Gazprom EDR : 2Q 2019 IFRS Results Presentation

GAZPROM: 2Q2019 IFRS RESULTS

AUGUST 29, 2019

Alexander Ivannikov

Head of Department

2Q2019 IFRS RESULTS

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DISCLAIMER

This presentation has been prepared by PJSC Gazprom (the "Company"), and comprises the slides for a presentation to investors concerning the Company. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities representing shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.

Any viewer of this presentation considering a purchase of such securities is hereby reminded that any such purchase should be made solely on the basis of the information contained in the prospectus or other offering document prepared in relation thereto and will be subject to the selling restrictions set out therein. The information in this presentation should not be treated as 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, such statements may also occur during the Q&A session. 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.

2Q2019 IFRS RESULTS

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2Q2019 MARKET ENVIRONMENT

HIGHLIGHTS

• GAS EXPORT VOLUMES+2* TO.EUROPE1%IN 2Q2019 INCREASED BY 3% Y-O-Y
• GAZPROM PRICES IN EUROPE IN 2Q2019 WERE HIGHER THAN SPOT PRICES

AVERAGE GAS PRICES		WEATHER INDEX IN EUROPE

USD/mcm

20000

Range (2000-2018)

300

Average (2000-2018)

HDD+CDD*

15000

2018

200

2019

10000

100

TTF 1 Month Ahead

5000

0

0

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Jun-19

Jul-19

Aug-19

Feb

Mar

Apr

Aug

Sep

Oct

Nov

Dec

Jan

Jul

Jun

Jul

	AVERAGE USD/RUB EXCHANGE RATE
65		+5%
	•	RUBLE WEAKENING
64
		BY 5% Y-O-Y WAS
63
		FAVORABLE FOR
62		64.55
61	61.77		EBITDA MARGIN
60
	2Q2018	2Q2019
*Under Gazprom Export LLC. contracts

END OF PERIOD USD/RUB EXCHANGE RATE

-3%
65	•	DURING 2Q2019
60		RUBLE
64.73	63.08	STRENGTHENED
55		BY 3% WHICH
50	Jun 30, 2019	RESULTED IN
Mar 31, 2019	FX GAINS

2Q2019 IFRS RESULTS

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2Q2019 KEY FINANCIALS

• ROBUST OIL, ELECTRICITY AND HEAT BUSINESS GROWTH
• FX GAINS: RR 35 BN IN 2Q2019
• FCF ADJ. NEGATIVE DUE TO HIGH TAX PAYMENTS

																	Adjusted for analytical purposes*
																						2Q2018 vs 2Q2019
RUB bn																							0%
2,400		-3%
1,900
1,400
900	1,785		-13%			+16%			-2%				-35%			2,070
400
				497	301	347		292
-100
																			-55
		Sales	1		2	3			Operating CF adj.	FCF adj.	4
				EBITDA			Net profit			CAPEX		Net debt adj.

1 EBITDA adjusted for changes in impairment provisions

2 Profit attributable to PJSC Gazprom's shareholders for the period 3 Cash capital expenditures

4 Compared to Net debt as of March 31, 2019

*In order to reflect the effects of the changes in bank deposits (reported as part of Other current assets and Other non-current assets)

2Q2019 IFRS RESULTS

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