[PPT] - GAZPROM: 1Q2020 IFRS RESULTS JULY 14, 2020 1 1Q2020 IFRS RESULTS PowerPoint Presentation

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1Q2020 IFRS RESULTS

GAZPROM: 1Q2020 IFRS RESULTS

JULY 14, 2020

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1Q2020 IFRS RESULTS

Alexan ander der Ivannik nikov

Head of Departm tment nt

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1Q2020 IFRS RESULTS

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.

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1Q2020 IFRS RESULTS

COVID-19: RESPONSE TO THE OUTBREAK

Mar April il – May June e – July ly

KEY MEASURES

COVID-19

9 hotl tlines ines

Office-based staff shifted

ted to remote

te work, working

hours and pay condit ition

ns

s upheld

Business trips curtailed; self-isolation for 14 days on

arrival

Requirement to seek medical assistance in the event
f respiratory symptoms, compliance with state self-

isolation guidance 30 30 March rch–11 11 May 2020 20 – paid id holid iday ay across ross Russia ssia

Uninterrupted operation and premi

mium m rates tes of pay at continuous process facilities

Safe rota

tation

n proc
ced

edures es, including a 14 day quarantine before shift

Longer shifts
Provision of PPE to all employees
Sanitization of buildings, premises, vehicles and

equipment Early April 2020: COVID-19 outbreak at the Chayandinskoye field



Isolation facility equipped with ventilators and oxygen concentrators



Quarantine facility for those in contact with positive patients



Regular PCR testing



Provision of PPE to all employees



In May, almost

st 7,000

000 peopl

ple

e were transported ported away y from the field Early June 2020: lockdown

wn at the field was

s lifted by state authorities

RESULTS OF RESPONSE TO THE OUTBREAK

Phas ased lifting of

f restri

tricti ctions

ns
Remote work preserved for part of office-based staff
Admission to work after negative PCR test result,

mandatory PCR test every 14 days

Office-based employees to start and finish work at

different hours

Employees to wear PPE and keep a social distance
Consecutive normalization of work at all levels as

the rate of infection is lowering in Russia

CHAYANDINSKOYE FIELD CASE

Safe working conditions for employees
Uninterrupted operation of hydrocarbon production, transportation and

processing facilities

Uninterrupted supplies, including gas supplies for export

SOCIAL RESPONSIBILITY

The Members of the Management Committee donated their monthly salaries to

the Botkin Infectious Disease Hospital in St. Petersburg;

Gazprom Workers’ Union allocated over RUB70 mln to buy PPE and combat
coronavirus. Member volunteer teams to help veterans were set up;
Gazprom and its subsidiaries constantly make donations to and try to meet

urgent needs of local hospitals fighting COVID-19 in the regions of presence :

 With the active assistance of Gazprom the Lenexpo exhibition complex in

St. Petersburg was converted into a temporary hospital with 1,000 beds for

COVID-19 patients;

 Supplies of professional PPE (ex. biological protection suits) to medical staff

and contributions to local hospitals to purchase new medical equipment (ICU ventilators, oxygen concentrators).

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1Q2020 IFRS RESULTS

A PACK OF MACROECONOMIC BLACK SWANS: COVID PANDEMIC, OIL AND GAS PRICES CRASH AND RUBLE

DRAMATIC WEAKENING …

…WEATHER CONDITIONS IN EUROPE IN 1Q2020 WERE NOT FAVORABLE FOR GAS CONSUMPTION

1Q2020 VS 1Q2019 MARKET ENVIRONMENT

HIGHLIG LIGHTS EURO ROPEA EAN GAS PRICES ES

USD/mmcm

66.11 66.09 55 65 75 1Q2019 1Q2020

0% END OF PERIOD OD USD/RUB EXCHAN HANGE E RATE WEATHE HER R INDEX EX IN EURO ROPE

61.91 77.73 55 65 75 Dec 31, 2019 Mar 31, 2020

+26% AVERA ERAGE E USD/RUB EXCHAN HANGE E RATE

AVERAGE RUBLE

RATE IS THE SAME IN 1Q2019 AND 1Q2020, BUT…

…DURING 1Q2020

RUBLE IS WEAKENING BY 26% - RESULTED IN FX LOSSES

20 40 60 80 100 200 300 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20

TTF 1 Month h Ahead Brent

USD/bbl

1 1 Index is calculated as a sum of degree days for the appropriate month in more than 90 European countries 2 HDD (heating degree days) – degree day a the heating season CDD (cooling degree days) – degree day of a cooling season 5000 10000 15000 20000 Jan Feb Mar Apr Jul Jun Jul Aug Sep Oct Nov Dec

HDD+CDD

Range (2000-2019) Average (2000-2019) 2019 2020 2

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1Q2020 IFRS RESULTS 1,740 507 507

116

419 419 439 439 19 19 3,217

200

800 1,800 2,800 3,800

Sales EBITDA Net loss CAPEX Operating CF adj. FCF adj. Net debt adj.

1 2 3 4

(1

POSITIVE FCF DUE TO LOWER CAPEX
RUBLE WEAKENING LED TO FX LOSSES AND NEGATIVE NET PROFIT AS WELL AS THE INCREASE OF NET DEBT
MODERATE DEBT BURDEN MAINTAINED

1Q2020 IFRS RESULTS

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 December 31, 2019

33

33% +29% +29%

122%

2%

5%

5%

Adjusted for analytical purposes*

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

24%

24%

RUB bn

91

91%

20

20%

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1Q2020 IFRS RESULTS

117 62 71 105 87 50 100 1Q19 2Q19 3Q19 4Q19 1Q20 NET SALES TO FSU 12 7 8 12 9 167 155 150 153 146 50 100 150 200 5 10 15 1Q19 2Q19 3Q19 4Q19 1Q20 VOLUMES AVERAGE PRICE IN FSU 84.3 42.1 36.5 73 77 4,141 4,020 4,051 4,182 4,181 1000 2000 3000 4000 25 50 75 100 1Q19 2Q19 3Q19 4Q19 1Q20 VOLUMES AVERAGE PRICE IN RUSSIA

GAS BUSINESS

RUB/mcm bcm RUB bn

Calculations may differ due to rounding. 1 Net of value added tax (VAT) 2 OC — other countries, including LNG sales 3 VAT is not charged on export sales 4 Net of custom duties and excise tax on gas exports

bcm USD/mcm

1 3.4

RU RUSSIA IA EURO ROPE E & OC 2 FSU

USD/mcm bcm RUB bn RUB bn

3.4

(7%) (45%) (26%)

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1Q2020 IFRS RESULTS

OIL AND GAS S CONDEN ENSA SATE, E, REFIN INED ED PRO RODUCT CTS

OIL AND ENERGY BUSINESS

Calculations may differ due to rounding. 1 Net of value added tax (VAT), excise tax and custom duties.

REVENUE E BY SEGMEN MENT1

RUB bn

1Q2019 1Q2020 020 ELECTRICIT RICITY Y AND HEAT

RUB bn

(15%) (9%) %)

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1Q2020 IFRS RESULTS

CHANGES IN WORKING CAPITAL (A PART OF OPERATING

CASH FLOWS) INCLUDE CHANGES IN ST BANK DEPOSITS

OPERATING CASH FLOWS AND FREE CASH FLOW NEED TO

BE ADJUSTED FOR CHANGES IN ST BANK DEPOSITS FOR ANALYTICAL PURPOSES

IMPACT OF BANK DEPOSITS

BANK DEPOSITS ARE NOT INCLUDED IN СASH AND

CASH EQUIVALENTS

NET DEBT AND NET DEBT/EBITDA NEED TO BE

ADJUSTED FOR BANK DEPOSITS FOR ANALYTICAL PURPOSES ST & LT BANK NK DEPOSIT SIT VOLUM UMES ES APPL PLYIN ING OF LT AND ST BANK K DEPOSIT SITS S IS AIMED ED AT IMPRO ROVIN ING THE EFFIC ICIEN IENCY CY OF LIQU QUID IDIT ITY Y MANAGEM EMEN ENT

RUB bn RUB bn  EARLY WITHDRAWAL CLAUSE  DEPOSIT TERM OF OVER 3 MONTHS

KEY FEA EATURES RES OF BANK K DEPOSIT SITS: S: ST BANK K DEPOS OSIT IT CHANGES ES

1 Reported as a part of Other current assets and Other non-current assets Source: Gazprom 1Q2020 IFRS report, note 13

676 676 798 798 330 330 186 186

IMPACT CT OF BANK K DEPOS OSIT ITS S ON NET DEBT: IMPACT CT OF CHANGES ES IN ST DEPOS OSIT ITS ON CASH H FLOWS:

523 523

1

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1Q2020 IFRS RESULTS OCF before working capital changes Net working capital and

perating items

changes Changes in ST deposits Tax paid OCF reported Adjustment for decrease in ST deposits OCF adjusted CAPEX FCF adjusted

1Q2020 ADJUSTED FREE CASH FLOW

RUB bn

CHANGES IN BANK DEPOSITS

FCF ADJUSTED ED FO FOR CHANGES ES IN ST BANK K DEPOS OSIT ITS S REMAIN INS S POSITIV IVE E AT RU RUB 19 BN BN ($0.2 2 BN BN) ) IN IN 1Q2020

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1Q2020 IFRS RESULTS

CAPITAL EXPENDTURES

RUB bn

CASH H CAPIT ITAL L EXPEN ENDTURES ES SEGMEN MENT CAPEX EX

(5%)

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1Q2020 IFRS RESULTS

KEY DEBT METRICS

NET DEBT IN 1Q20201 TOTAL L DEBT CASH&EQU H&EQUIV IVALEN LENTS S (INCL.

CL. DEPOSIT

SITS) S)

1 Net Debt adjusted for the bank deposits reported as a part of Other current assets and Other non-current assets (see Slide 9 for details). Based on calculations in USD.

NET DEBT ADJUSTED ED FO FOR BANK K DEPOS OSIT ITS1

USD bn USD bn

CREDIT RATINGS Fitch h BBB / stable Moody dy's 's Baa2 / stable S&P BBB– / stable Dagong

ng

AAA / stable ACRA RA AAA (RU) / stable

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1Q2020 IFRS RESULTS

NEW DIVIDEND POLICY

OUTL TLOO OOK

RUB bn

TARGET DIVIDEND PAYOUT FOR 2020 —

40% OF ADJUSTED IFRS NET INCOME

40% OF 1Q2020 ADJUSTED IFRS NET

INCOME PER SHARE – 4.87 RUB/SHARE

TARGET PAYOUT LEVEL — 50% OF NET

INCOME FOR 2021 AND AFTER

CONSERVATIVE FINANCIAL POLICY

AIMED AT SECURING DIVIDEND PAYOUTS OUT OF FREE CASH FLOW

COMMITMENT TO THE NEW DIVIDEND

POLICY DESPITE CHALLENGING MARKETS

CALCU CULA LATION ION OF ADJUS JUSTE TED D NET T INCOM OME E FOR 1Q2020

DIVID IDEN END PAYMEN YMENT AS PER APPR PROVED ED POLIC ICY Y IS GAZP ZPROM'S OM'S PRIORIT RITY

288 288

1 1 – The difference between the share in the profit of affiliated entities and JVs and proceeds from affiliated entities and JVs

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1Q2020 IFRS RESULTS

RESILIENCE TO EXTERNAL CHALLENGES

THE INDUSTRY IS FACING THE MOST DIFFICULT SITUATION OVER A LONG PERIOD OF TIME
ALL GLOBAL OIL AND GAS PLAYERS HAVE BEEN SEVERELY AFFECTED BY A UNIQUE COMBINATION OF HEADWINDS
GAZPROM MAINTAINS ITS STRONG POSITION DUE TO A NUMBER OF LONG-TERM FACTORS AND RESPONSE MEASURES

FUNDAMENT AMENTAL AL ADVANT ANTAGE GES

 Low production cash cost  Leadership in the European gas market  Diversification secured by the launch of gas

supplies to China

 Balanced portfolio of long-term contracts

1

ROBUS UST FINAN ANCIAL IAL POSITION ITION

 Moderate leverage  Large short-term liquidity buffer  Conservative financial policy  Free cash flow upside through the launch

f key projects

 Favourable FX breakdown of cash flows

2

FURTHE THER OPTIM IMIS ISATION TION EFFORTS TS

 Lower OPEX cap  Lower CAPEX financing limits  Search for additional sources of cash flow

ptimisation

 Leverage control

3

FOCUS ON DIVIDE IDEND ND PAYOU OUTS TS AND SUSTAINA INABLE DEVELOPME OPMENT NT

 Commitment to the Dividend policy  Social responsibility  Initiatives on sustainable development,

incl. ESG

 Focus on transparency and investor

relations

4

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1Q2020 IFRS RESULTS

ADDITIONAL INFORMATION

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1Q2020 IFRS RESULTS

Source: Company data, Bloomberg, Bank of Russia website 1 OC — Other countries: including LNG sales

USD/RUB USD/bbl USD/mcm RUB/mcm

1

66.13 66.11 64.73 77.73 20 40 60 80 1Q2019 1Q2020 USD/RUB AVERAGE RATE USD/RUB AS OF THE END OF PERIOD 259.1 162.1 50 100 150 200 250 300 1Q2019 1Q2020 AVERAGE GAZPROM GAS SALES PRICE IN EUROPE & OC

MARKET CONDITIONS IN 1Q2019 AND 1Q2020

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1Q2020 IFRS RESULTS

131.3 122.4 51.4 45.1 0.0 50.0 100.0 150.0 2018 2019 1Q2019 1Q2020 153.2 149.0 44.1 40.2 0.0 40.0 80.0 120.0 160.0 2018 2019 1Q2019 1Q2020

1%

1% 0% +2% +2%

Natur ural al gas Crude e oil Gas condens nsat ate

Gazprom Group’s volumes produced in Russia Calculations may diverge due to rounding.

OPERATING METRICS

bcm mln ton mln ton

+1% +1%

10%

10%

Electric icit ity Heat

bn kWh mln Gcal

+5% +5%

3%

3%

9%
7%

7%

12%

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1Q2020 IFRS RESULTS

1 8

RUSSIAN NATURAL GAS BALANCE

Bcm 2018 2018 2019 2019 1Q2019 19 1Q2020 20 Natur ural gas resou

urces

es 810 810.64 4 811.5 .55 227.8 .82 207 207.62 62

Domestic gas production 725.41 738.41 197.17 185.41 Other sources including Central Asian and Azerbaijani gas 23.49 27.48 5.33 5.24 Gas withdrawn from underground storage in Russia, Latvia and Europe 59.33 42.85 24.52 16.23 Decrease in the amount of gas within the gas transportation system 2.42 2.82 0.80 0.75

Natur ural gas distr istrib ibution ution 810 810.64 4 811.5 .55 227 227.82 82 207 207.62 62

Domestic consumption 493.18 480.99 154.23 143.46 including needs of the gas transportation system and underground storages 40.55 38.40 10.95 8.73 Gas pumped into underground storages 56.17 53.29 1.42 0.32 Gas for LNG production 20.94 43.20 10.55 11.95 Foreign supplies 200.29 193.05 49.62 40.60 FSU supplies 36.70 37.72 11.24 10.81 Increase in the amount of gas within the gas transportation system 3.07 3.31 0.76 0.49

Source: Company Operating Data

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1Q2020 IFRS RESULTS