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Company Presentation June 2015 DISCLAIMER The information - - PowerPoint PPT Presentation

Company Presentation June 2015 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


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SLIDE 1

Company Presentation

June 2015

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SLIDE 2

DISCLAIMER

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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

  • f 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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SLIDE 3

4.0 6.2 8.5 8.7 8.5 9.4 0.8 1.9 2.9 2.6 2.5 2.7 20% 31% 35% 30% 29% 32%

2009 2010 2011 2012 2013 2014 Revenue, USD bln EBITDA, USD bln EBITDA 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.

3

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 March 2015) and BB+/Fitch (affirmed in February 2015) 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

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SLIDE 4

SIBUR OPERATES A UNIQUE VALUE CHAIN

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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.

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 (2014) EBITDA: USD 2,299 mln EBITDA margin(3): 41.8% PETROCHEMICALS (2014) EBITDA: USD 542 mln EBITDA margin: 14.6%

Integrated Value Chain from Feedstock Sourcing to the Production of Petrochemicals

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SLIDE 5

EXTENSIVE ASSET BASE THROUGHOUT RUSSIA

5

Khanty-Mansiysk ● Salekhard ● Kemerovo ● Tyumen ● Omsk ● Samara ●

  • Ufa
  • Perm

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

  • ther chemicals

Logistics raw NGL pipeline transshipment facility

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SLIDE 6

Plastics and

  • rganic synthesis

Basic polymers (PP, PE) Synthetic rubbers

VERTICALLY INTEGRATED MODEL WITH MULTIPLE EMBEDDED EARNINGS SUSTAINABILITY DRIVERS(1)

6

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(4) EBITDA margin(2): 41.8%

17(3) production sites

Gross sales: RR 142.3 bln EBITDA margin: 14.6%

Gas-based feedstock (NGLs)

Intermediates and

  • ther chemicals

Oil producers External sales represent c. 86% of Feedstock & Energy segment gross revenue(4) 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) Estimated EBITDA margin excludes naphtha trading via the Ust-Luga transshipment facility. (3) As of 31 December 2014. (4) Excludes naphtha trading volumes.

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

  • il & 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%(4)

  • 1. Vertically integrated business model supporting resilient business performance

70%(4)

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SLIDE 7

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

7

SIBUR owns and operates the largest and most extensive infrastructure for processing and transportation of feedstock in Western Siberia:

  • 7 out of 9 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

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SLIDE 8

Hydrocarbon Feedstock Purchasing Expenses

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.

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12.4 13.0 12.7 13.0 13.9 19.4 16.8 17.5 18.0 18.7 19.6 20.8 2009 2010 2011 2012 2013 2014

10 20 30 40 50 60 2005 2010 2015 2020 2025 2030 20 40 60 80 100 2005 2010 2015 2020 2025 2030

1.1 1.5 2.0 1.9 2.1 2.2 2.4 2.8 3.3 3.4 3.6 2.6 2009 2010 2011 2012 2013 2014 6.3 14.2 22.9 24.7 25.6 25.8 4.0 4.7 5.3 7.3 9.4 20.5 10.3 18.8 28.2 32.0 35.0 46.4 2009 2010 2011 2012 2013 2014

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

  • 93% of APG supplies for

2015 guaranteed under multi-year contracts

  • WA maturity of supply

contracts – 15.8 years

  • NOVATEK  Gazprom
  • Rosneft
  • Gazprom Neft
  • RussNeft

Key Supply Contracts as of 31 March 2015 APG NGLs

  • 91% of NGLs supplies for

2015 guaranteed under multi-year contracts

  • WA maturity of supply

contracts – 17.5 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

APG NGLs

  • 2. Advantageous access to feedstock and high barriers to entry
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SLIDE 9

DIVERSE DRIVERS AND END-MARKETS

2014 revenue(1), RR bln 2014 revenue(1) structure

Notes: (1) External sales.

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
  • f tyre &

vehicle manufacturing

  • Natural rubber

prices

  • Commodity

cycle, demand/supply balance in respective petrochemical products

  • Demand/

supply in multiple end-customer industries

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Domestic Export

19% 81% 23% 77% 64% 36% 11% 89% 100% 37% 63% 13% 87%

Naphtha trading operations via Ust-Luga, ceased in 2015

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 LPG, naphtha, raw NGL Natural gas MTBE & other fuel additives Basic polymers Synthetic rubbers Plastics & organic synthesis Intermediates &

  • ther chemicals

Petrochemicals, fractionation FMCG, construction Automotive, construction FMCG, chemicals, construction Fuels Chemicals, petrochemicals Residential applications Power, utilities

  • 3. Highly diversified product portfolio
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SLIDE 10

54 46

LDPE

65 35

Basic polymers Synthetic rubbers Plastics and

  • rganic synthesis

10

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

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SLIDE 11

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Western 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 in Western Europe

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) Western Europe Tobolsk Naphtha feedstock cost(2) Total cost for producers(3) HDPE production cost (3) Total cost for producers(3)

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SLIDE 12

200 400 600 800 1,000 1,200 1,400 50,000 100,000 150,000 200,000 250,000

(USD per tonne)

Light olefins (2019)

ME avg. / NA ethane NA avg. WE avg. NEA avg. China coal-to-olefins ZapSibNeftekhim Tomskneftekhim Tobolsk-Polymer

Project Overview

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

(1) Source: IHS, November 2014.

Strong Position on the Global Cost Curve(1)

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  • 5. Unique growth opportunities

Cumulative capacity („000 tonnes) ME – Middle East NA – North America NEA – Northeast Asia WE – Western Europe

  • 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 June 2015

  • Preparation works for construction
  • FEED for ECU, PP and PE units completed
  • Overall completion 8.3%, including FEED stage
  • EUR 1,575 mln Hermes ECA-backed committed credit lines with

tenor of 15yrs opened to fund German EP contracts; EUR 115 mln drawndown (March 2015)

  • In-principle approval from Coface for ECA cover for French EP

contracts

  • Major EP contractors engaged (Linde, Technip, ThyssenKrupp

Industrial Solutions)

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SLIDE 13

APPENDIX

1. Business Description: Additional Details 2. FY 2014 Operational and Financial Results 3. Q1 2015 Limited Operational Update 4. Exposure to Oil Prices & FX, Market Prices 5. Corporate Governance & History 6. Investment Programme Results 7. Yugragazpererabotka Transaction

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SLIDE 14

ENERGY PRODUCTS

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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

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SLIDE 15

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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 organic synthesis products Intermediates and

  • ther chemicals

Synthetic rubbers Energy products Top-10 Largest customer

2014 2014

67% 37% 57% 39% 33% 63% 43% 61% Energy Basic polymers Synthetic rubbers Plastics and

  • rganic

synthesis Spot 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

  • ther chemicals

%

LPG Naphtha Natural gas Basic polymers Synthetic rubbers Plastics and

  • rganic

synthesis products MTBE and

  • ther fuels

Processing services and other sales Raw NGL

2014

%

By product By region

Naphtha trading operations via Ust-Luga, ceased in 2015

(1) Excluding naphtha trading operations.

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SLIDE 16

APPENDIX

1. Business Description: Additional Details 2. FY 2014 Operational and Financial Results 3. Q1 2015 Limited Operational Update 4. Exposure to Oil Prices & FX, Market Prices 5. Corporate Governance & History 6. Investment Programme Results 7. Yugragazpererabotka Transaction

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SLIDE 17
  • Macroeconomic environment was generally challenging in 2014
  • Near stagnancy in Russian economy; gradual deceleration of

GDP growth in China; rebounding EU and US GDP

  • Accelerating inflation in Russia
  • Sharp decline in oil prices later in the year; lower naphtha

prices; mixed dynamics on key LPG markets (in USD terms)

  • Weak market environment in synthetic rubbers; flat market

prices for basic polymers; price correction for most plastic &

  • rganic synthesis products
  • Substantial RR depreciation against USD and EUR
  • Avg. RR/USD rate up by 20.6% y-o-y
  • RR/USD rate as of 31 Dec‟14 up by 71.9% vs 31 Dec‟13
  • BoD approval to proceed with ZapSibNeftekhim (September 2014)
  • Major EP contractors engaged; construction at the initial stage
  • EUR 1,575 mln ECA-backed committed credit lines with tenor of

15 yrs opened to fund German EP contracts; in-principle approval from Coface for ECA cover for French EP contracts

  • Completion of investment cycle:

2014:

  • 1,100 km Purovsk–Pyt-Yakh–Tobolsk pipeline
  • Second GFU in Tobolsk (to 6.6 mtpa)
  • PET capacity expansion (to 210 ktpa)
  • New BOPP-films production line (30.5 ktpa)
  • RusVinyl (330 ktpa of PVC and 225 ktpa of caustic soda) and

expansion of cracking capacity in Kstovo (to 360 ktpa) 2013:

  • Ust-Luga transshipment facility (2.5 mtpa of light oils, 1.5 mtpa of

LPG)

  • Tobolsk-Polymer (500 ktpa of PP): avg. capacity load at 53% in

2014, 91% in Q4 2014

  • New BOPP-films production in Tomsk (38 ktpa)
  • New SBS production in Voronezh (50 ktpa)
  • Acquisition of 25% in Omsk Polypropylene Plant (Poliom) via JV with

Gazprom Neft and Titan Group

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
  • USD 1 bln payables outstanding for 2015: USD 0.5 bln paid in

January 2015; remaining USD 0.5 bln to be paid in April 2015

  • Upsurge in naphtha revenues and EBITDA dilution on trading
  • perations via Ust-Luga – ceased in 2015

External Environment SIBUR Key Developments One-off Factors

17

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SLIDE 18

FY 2014 KEY OPERATIONAL AND FINANCIAL HIGHLIGHTS

  • APG processing volumes increased by 6.3% y-o-y to 20.8 bcm
  • Natural gas production increased by 6.4% y-o-y to 18.0 bcm
  • Raw NGL fractionation volumes increased by 20.1% y-o-y to 6.3 mt
  • LPG production increased by 27.8% y-o-y to 5.1 mt
  • Petrochem products sales volumes increased by 5.6% y-o-y to 2.2 mt
  • PP production increased 2.6x y-o-y to 395.3 kt

Operational Results Financial Results

  • Revenue increased by 33.8% y-o-y to RR 361.0 bln
  • EBITDA increased by 30.3% y-o-y to RR 102.8 bln, for an EBITDA margin of 28.5%
  • Estimated EBITDA margin adjusted for naphtha trading(1) amounted to 32.2%
  • Petchem EBITDA increased 2.7x y-o-y, for petchem EBITDA margin up to 14.6%
  • Net profit decreased by 44.8% y-o-y to RR 25.1 bln due to FX loss of RR 85.4 mln
  • Operating cash flows before working capital changes increased by 35.2%
  • CapEx decreased by 3.3% y-o-y to RR 67.7 bln
  • Net Debt to EBITDA at 1.74x as of 31 Dec‟14 (1.19x in USD terms) vs. 1.17x as of 31 Dec‟13

Notes: (1) Estimated adjusted EBITDA margin excludes naphtha trading via the Ust-Luga transshipment facility.

18

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SLIDE 19

31.8 38.4 2013 2014 14.5 7.4 2013 2014 3.7% 5.9% 2013 2014 1.3% 0.6% 2013 2014 6.5% 11.4% 2013 2014

MACRO ENVIRONMENT

Russian GDP Growth(1) Consumer Price Index (y-o-y)(1) Producer Price Index (y-o-y)(1) Average Exchange Rate(3) Natural Gas Price Indexation

Source: (1) Russian Federal State Statistics Service (2) Preliminary Data (3) CBR

+20.6% RR / USD 30.4 32.7 31 Dec'12 31 Dec'13

EOP Exchange Rate(3)

RR / USD +7.8% 32.7 56.3 31 Dec'13 31 Dec'14 +71.9%

19

(2)

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SLIDE 20

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.

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1.0 1.5 2.0 2.5 3.0 3.5 2013 2014 Natural rubber Styrene-butadiene rubber Butadiene Butyl rubber Styrene 0.06 0.07 0.08 0.6 0.9 1.2 2013 2014 Brent Naphtha LPG CIF ARA (large) MTBE LPG DAF Brest Natural gas (RHS) (8.2%) (15.2%) (31.1%) (4.4%) 1.0 1.2 1.4 1.6 1.8 2.0 2013 2014 2-ethylhexanol Expandable polystyrene MEG Butyl acrylate PET 1.3 1.4 1.5 1.6 2013 2014 PP LDPE

Energy Products Basic Polymers

(8.5%) (7.4%) +1.8% (0.0%)

Synthetic Rubbers Plastics & Organic Synthesis

(4.8%) (9.8%) (10.1%) (11.5%) (13.4%) (4.5%)

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

(11.0%) (22.1%) (14.9%) +2.2%

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SLIDE 21

2.2 2.5 2013 2014 +14.7% 8.5 9.4 2013 2014 +10.9% 6.4 7.4 2013 2014 +15.3% 2.5 2.7 2013 2014 +8.0% 2.3 2.4 2013 2014 +3.8%

SIBUR FINANCIAL SUMMARY(1)

EBITDA EBITDA Operating Cash Flow Operating Cash Flow Investing Cash Flow(3) Investing Cash Flow(3)

78.9 102.8 2013 2014 +30.3%

RR bln USD bln

269.8 361.0 2013 2014

RR bln

+33.8%

21

USD bln USD bln USD bln USD bln

205.3 285.6 2013 2014 +39.1%

RR bln 72.7 91.1 2013 2014 +25.2% RR bln

(1) Values in USD estimated based on average RR/USD rate of 38.4217 and 31.8480 in 2014 and 2013, respectively. (2) Operating expenses before equity-settled share-based payment plans. (3) Includes CapEx and M&A.

Russian Roubles USD Equivalents (illustrative)

70.4 97.4 2013 2014 +38.3%

RR bln Revenue Revenue Net Operating Expenses(2) Net Operating Expenses(2)

Naphtha trading operations via Ust-Luga, ceased in 2015

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SLIDE 22

21 19 10 6 3 13 11 8 6 3

REVENUE STRUCTURE AND DYNAMICS

49 36 8 6 1

Asia Europe CIS Other Russia % By region

Revenue Split by Region Revenue Split by Product 2014

%

2014 269.8 361.0 2013 2014 RR bln Total Revenue +33.8% 116.0 132.5 2013 2014 144.7 217.2 2013 2014 +50.1% +14.2% RR bln Energy Products Petrochemical Products RR bln

Intermediates and

  • ther chemicals

LPG Naphtha Natural gas Basic polymers Synthetic rubbers Plastics and organic synthesis products MTBE and

  • ther fuels

Processing services and other sales Raw NGL

22

Naphtha trading operations via Ust-Luga, ceased in 2015

slide-23
SLIDE 23

REVENUE DYNAMICS BY PRODUCT GROUP

18.6 19.4 2013 2014 19.2 20.5 2013 2014 41.6 45.8 2013 2014 32.4 27.8 2013 2014 26.7 38.0 2013 2014 60.8 77.2 2013 2014 22.8 38.4 2013 2014 Natural gas Synthetic Rubbers Plastics & Organic Synthesis MTBE Intermediates & Other RR bln +26.9% +42.5% +4.1% (14.1%) +10.1% +6.8% LPG Basic Polymers 9.4 9.7 2013 2014 Raw NGL +3.2% 2013 2014 Other Revenue +23.9% 9.1 11.3 RR bln RR bln RR bln RR bln RR bln RR bln RR bln RR bln +68.3% 26.3 68.9 2013 2014 Naphtha +162.3% RR bln

23

Naphtha trading operations via Ust-Luga, ceased in 2015

slide-24
SLIDE 24

1,127 2,387 2013 2014

Sales volumes, ‟000 tonnes Change in effective avg. selling price, % Trading operations via Ust-Luga, ceased in 2015

2,986 3,468 2013 2014 11,842 16,005 2013 2014

KEY ENERGY PRODUCTS: SALES VOLUMES AND PRICE DYNAMICS

LPG +16.2% +9.2% +5.4%

Sales volumes,‟000 tonnes Change in effective avg. selling price, %

Key Factors Natural Gas +35.2%

Sales volumes, mln cubic metres Change in effective avg. selling price, %

LPG and naphtha:

  • Higher sales volumes on
  • expanded trading activities
  • organic growth in production following the launch of integrated

feedstock processing and transportation infrastructure

  • …supported by higher naphtha and LPG selling prices largely

attributable to

  • substantial RR depreciation…
  • …despite lower market prices for majority of products (in USD terms)
  • …partially compensated by longer delivery basis for trading volumes
  • mixed effect of higher export duties on LPG and lower export duties
  • n naphtha

Natural gas:

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

production at GPPs of Yugragazpererabotka following its acquisition

  • …supported by higher natural gas selling price on the 7.4% y-o-y

indexation of regulated prices

Naphtha +23.9% +111.8%

24

slide-25
SLIDE 25

769 788 2013 2014 Basic Polymers Synthetic Rubbers Key Factors Plastics & Organic Synthesis Intermediates & Other 430 360 2013 2014 455 650 2013 2014 473 449 2013 2014 (5.1%) +42.7% +2.4% +12.5% +7.5% +2.6%

PETROCHEMICALS: SALES VOLUMES AND PRICE DYNAMICS

Sales volumes, ‟000 tonnes Change in effective avg. selling price, % Sales volumes, ‟000 tonnes Change in effective avg. selling price, % Sales volumes, ‟000 tonnes Change in effective avg. selling price, %

+17.9% (16.3%)

Change in effective avg. selling price, % Sales volumes, ‟000 tonnes

Basic polymers:

  • Higher sales volumes due to growth in PP

production following Tobolsk-Polymer launch

  • Higher PP and LDPE prices largely attributable to

weak RR despite flat international market prices Synthetic rubbers:

  • Decrease in sales volumes primarily due to

challenging market conditions

  • Continued downward pricing trend for all rubber

grades materially compensated by RR depreciation Plastics & organic synthesis:

  • Higher sales volumes largely due to
  • higher PET and BOPP-film production following

capacity expansions…

  • …largely offset by a decrease in glycols

production as a result of shutdowns in Kstovo and Dzerzhinsk…

  • …and divestment of Plastic and PVC cable

compounds production

  • Decline in international market prices for majority of

products mitigated by substantial RR depreciation Intermediates & other chemicals:

  • Lower sales volumes due to
  • lengthy shutdowns in Kstovo and Dzerzhinsk
  • higher TPA volumes used internally following

expanded PET production…

  • …partially compensated by launch of ethylene

sales

25

slide-26
SLIDE 26
  • Increase in goods for resale purchases on expanded trading activities

following the launch of Ust-Luga transshipment facility

  • Higher feedstock & materials on higher APG purchases following the

acquisition of Yugragazpererabotka and new terms of contracts with Rosneft

  • purchase of 100% of APG supplied to the GPPs of Yugragazpererabotka
  • change in APG price formula for new contracts with Rosneft
  • compensated by termination of raw NGL purchases from Rosneft
  • Higher D&A expenses due to
  • commissioning of new large-scale facilities (raw NGL pipeline, Tobolsk-

Polymer, second GFU)

  • amortisation of intangible assets related to APG supply contracts
  • consolidation of Yugragazpererabotka‟s assets
  • Higher transportation & rent expenses due to RR depreciation,

transportation services to NOVATEK, longer delivery distances and higher transported volumes

  • Increase in energy & utilities expenses due to Yugragazpererabotka

consolidation from March 2014

(1) Operating expenses before equity-settled share-based payment plans. (2) Transportation, logistics and rent.

NET OPERATING EXPENSES STRUCTURE AND DYNAMICS

Net Operating Expenses(1)

26

Y-o-Y dynamics

205 286 2013 2014

RR bln

27 17 15 3 11 10 9 3 2 Feedstock & materials Transportation & logistics Energy & utilities Staff costs Depreciation & amortisation

%

Goods for resale

Structure

76% 79% +39.1%

Key Factors

– % of revenue

x%

2014

Repairs & maintenance Services from 3rd parties Rent

6.4 48.1 2013 2014

Goods for Resale

RR bln

+645.4% 2% 13%

Depreciation & Amortisation

RR bln

13.5 26.3 2013 2014 +95.3% 5% 7% 25.1 27.2 2013 2014

Staff Costs

RR bln

+8.0% 9% 8% 67.2 78.1 2013 2014

Feedstock & Materials

RR bln

+16.2% 25% 22% 2013 2014 52.0 44.8

Transportation & logistics

Transportation & Rent(2)

RR bln

+16.2% 17% 14% 25.8 31.2 2013 2014

Energy & Utilities

+20.9% 10% 9%

RR bln

Rent expenses

41.6

Naphtha trading operations via Ust-Luga, ceased in 2015

slide-27
SLIDE 27

EBITDA STRUCTURE AND DYNAMICS

EBITDA Dynamics

  • Increase in EBITDA by 30.3% y-o-y to RR 102.8 bln on
  • a threefold 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

  • higher F&E EBITDA on the expanded feedstock transportation and

processing capacities

  • EBITDA margin of 28.5% in 2014, adjusted EBITDA margin of 32.2%
  • EBITDA dilution due to low-marginal naphtha trading operations in

the feedstock& energy segment

27

EBITDA and EBITDA Margin by Segment

88.3 20.8 (6.4) 102.8 77.6 7.6 (6.3) 78.9 Feedstock & Energy Petchem Unallocated Total EBITDA RR bln

78.9 102.8 10.8 13.2 0.0 EBITDA 2013 F&E Petchem Unallocated EBITDA 2014 34.9% 45.2% 14.6% 5.9% 28.5% 29.2% 2014 2013 – EBITDA margin x%

slide-28
SLIDE 28
  • Net cash from operating activities increased

by 25.2% y-o-y on

  • higher EBITDA
  • positive impact from WC changes…
  • …partially offset by higher income tax

paid due to substantial advance tax payments

  • Net cash used in investing activities

increased by 38.3% y-o-y on

  • 1st tranche payment for the acquisition of

Rosneft‟s 49% stake in Yugragazpererabotka

  • higher loans issued for financing of

Yuzhno-Priobskiy GPP construction and Poliom stake acquisition

  • …despite decrease in CapEx by 3.3%

y-o-y

  • Net cash received from financing activities

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

CASH FLOW STATEMENT HIGHLIGHTS

Year ended 31 December Change %

RR mln, except as stated

2014 2013 Net cash from operating activities 91,052 72,741 25.2% Operating cash flows before WC changes 105,313 77,916 35.2% Changes in working capital 2,016 7,059 (71.4%) Income tax paid (16,277) (12,234) 33.0% Net cash used in investing activities, including (97,370) (70,384) 38.3% Purchase of PPE (67,707) (70,010) (3.3%) Acquisition of interest in subsidiaries, net of cash acquired (20,666) (1,742) n/m Additional contribution to the share capital of joint ventures (5,875) (6,299) (6.7%) Loans issued (4,801) (946) 407.5% Net cash from / (used in) financing activities, including 24,093 (7,928) n/m Net proceeds from debt 34,346 4,513 n/m Dividends (14,073) (14,008) 0.5% Effect of exchange rate changes on cash and cash equivalents 1,944 (51) n/m Net increase / (decrease) in cash and cash equivalents 19,719 (5,622) n/m

Key Developments Key Highlights

28

slide-29
SLIDE 29

27 3 70 47.6 46.2 30.2 66.9 47.5 16.3 2015 2016 2017 2018 2019 After 2019

1 Mar‟15 RR bln

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

1 Mar‟15

% RR bln, except as stated 1 Mar 2015(2)(3) 31 Dec 2014 Change, % vs 31 Dec 2014 Total debt 254.7 206.3 23.5% Maturity profile Short-term 67.7 56.2 20.4% Long-term 187.0 150.1 24.6% Currency split USD 177.7 ($2.9 bln) 159.2 ($2.8 bln) 11.6% RR 69.0 39.0 76.8% EUR 8.0 8.1 (1.2%) Credit lines 145.9 135.3 7.8% Committed 22.2 53.0 (58.1%) Uncommitted 123.7 82.3 50.3%

DEBT STRUCTURE AND MATURITY PROFILE

29

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

  • f 61.2718 and 68.6857 as of 1 March 2015, respectively.

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

RR bln, except as stated 31 Dec 2014 31 Dec 2013 Change, % vs 31 Dec 2013 Total debt 206.3 100.5 105.3% Cash & cash equivalents 27.7 7.9 248.1% Net debt 178.6 92.5 93.1% Average loan tenor (years) 2.5 2.7 Available credit lines 135.3 66.7 102.8% Debt / EBITDA 2.01x 1.27x Net debt / EBITDA 1.74x 1.17x Net debt / EBITDA (in $) 1.19x 1.14x EBITDA / Interest(1) 16x 17x

Key Figures

USD RR EUR

  • Total debt increased 2.0x y-o-y primarily due to
  • substantial RR depreciation
  • new borrowings to fund the acquisition of a 49% stake in

Yugragazpererabotka

  • Accumulation of cash balances pending the USD 1 bln
  • utstanding payment to Rosneft
  • Net debt increased by 93.1%
  • As of 31 December 2014, all of the debt was unsecured
slide-30
SLIDE 30

APPENDIX

1. Business Description: Additional Details 2. FY 2014 Operational and Financial Results 3. Q1 2015 Limited Operational Update 4. Exposure to Oil Prices & FX, Market Prices 5. Corporate Governance & History 6. Investment Programme Results 7. Yugragazpererabotka Transaction

30

slide-31
SLIDE 31
  • Macroeconomic storm in Q1‟15
  • Collapsed prices for oil (-49.4% y-o-y) and majority of

derivative products (in USD terms)

  • 1.9% y-o-y GDP decline in Russia; still strong GDP growth

in China (7.0% y-o-y); resumed growth in EU GDP (1.2% y-o-y) and optimistic growth in US GDP (3.0% y-o-y)

  • Accelerating inflation in Russia (CPI of 16.9% y-o-y and

PPI of 12.9% y-o-y in Q1‟15)

  • Substantial y-o-y RR depreciation against USD and EUR
  • Avg. RR/USD rate up by 80.8% y-o-y
  • Avg. RR/EUR rate up by 48.1% y-o-y
  • BoD approval of SIBUR 2015 CAPEX plan at RR 64.7 bln

(March 2015)

  • Launch of ZapSibNeftekhim construction (February 2015)
  • Major EP contractors engaged; construction at the initial

stage

  • 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)

  • In-principle approval from Coface for ECA cover for

French EP contract

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

91% in Q1‟15

  • SIBUR ratings affirmed
  • Ba1/Moody‟s (affirmed in March 2015)
  • BB+/Fitch (affirmed in February 2015)

KEY HIGHLIGHTS

  • Acquisition of a 49% stake in Yugragazpererabotka and

new commercial agreements with Rosneft (March 2014)

  • Final installment for a 49% stake in Yugragazpererabotka

paid in April 2015

  • Termination of low-margin naphtha trading operations via

Ust-Luga (2015) External Environment SIBUR Key Developments One-off Factors

31

slide-32
SLIDE 32

KEY OPERATIONAL HIGHLIGHTS

  • APG processing volumes increased by 1.4% y-o-y to 5.1 bcm
  • Raw NGL fractionation volumes(1) increased by 36.0% y-o-y to 1.9 mt
  • LPG production volumes increased by 23.6% y-o-y to 1.3 mt
  • LPG sales volumes increased by 19.1% y-o-y to 1.0 mt
  • PP production volumes increased by 2.3x y-o-y to 149.3 kt
  • Plastics & organic synthesis sales volumes increased by 26.6% y-o-y to 222 kt

Volumes Revenue

  • Revenue from sales of energy products(2) increased by 6.0% y-o-y to RR 43.8 bln
  • Revenue from sales of petrochemical products increased by 46.0% y-o-y to RR 41.2 bln
  • Basic polymers sales revenue increased by 64.8% y-o-y to RR 12.2 bln
  • Synthetic rubbers sales revenue increased by 35.1% y-o-y to RR 9.1 bln
  • Plastics and organic synthesis sales revenue increased by 48.6% y-o-y to RR 14.5 bln

Notes: (1) Including fractionation volumes under processing arrangements. (2) Adjusted for naphtha trading operations via Ust-Luga, ceased in 2015.

32

slide-33
SLIDE 33

MACRO ENVIRONMENT

33

Russian GDP Growth (y-o-y)(1) Average Exchange Rate (y-o-y)(3) Consumer Price Index (y-o-y)(1) Producer Price Index (y-o-y)(1)

0.6% (1.9%) Q1 2014 Q1 2015 35.0 63.2 Q1 2014 Q1 2015 +80.8% RR / USD 6.9% 16.9% Q1 2014 Q1 2015

Source: (1) Russian Federal State Statistics Service (2) Preliminary Data (3) CBR

5.2% 12.9% Q1 2014 Q1 2015

(2)

slide-34
SLIDE 34

MARKET ENVIRONMENT(1)

Source: Argus, Platts, Bloomberg, ICIS, Chemease, Malaysian Rubber Board, Federal Tariff Service of Russian Federation Notes: (1) Prices quoted in EUR or RR are converted to USD at average FX rates for the respective periods.

34

0.0 1.0 2.0 3.0 Q1 2014 Q1 2015 Natural rubber Styrene-butadiene rubber Butadiene Butyl rubber Styrene 0.02 0.04 0.06 0.08 0.0 0.3 0.6 0.9 1.2 Q1 2014 Q1 2015 Brent Naphtha LPG CIF ARA (large) MTBE LPG DAF Brest Natural gas (RHS) (34.1%) (48.1%) (29.1%) (39.2%) 0.5 1.0 1.5 2.0 Q1 2014 Q1 2015 2-ethylhexanol Expandable polystyrene MEG Butyl acrylate PET 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Q1 2014 Q1 2015 PP LDPE

Energy Products Basic Polymers

(49.4%) (48.9%) (25.9%) (28.6%)

Synthetic Rubbers Plastics & Organic Synthesis

(39.8%) (32.2%) (30.5%) (40.0%) (27.5%) (33.8%)

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

(44.7%) (20.3%) (53.1%) (59.0%)

slide-35
SLIDE 35

1Q 2014 1Q 2015 (50.6%) USD mln (41.4%) 1,419.4 1,181.1

USD Equivalents(1) (illustrative)

ENERGY PRODUCTS: SALES REVENUE

35

7.1 9.9 Q1 2014 Q1 2015 Natural gas +39.8% RR bln 2.9 0.5 Q1 2014 Q1 2015 Raw NGL (80.9%) RR bln 4.4 5.1 Q1 2014 Q1 2015 MTBE +17.8% RR bln 19.0 19.6 Q1 2014 Q1 2015 RR bln +3.4% LPG 15.2 8.2 Q1 2014 Q1 2015 Naphtha (46.2%) RR bln +10.8%

Revenue excluding naphtha trading operations Notes: (1) Values in USD estimated based on average RR/USD rate of 63.1919 and 34.9591 in Q1 2015 and Q1 2014, respectively.

41.3 1Q 2014 1Q 2015 (10.6%) RR bln +6.0% Russian Roubles 49.6 44.3 701.6

slide-36
SLIDE 36

530 311 Q1 2014 Q1 2015 Q1 2014 Q1 2015 +45.3% 341 350 Q1 2014 Q1 2015

+2.6%

ENERGY PRODUCTS: PRODUCTION AND SALES VOLUMES, PRICE DYNAMICS

LPG 828 986 Q1 2014 Q1 2015 +19.1% (13.2%) Natural Gas Naphtha

36

Volumes excl.naphtha trading operations

(2.6%) (41.3%) +13.9% Q1 2014 Q1 2015 +23.6% 1,076 1,330 Raw NGL Q1 2014 Q1 2015 (3.7%) +45.1% 2,898 4,205

mln cubic metres

Q1 2014 Q1 2015 +28.1% 1,001 1,282 Q1 2014 Q1 2015 +36.0% 1,377 1,873

Change in effective average selling price (RR), %

3,030 4,404 Production Sales Production Sales Production Sales Production Fractionation

‟000 tonnes ‟000 tonnes ‟000 tonnes

  • Excl. fractionation volumes

under processing arrangements

+14.2%

slide-37
SLIDE 37

20 40 60 80 100 120 200 400 600 800 1,000 1,200 LPG DAF Brest LPG price net of duty Brent (RHS) 20 40 60 80 100 120 200 400 600 800 1,000 1,200 Naphtha CIF NWE Naphtha price net of duty Brent (RHS)

37

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

Oil price and export duties impact on product price

LPG DAF Brest case

20 40 60 80 100 120 200 400 600 800 1,000 1,200 LPG CIF ARA (large) LPG price net of duty Brent (RHS)

Oil price and export duties impact on product price

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 30% 70% 110% 150% 190% 230% Brent Naphtha CIF NWE LPG CIF ARA (large) LPG DAF Brest MTBE Natural gas USD / RR Rebased to 100

slide-38
SLIDE 38

38

PETROCHEMICALS: SALES REVENUE

28.2 41.2 Q1 2014 Q1 2015 +46.0% 807.7 652.2 Q1 2014 Q1 2015 (19.2%)

9.8 14.5 Q1 2014 Q1 2015 Plastics & Organic Synthesis +48.6% RR bln 4.3 5.4 Q1 2014 Q1 2015 Intermediates & Other +24.8% RR bln 7.4 12.2 Q1 2014 Q1 2015 Basic Polymers RR bln +64.8% 6.7 9.1 Q1 2014 Q1 2015 Synthetic Rubbers +35.1% RR bln

Notes: (1) Values in USD estimated based on average RR/USD rate of 63.1919 and 34.9591 in Q1 2015 and Q1 2014, respectively.

RR bln Russian Roubles USD mln

USD Equivalents(1) (illustrative)

slide-39
SLIDE 39

PETROCHEMICALS: PRODUCTION AND SALES VOLUMES, PRICE DYNAMICS

Basic Polymers Synthetic Rubbers

39

133 216 Q1 2014 Q1 2015 +61.9% 97 104 Q1 2014 Q1 2015

+7.5%

139 186 Q1 2014 Q1 2015 +33.8% +23.2% 91 104 Q1 2014 Q1 2015 +18.2% +14.2% Production Sales

Change in effective average selling price (RR), %

Production Sales Plastics & Organic Synthesis 175 222 Q1 2014 Q1 2015 +26.6% +17.4% 216 260 Q1 2014 Q1 2015 +20.4% Production Sales

‟000 tonnes ‟000 tonnes ‟000 tonnes

slide-40
SLIDE 40

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

40

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 Butyl rubber Styrene Brent 20% 40% 60% 80% 100% 120% Polystyrene, EPS block FOB Korea MEG Contract, FD NWE T2 2-ethylhexanol Spot, FD NWE Butyl acrylate Spot, FD NWE PET FOB China, Spot Brent

slide-41
SLIDE 41

41

KEY FEEDSTOCK PURCHASES

3.0 5.5 7.3 5.0 1Q 2014 1Q 2015

+84.1%

(31.0%) 10.5 10.3 +2.7%

RR bln

Hydrocarbon Feedstock Purchases – Y-o-Y NGLs APG 6.3 5.5 6.8 5.0 4Q 2014 1Q 2015 (12.4)% (25.9%) 10.5 13.1 (19.4%)

RR bln

NGLs APG Hydrocarbon Feedstock Purchases – Q-o-Q APG Purchasing Volumes NGLs Purchasing Volumes 903 587 1Q 2014 1Q 2015 (35.0%) 3,633 5,107 1Q 2014 1Q 2015 +40.6%

mln cubic metres ‟000 tonnes

slide-42
SLIDE 42

27 5 68 44.3 61.8 27.5 57.3 45.9 18.6 2015 2016 2017 2018 2019 After 2019

31 May‟15 RR bln

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

31 May‟15

% RR bln, except as stated 31 May 2015(1) 31 Mar 2015(1) Change, % vs 31 Mar 2015 Total debt 255.4 265.6 (3.8%) Maturity profile Short-term 97.9 71.1 37.7% Long-term 157.5 194.5 (19.0%) Currency split USD 174.4 181.4 (3.9%) RR 68.3 70.2 (2.7%) EUR 12.7 14.0 (9.3%) Credit lines 195.6 222.1 (11.9%) Committed 111.4 114.5 (2.7%) Uncommitted 84.1 107.6 (21.8%)

DEBT STRUCTURE AND MATURITY PROFILE

42

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.

RR bln, except as stated 31 Mar 2015(1) 31 Dec 2014 Change, % vs 31 Dec 2014 Total debt 265.6 206.3 28.7% Cash & cash equivalents 44.8 27.7 62.0% Net debt 220.7 178.6 23.6% Average loan tenor (years) 2.7 2.5 Available credit lines 222.1 135.3 64.2%

Key Figures

USD RR EUR

  • Total debt increased by 28.7% YTD (+23.9% in USD terms)

primarily due to

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

Yugragazpererabotka

  • Accumulation of cash balances pending the USD 1 bln

payment to Rosneft

  • Net debt increased by 23.6% YTD in RR terms (+18.9% in

USD terms)

  • As of 31 March 2015, all of the debt was unsecured
slide-43
SLIDE 43

FINANCIAL CALENDAR – 2015

43

Event Date Q1 2015 Limited Operational Update 10 June 2015 H1 2015 Operational and Financial Results Early Q4 2015 9M 2015 Operational and Financial Results December 2015

  • On 1 January 2015, SIBUR started migration to a SAP-based ERP and consolidation systems,

which has resulted in delays in our IFRS disclosure schedule.

slide-44
SLIDE 44

APPENDIX

1. Business Description: Additional Details 2. FY 2014 Operational and Financial Results 3. Q1 2015 Limited Operational Update 4. Exposure to Oil Prices & FX, Market Prices 5. Corporate Governance & History 6. Investment Programme Results 7. Yugragazpererabotka Transaction

44

slide-45
SLIDE 45

361 286

Currency Nature Currency Nature

45

EXPOSURE TO OIL PRICES AND FX

2014 RR bln

21% 10% 3%

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 and other fuels Raw NGL Plastics & organic synthesis Basic polymers Synthetic rubbers Intermediates & other chemicals Processing services & other sales

6% 27% 18%

Feedstock & materials

  • APG: indexed in line with FTS, some

contracts account for changes in NGLs netbacks

  • NGLs priced at netbacks

Goods for resale

  • low-marginal trading operations

Transportation, logistics & rent Energy & utilities Staff costs D&A Repairs & maintenance Other

Correlation with Oil Correlation with Oil

     

 

 S



   

US dollar Russian rouble Naphtha trading operations

ILLUSTRATIVE

Revenue Categories Revenue Net OpEx Categories

19% 6% 13% 11% 8% 3% 17% 11% 9% 9% 3% 6%

Net OpEx(1) (1) Operating expenses before equity-settled share-based payment plans.



slide-46
SLIDE 46

20 40 60 80 100 120 200 400 600 800 1,000 1,200 LPG DAF Brest LPG price net of duty Brent (RHS) 20 40 60 80 100 120 200 400 600 800 1,000 1,200 Naphtha CIF NWE Naphtha price net of duty Brent (RHS)

46

RR / USD – oil price negative correlation Oil price and export duties impact on product price

LOWER EXPORT DUTIES AND RR DEPRECIATION SUPPORT ENERGY PRODUCT REVENUES ON DECREASING OIL

Oil price and export duties impact on product price

LPG DAF Brest case

20 40 60 80 100 120 200 400 600 800 1,000 1,200 LPG CIF ARA (large) LPG price net of duty Brent (RHS)

Oil price and export duties impact on product price

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

slide-47
SLIDE 47

20% 40% 60% 80% 100% 120% Polystyrene, EPS block FOB Korea MEG Contract, FD NWE T2 2-ethylhexanol Spot, FD NWE Butyl acrylate Spot, FD NWE PET FOB China, Spot Brent 20% 40% 60% 80% 100% 120% Styrene butadiene rubber Natural Rubber Butadiene Butyl rubber Styrene Brent 20% 40% 60% 80% 100% 120% LDPE CFR China film, Spot PP rafia China Main Port, Spot Brent 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

47

slide-48
SLIDE 48

MARKET PRICES

48

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 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 Butyl rubber IIR 1751 (yanshan) 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

slide-49
SLIDE 49

APPENDIX

1. Business Description: Additional Details 2. FY 2014 Operational and Financial Results 3. Q1 2015 Limited Operational Update 4. Exposure to Oil Prices & FX, Market Prices 5. Corporate Governance & History 6. Investment Programme Results 7. Yugragazpererabotka Transaction

49

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SLIDE 50
  • SIBUR‟s Board of Directors includes high profile independent members
  • Institutionalised board committees in alignment with global best practices
  • Internal processes are largely governed by specific and formalized regulation
  • IFRS financial reporting since 2003

50

(1) As of 5 September 2014. (2) Elected on 28 April 2015. (3) Elected on 5 May 2015. (4) Independent Directors. (5) Chairmen of the Board Committees.

Highest Corporate Governance Standards Board of Directors(2) Board Committees(3)

Current & former senior SIBUR managers

Shareholder Structure(1)

Leonid Mikhelson Member of the BOD, Chairman of the Management Board of OAO NOVATEK Gennady Timchenko Co-founder of Gunvor Alexander Dyukov CEO of OAO Gazprom Neft Vladimir Razumov Member of the Management Board, Deputy Chairman of the Management Board - Executive Director of OOO SIBUR Kirill Shamalov Member of the Board of Directors of PJSC SIBUR Holding Dmitry Konov Chairman of the Management Board, PAO SIBUR Holding, CEO of OOO SIBUR Ruben Vardanian(4) Managing Director and Chairman of the Board of Directors of ZAO Sberbank CIB Kirill Dmitriev(4) CEO of RDIF Ilya Tafintsev Director, Strategic Projects, OAO NOVATEK Denis Nikienko Member of the Board

  • f Directors of PJSC

SIBUR Holding

ESTABLISHED GOVERNANCE PRACTICES AND BALANCED BOARD STRUCTURE

Gennady Timchenko Leonid Mikhelson 50.2 21.3 15.3 13.2 % Kirill Shamalov Human Resources & Remuneration Committee Audit Committee Strategy and Investments Committee Ilya Tafintsev(5) Vladimir Razumov Kirill Shamalov Ruben Vardanian(4)(5) Alexander Dyukov Denis Nikienko Alexander Dyukov(5) Kirill Dmitriev(4) Vladimir Razumov Gennady Timchenko Kirill Shamalov

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SLIDE 51

51

HIGHLY EXPERIENCED MANAGEMENT TEAM WITH EXTENSIVE TRACK RECORD

Dmitry Konov

CEO Chairman of the Management Board

Vladimir Razumov

Deputy Chairman of the Management Board

Mikhail Karisalov

Deputy Chairman of the Management Board

Alexey Kozlov

Member of the Management Board

Pavel Malyi

CFO Deputy Chairman of the Management Board

  • IMD MBA degree
  • 11 years at SIBUR
  • Former Managing

Director at AKB Trust and Investment Bank

  • Over 40 years in

petrochemical industry

  • 13 years at SIBUR
  • Former USSR

Deputy Minister of the Oil Refining and Petrochemicals Industry

  • 11 years at SIBUR
  • Former Head of

Feedstock & Energy Division at SIBUR

  • Appointed in April 2015
  • Former Deputy Head of

State Property Management in the Russian Ministry for Economic Development

  • LL.M. from Chicago

Law School

  • 4 years at SIBUR
  • Former Head of UBS

Investment Bank, Russia and CIS EXPERIENCE HIGHLIGHTS

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SLIDE 52

SIBUR’S EVOLUTION AS INDUSTRY LEADING PLAYER

  • Feb-2003: Mr. Dyukov appointed CEO
  • Core management team formed
  • Production flow streamlined
  • Number of efficiency initiatives realised (sales,

procurement, operations)

  • Development and implementation of

centralised SCM system

  • Organisational restructuring: creation of

business units

  • Asset consolidation
  • Debt restructuring

Creating fundamentals for growth

  • Dec-2006: Mr. Konov appointed CEO
  • Long-term development strategy formulated
  • Formalized investment procedures and

processes in place

  • Development of capex execution capabilities
  • Headcount optimization
  • Successful navigation through 2008-2009

global economic crisis

  • Modernization and expansion of Feedstock &

Energy segment assets

  • JVs with TNK-BP(1) and SolVin created
  • Selective M&A

Emerging as industry-leading player

  • Mr. Mikhelson becomes controlling shareholder
  • Disposal of non-core assets (fertilisers and

tyres businesses)

  • Upgrade of SCM system
  • Operational improvements
  • Development and implementation of SIBUR

production system

  • ERP implementation and IT upgrade
  • Establishment of international JVs

(Reliance, Sinopec)

  • Selective M&A
  • In March 2014, SIBUR gained full control over

Yugragazpererabotka, previously JV with Rosneft

  • Completion of 5 investment projects, including

large-scale petrochemical project in Tobolsk

  • Decision to proceed with ZapSibNeftekhim

(ZapSib-2) project

Consistent strategy implementation

2003 – 2005 2006 – 2009 2010 – present 52

Notes: (1) On 30 July 2013, TNK- BP was renamed to RN Holding following the acquisition by Rosneft.

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SLIDE 53

APPENDIX

1. Business Description: Additional Details 2. FY 2014 Operational and Financial Results 3. Q1 2015 Limited Operational Update 4. Exposure to Oil Prices & FX, Market Prices 5. Corporate Governance & History 6. Investment Programme Results 7. Yugragazpererabotka Transaction

53

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SLIDE 54

Feedstock processing capacity, Transportation infrastructure Petrochemicals Other TOTAL

INVESTMENT PROGRAMME

RR bln (excl. VAT)

54

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

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SLIDE 55

2014

55

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

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SLIDE 56

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

56

  • 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

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SLIDE 57

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

57

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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SLIDE 58

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

58 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

slide-59
SLIDE 59

APPENDIX

1. Business Description: Additional Details 2. FY 2014 Operational and Financial Results 3. Q1 2015 Limited Operational Update 4. Exposure to Oil Prices & FX, Market Prices 5. Corporate Governance & History 6. Investment Programme Results 7. Yugragazpererabotka Transaction

59

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SLIDE 60

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 60

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SLIDE 61

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

61

Notes: (1) Items other than revenue and feedstock costs. (2) For the purpose of dividends calculation net profit will be adjusted for this charge.

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SLIDE 62

INVESTOR RELATIONS CONTACTS

62

SIBUR_IR@sibur.ru Phone: +7 (495) 777-55-00 (*39-47) www.investors.sibur.com