex of CPF

(1.5 MMTonnes/year)

Begin construction of gas pipeline to Orenburg gas

processing plant, booster compressor station and gas

compressor station

Complete design and survey work for the 3rd

start-up complex

Commission off-shore ice-resistant fixed platform

“Prirazlomnaya”

Commission 3 wells (1 production, 1 injection and

1 absorbing)

Begin oil shipments

Commission field camp and water-supply facilities

Complete setting up a field development plan

Launch:

• Technological line “А” CPF

• In-field pipeline

• Export oil pipeline

• Wells BD4, BD5

Begin construction of Technological line “А” GPF

Commission well Р8

Start commercial production

Start production drilling (5 drilling rigs)

Drill 7 wells and carry out exploration wells test

program (phases 1-2)

Launch CPF (400 MTonnes/year)

Complete oil pipeline construction (oil field to CPF)

Start summer crude shipments (temporary scheme)

Complete phase 1 design and survey work and get

approval from the Directorate-General for State

Environmental Review for the Arctic Terminal and

infrastructure

Carry out preliminary work for construction of gas-

turbine power plant, CPF and pipeline

Complete phase 1 design and survey work of the

key infrastructure

Complete drilling well pads #1,2 and well testing


3D seismic survey,

Phase 2 West (drill and test 1 exploration well), East

(drill well pad #4, 3D seismic – 490 km2, drill 1

exploration well, test 2 objects, model specification)

Drill 62 production wells

Implement test production at oil rims

(Samburgskoye and Yaro-Yakhinskoye fields)

Commission 2 trains of GPF(14 bcm per year total)

at Urengoyskoye field; GPF (7 bcm per year) at

Yaro-Yakhinskoye; 3d train of GPF (2.3 bcm per

year) at Samburgskoye field

Implement program to explore oil part of

achimovsky deposits at Samburgskiy license area

Commission 1st train of CPF at Yaro-Yakhinskoye

57

0,051,102

0,102,204

153,204,255

153,051,000

255,102,000

255,204,000

255,204,153

191,191,191

102,163,224


Appendix: Gazprom neft balance

Hydrocarbon production abroad

1.25 MMTonnes

49.33 MMTonnes Crude oil production in Russia

4.74 MMTonnes Petroleum products purchase

Russian Federation 1.85 MMTonnes

Crude, MMTonnes

Petroleum products, MMTonnes

Refining abroad

2.75 MMTonnes

45.31MMTonnes

20.6 MMTonnes Export

4.7 MMTonnes Other customers

and state contracts

18.8 MMTonnes Filling stations and tank farms

PRODUCT OUTPUT*** CRUDE OIL SALES**

12.39 MMTonnes Export sales (CIS, NIS a.d, NoviSad, Gazprom Neft Trading Gmbh)0

14.24 MMTonnes

7.10 MMTonnes

Premium business

segments

6.81 MMTonnes

Hydrocarbon purchases

0.4 MMTonnes Condensate

58

Part 6. Gazprom Energoholding

Denis Fedorov Head of Gazprom Directorate for Development of Power and Heat Generation

CEO of Gazprom Energoholding

59 Gazprom Energoholding - Investor Day 2014

Russian power generation

Russia is a Top-6 country

in terms of installed capacity, 2012, GW

Market turnover

2008-2012, $bn

Depreciation in

the generation

sector

Key facts about the market

The largest

generating

companies

in Russia, GW

Private investments in the industry exceed

$40 bn since 2006

The electricity market is completely liberalized Projects within the Capacity Delivery Agreements

(CDA) provide 14% IRR of the players’ investments

Russia is a growing competitive market

37,7

37,5

33,5

25,2

19,5

GEH

RusHydro

Inter RAO

RosAtom

EuroSibEnergo

24 23 30 33 32

16 16 19 23 22

2008 2009 2010 2011 2012

Production Transmission

26%

22%

65%

52%

57%

35%

22%

21%

Thermal

Hydro

Nuclear

< 30 years 31-50 years > 50 years

1 220

1,168*

964

287*

234

223

China

US

EU

Japan

India

Russia №6

Source: companies’ data

Source: GEH analysis

Source: companies’ data

* Data as of 2011. Source: data of power authorities of the countries, EIA


-7,8%

4,5% 4,4% 3,5%

1,5%

2,9% 3,5% 3,7% 3,9% 3,8%

-9,0%

-6,0%

-3,0%

0,0%

3,0%

6,0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Electricity consumption in Russia:

Dynamics and drivers

The Russian GDP growth rate

is expected to grow

following the recovery of key industries

Electricity prices in Russia

have potential to grow

Forecast of electricity consumption in

Russia, bn kWh Russia’s GDP growth rates Electricity prices for industrial

customers, EUR/MWh in 2012

Consumption of electricity is

expected to grow at 1% annually

in 2014-2020

GDP growth rates are expected to

recover to 3-4% per year

in 2014-2018

Elimination of cross-subsidization

may become the growth driver

0

30

60

90

120

150

Russia Germany Spain France Poland Italy UK

Source: World Bank, EIA, statistical agencies of the countries Source: EIU forecast 2014

Consumption of electricity in Russia

has been growing at 1.8% annually

in the recent 10 years

1 038 1 049

1 062 1 076

1 091 1 106

1 121 1 134

1 146

1 000

1 050

1 100

1 150

1 200

2012

2013

2014

2015

2016

2017

2018

2019

2020

Sources: fact 2012 – Energy Forecasting Agency,

forecast is evaluated indicatively basing on GDP forecast of MED


Gazprom Energoholding assets’ profile

1. As of February 25, 2014

Gazprom energoholding owns controlling stakes

in Mosenergo, TGK-1, OGK-2 and MOEK

GEH is the leading thermal generator in Russia

53.5%

51.8%

77.3%

98.9%

As of 2013 Electricity Heat

Installed capacity 37.7 GW 71.3 th. Gcal/h

Production 159.6 bn kWh 124.8 mm Gcal

Electricity Heat



Electricity Heat

Installed capacity 12.3 GW 35,1 th. Gcal/h


MCap $0.96 bn(1)

Free float 15%

Electricity Heat

Installed capacity 7.2 GW 14,2 th. Gcal/h


MCap $0.70 bn(1)

Free float 22.6%

Electricity Heat



MCap 0.77 bn(1)

Free float 22.7%

More than 75% of GEH gas consumption is produced by the

subsidiaries of Gazprom

More than 75% of gas

consumption GEH - gas

produced by companies of

Gazprom

Более 75%

потребления газа ГЭХ

– газ, добываемый

компаниями группы

Газпром

GEH consumes over

75% of natural gas

produced by the

subsidiaries of

Gazprom


GEH influence area

Operational efficiency

Guaranteed IRR of investments

Availability of debt funds

Strategy and M&A, creation of synergies

Corporate governance and IR

Gas tariff

Heat tariff Climate

1

2

3

4

5

We do not affect

tariffs…

… but we create value

for shareholders

via internal

optimization

Prices for power

Environment

The industry specifics give less space for price and volume maneuver, therefore the company is focused on

efficiency enhancement

The strategic goals of GEH remain the retention of its leading position in the industry, entry into new markets

and social responsibility to its personnel

The management is focused on value creation


Performance of management on GEH assets optimization

7,8

11,9

15,4 16,5 17,3

2010 2011 2012 2013F 2014F

The company has executed the program of expense reduction:

– Successful operational activities (optimization of load conditions and fuel balance, reduction of worktime for

unprofitable units, effect from new capacities)

– Enhancement of procurement system

– Optimization of organizational structure (personnel down by 795 persons, effect was RR 225 mm)

Gazprom Energoholding completed its acquisition of MOEK :

– MOEK acquisition will allow Mosenergo to eliminate the risk related to the loss of a part of heat loads

(due to the merger of MOEK and MTK)

Commissioning of new effective units results in expense reduction:

– New CHPPs in TEC-21 and TEC-26 commissioned in recent years reduces the fuel consumption

significantly

256 212 217 209

TEC-21 TEC-26

9m2012 9m2013

Fuel rate in electricity production

by new CHPPs, g/kWh

-51%

-13%

-15%

Advisory, legal, auditor services(1)

Transportation expenses (1)

Materials and supplies expenses (1)

EBITDA TGK-1*, RR bn

In 2013 GEH managed to reduce its expenses and strengthen the financial position of its assets

GEH also executed the acquisition of MOEK which is expected to create significant synergies when integrated

with Mosenergo

* IFRS

1. RAS as of December 31, 2013

Cash flow of TGK-1 will grow following the execution of the investment program:

– Completion of CDA projects will allow to increase EBITDA of TGK-1

Program of operational effectiveness improvement:

– The overall effect reached RR 1.4 bn of EBITDA in 2012 and RR 881 mm of EBITDA in 2013

– The key initiatives in 2013 are optimization of procurement and reduction of output by ineffective

capacities


-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

-6% -4% -2% 0% 2% 4% 6% 8% 10% 12%

Growth of GEH assets financials

Gazprom Energoholding significantly outperformed the leading European power companies

in terms of growth rates

Revenue CAGR 2009-2013F, IFRS

35.0%

EBITDA CAGR 2009-2013F, IFRS

*

Revenue CAGR in 2009-2013

reached 9%,

EBITDA CAGR– 9%

Source: Bloomberg consensus as of January 27, 2014

* Excluding MOEK

The 2013 results exclude the depreciation tests and potential transactions with the assets of “Khimki Heating Grids”


Expected effect

on EBITDA

from the costs

optimization activities

Expected effect from the drivers of 2013-2014 EBITDA

Impact from the MOEK acquisition:

Gas savings due to load switching

Optimization of heat management

system

Sale of land

Other*

CDA program finalization

LEAN program

CDA program implementation

Execution of cost reduction program

CDA program finalization

Improvement of corporate management

by means of introducing Fortum

representatives to the Board

+0.5 RR bn

Costs optimization programs implemented by GEH are expected to result in EBITDA increase of over

RR 4 bn in 2013 and over RR 2 bn in 2014

Expected growth

drivers

Some measures/initiatives will also allow the company to increase its value in the future:

+0.8 RR bn

2013 2014 2013 2014 2013 2014

+1.5 RR bn

+1.8 RR bn

+0.8 RR bn

+0.8 RR bn

Management reporting data

* Other effects include the use of equipment from MOEK boilers subject to be closed at other objects and extra income from the rental or sale of office buildings


Additional growth opportunities for GEH

Projects

in Russia

Projects

abroad

1

2

Service business

GEH acquired a group of power maintenance companies “TeploEnergoRemont” in 2013

GEH holds the blocking stake of power service company “Tekon-Engineering”

Both companies carry out contracting works for GEH generating subsidiaries, as well as for companies

outside the group

3

4

Pancevo project

Construction of a 208 MW CHPP in the town of Pancevo together with NIS

Return on investments is guaranteed by long-term agreements on fuel supplies and sales of heat

and electricity

Potential foreign projects

GEH is permanently monitoring markets which can be potentially interesting for business development.

At the moment the company is evaluating the opportunities in Germany, Serbia and other Balkan

countries, as well as in Japan, China and Vietnam

Power fuel stations

Agreement on power fuel stations was signed with the Government of Moscow

Particularly, GEH reached the preliminary agreements concerning the measures for increasing the

number of electric vehicles and building the required infrastructure in Moscow

Being a part of Gazprom Group, GEH positions itself as an international player

Along with the current work on efficiency improvement, the company continues to seek opportunities for

added value creation both in Russia and abroad


Appendix:

GEH profile

Gazprom Energoholding is the largest owner of power

generating assets in Russia (controlling stakes in Mosenergo,

TGK-1, OGK-2 and MOEK)

GEH unites 81 power stations with installed capacity of

ca. 37.7 GW (about 17% of the total installed capacity of the

Russian electric power industry), and is one of the Top-10

European power producers

Top-10 European power generating companies by installed capacity,

1H 2013, GW

Installed capacity in Russia

as of 31.12.2012(1)

17%

83%

1. Source for the total installed capacity in Russia (223 GW) – data of the System Operator

2. GdF Suez installed capacity in Europe

GEH fuel balance

as of 30.09.2013

84,5%

14,9% 0,7%

Gas

Coal Fuel oil

General Information

Source: company data

Source: System Operator

139,5

97,8

67,7

52,0

50,7

39,4

37,7

37,4

36,5

33,5

(2)


Appendix:

Operational and financial results outlook for 2013/2014

kWh bn 2012 2013 2014F Change

Mosenergo 61.3 58.6 62.7 7.0%

TGK-1 27.3 29.3 30.9 5.5%

OGK-2 75.2 70.7 73.9 4.5%

Total 166.9 158.6 167.5 5.6%

166,9 158,6 167,5

+5.6%

Electricity

output

RR bn 2012 2013F 2014F Change

Mosenergo 157.1 156.7 168.0 7.2%

TGK-1 62.5 67.5 73.1 8.3%

OGK-2 104.2 112.0 112.9 0.8%

Total 323.8 336.1 354.0 5.3%

323,8 336,1 354,0

+5.3%

Revenue

(IFRS)

Gcal mm 2012 2013 2014F Change

Mosenergo 68.4 67.6 67.6 0%

TGK-1 24.6 27.3 27.3 +7.9%

OGK-2 6.3 6.8 6.7 -1.5%

Total 101.1 99.7 101.6 1.9%

101,1 99,7 101,6

+1,9% Heat

output

RR bn 2012 2013F 2014F Change

Mosenergo 20.3 24.7 24.6 -0.4%

TGK-1 15.4 16.5 17.3 4.8%

OGK-2 10.6 11.5 11.8 2.6%

Total 46.3 52.7 53.7 1.9%

46,3 52,7 53,7

+1.9% EBITDA

(IFRS)

Source: Companies’ data

Data for Mosenergo and OGK-2 exclude the 2013-2014 depreciation tests. Data for Mosenergo are shown without the potential effects of the transactions with “Khimki Heating Grids” assets


Appendix:

Investments of GEH companies

guarantee value creation in the future

GEH invests into

CDA projects,

all of which are

profitable

Share of new capacities

in the revenue of the subsidiaries (2013)

Share of new

capacities reached

15.9% in the 2013

revenue, and is still

growing

14,0% 21,2%

15,3%

Mosenergo TGK-1 OGK-2

5,1

2,3

3,8

0,1 0,4

before 2013 2014 2015 2016 2017

Commissioning timeline

according to GEH investment program, GW

499

118

CDA tariffEssential tariff

4.2x

RR ths. per 1 MW/month

Upgraded CDA tariff guarantees return on investments

9,4% 11,1% 15,9%

2011 2012 2013

Share of new capacities

in the revenue of GEH

IRR

13-14%

Basic IRR of investments on

the basis of Capacity Delivery Agreements

In the coming years GEH will continue

to execute the CDA program, and will also

obtain additional income from the

previously commissioned CDA units

In 2014-2017

the company will

continue the CDA

program according

to the accepted

timeline


Appendix:

MOEK acquisition

Economy due to the switch of loads

from ineffective boiler stations of

MOEK to GEH stations (potential

effect over RR 10 bn)

Up to 3,500 Gcal/h may be switched

to combined cycle generation

In 2013 GEH acquired MOEK – a strategic transaction which is expected to create the following synergy effects:

The measures are expected to

result in the reduction of…

• heat losses by 1 mm Gcal

by the end of 2013

• headcount by 1 thousand

employees

Potential sale of land plots under

the boiler stations to be closed

Obtaining the status of a Unified

Heat Supplying Company in

Moscow and other operational

synergies

Upon acquisition of MOEK, GEH

will control 93% of heat generation

in Moscow

The transaction will also allow

GEH to control 93% of heat

distribution market

Load switch synergies, tons of fuel equivalent

~300

75

~225

Average fuelconsumption by MOEK

boiler stations

Potentialeconomy

Average fuelconsumption of

Mosenergo(co-generation)

70%

23%

7% 18%

75%

7%

Generation Distribution

93% 93%

Mosenergo MOEK Others

Structure of Moscow power market


Appendix:

Expected effect of tariffs freeze

* Company’s expectations based upon the recent public releases about the potential changes in tariffs and prices

1. Market Council forecast

2. In case the change is 0% starting from 01.01.2014

3. Excluding the Russian Railways tariff

Segments Markets Resolution of the Government

on the tariff change starting from 01.01.2014

2014/2013

average growth rate

Electricity Wholesale market N/A + 6%(1)

Regulated agreements 0% + 6-7%(2)

Capacity

Competitive capacity outtake 0% – 3%

Regulated agreements 0% + 3-4%

CDA no resolution yet same level

Heat Industrial customers + 0-4,2% + 0-4,2%

Households + 4,2% + 4,2%

Fuel Gas 0% + 7%

Coal + 0-1%(3) + 0-1%(3)

The so-called “tariffs freeze” became an important event in power sector regulation in 2013 – The freeze assumes indexation of gas, electricity and capacity tariffs (as well as rail) by 0% in 2014. Further, the Government is planning the

indexation of the above tariffs by rates not higher than the previous year’s inflation

– As only the regulated tariffs, including the gas tariffs, will be frozen, while electricity prices are not fixed on a free market, the effect may not be

negative for the electricity industry

72 Gazprom neft - Investor Day 2014

Section of Investor Relations

Tel: (007) (495) 428-47-83

Alexey KOKOREV

Head of Corporate Finance Department

Phone: (007) (812) 648-3117

E-mail: [email protected]

Anna SIDORKINA

Head of Investor Relations

Phone: (007) (812) 385-9548


Department of Corporate Finance

Investor Relations

Tel: (007) (812) 385-9548

Contacts for investors

Department for Finance&Economics

Corporate Finance Directorate

Fax: (007) (495) 719-35-41

Oleg NAGOVITSYN

Deputy Head of Corporate Finance Directorate Phone: (007) (495) 719-26-25


Andrey BARANOV



Ekaterina PAVLOVA


Phone: (007) (495) 428-47-83 (ext. 4607)


mailto:[email protected]









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