1

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

GAZPROM: 3Q 2018 IFRS RESULTS

DECEMBER 3, 2018

2

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

26; 124;195

Alexander Ivannikov

Head of Department

3

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

DISCLAIMERS

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.

4

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

26; 124;195

19.8 21.5

23.7 25.0 25.1

28.6

31.7

35.7

10

15

20

25

30

35

40

2016 1q17 2q17 3q17 2017 1q18 2q18 3q18

EBITDA LTM

KEY HIGHLIGHTS: STRONG FINANCIAL RESULTS IN 3Q2018

• 3q18 EBITDA growth +86% y-o-y in Rubles (+62% in 9m18)

7 consecutive quarters of LTM EBITDA growth in dollar terms

• Marginally positive Free cash flow RUB 3 bn* in 3q (vs. RUB -166* bn in 3q 2017),

RUB 369 bn* in 9m (vs. RUB -53.2* bn in 9m 2017)

• Reduction of leverage continues:

Net debt*/EBITDA decreased to 0.9 q-o-q (1.0 in 2Q2018)*

Key factors:

• Seasonally weakest quarter in a year

• Record high gas exports to Europe

• Gas, oil and oil products price growth

• High level of cost control, optimization

and prioritization of CAPEX schedule

• Ruble weakening

• Oil business growth

+81%

Key highlights:

USD bn

*Adjusted for bank deposits

5

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

26; 124;195

KEY EVENTS AND MARKET ENVIRONMENT

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

59.0 65.5

58.0

65.6

0

20

40

60

80

3q17 3q18

USD/RUB AVERAGE RATE

USD/RUB AS OF THE END OF PERIOD

USD/RUB USD/bbl

Market environment in 3q18 vs 3q17

USD/mcm

194.6

250.8

0

50

100

150

200

250

3q17 3q18

AVERAGE GAZPROM GAS SALES

PRICE IN EUROPE & OC

3,692 3,831

0

1,000

2,000

3,000

4,000

3q17 3q18

AVERAGE PRICE IN RUSSIA

RUB/mcm

1

Jan

2018

-

Nov

2018

• Gas production increased by 7.2% YoY to 365 bcm as of

9M2018

• Exports to Europe increased by 6.7% YoY to 185.4 bcm

• Over 96% of the first phase of the Power of Siberia pipeline

laid

• Offshore part of the TurkStream completed.

Gazprom and Turkey agreed on the onshore section of the

second string of the TurkStream

• Germany, Sweden, Finland and Russia granted all required

approvals to build the Nord Stream-2 pipeline.

More than 300 km of the pipeline built.

Financing was received from European energy companies

according to the agreements.

• Moody's and S&P upgraded Gazprom’s ratings to

investment grade

52.1

75.3

50.9

74.3

0

20

40

60

80

3q17 3q18

BRENT URALS USD bn

6

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

26; 124;195

33

73 88

41 33

3,692 3,942 3,974 3,823 3,831

0

1000

2000

3000

4000

0

25

50

75

100

3Q17 4Q17 1Q18 2Q18 3Q18

VOLUMES AVERAGE PRICE IN RUSSIA

55 68 72 57 57

195 219 232 238 251

0

50

100

150

200

250

300

0

20

40

60

80

100

3Q17 4Q17 1Q18 2Q18 3Q18

VOLUMES AVERAGE PRICE IN EUROPE & OC

GAS SALES

121

288

351

158 128

0

100

200

300

400

3Q17 4Q17 1Q18 2Q18 3Q18

NET SALES TO RUSSIA

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

494

674 758

653 729

0

200

400

600

800

3Q17 4Q17 1Q18 2Q18 3Q18

NET SALES TO EUROPE & OC

RUB bn

bcm

6

11 14

7 7

165 157 155 149

181

0

50

100

150

200

0

5

10

15

20

3Q17 4Q17 1Q18 2Q18 3Q18

VOLUMES AVERAGE PRICE IN FSU

51

91

111

56 69

0

50

100

3Q17 4Q17 1Q18 2Q18 3Q18

NET SALES TO FSU

bcm USD/mcm USD/mcm

1

Russia Europe & OC2 FSU

3,4 3,4

RUB bn

+5% +48% +35%

7

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

OIL AND UTILITIES BUSINESS

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

Net Sales1

561 612 620

717 800

0

200

400

600

800

1,000

3Q2017 4Q2017 1Q2018 2Q2018 3Q2018

86

154

175

99 88

0

50

100

150

200

3Q2017 4Q2017 1Q2018 2Q2018 3Q2018

RUB bn

+1%

3Q2017 3Q2018

+43%

Electricity and heat sales Crude oil and gas condensate; refined products sales

41%

54%

5%

CRUDE OIL AND GAS CONDENSATE; REFINED

PRODUCTS

GAS BUSINESS AND OTHER REVENUES

ELECTRICITY AND HEAT

RUB bn

39%

55%

6%

8

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

1,930

664

386 401 403

3

2,204

-200

300

800

1,300

1,800

2,300

Total net sales Adj. EBITDA Net profit Capex Adj. Operating

CF

Adj. FCF Adj. Net debt1 2 3 4, 5

1 EBITDA adjusted for changes in impairment provisions 2 Profit for the period attributed to shareholders of PJSC Gazprom 3 Cash capital expenditures 4 Compared to Adj. Net debt as of December 31, 2017

SUMMARY OF 3Q2018 IFRS FINANCIAL RESULTS

+35%

+137%

+7%

+86%

3Q2017 vs 3Q2018

RUB bn

RUB bn

+93% +19%

5 In order to reflect the effects of the bank deposits (reported as part of Other current and

non-current assets). See page 14

5 5

9

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

26; 124;195

OCF before

working capital

changes

Net working

capital and

operating items

changes

Tax paid

OCF

reported Capex

FCF

reported

Adjustment for

increase in

ST deposits

FCF

adjusted

1,978

205

213

1,426

1,192

235

134

369

134

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

9M2018 ADJUSTED FREE CASH FLOW BREAKDOWN*

1 Free Cash Flow = Net Cash from operating activities – Cash Capex 2 Free Cash Flow adjusted for changes in the ST bank deposits

RUB bn

FCF adjusted for changes in bank

deposits remains positive at

RUB 369 bn ($6 bn) in 9M2018 Changes in

bank deposits

* Free Cash Flow adjusted for changes in the ST bank deposits

Reported as a part

of Changes in

working capital

10

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

26; 124;195

1,952 1,747 2,068 2,204

1,491 1,083

1,199 1,308

0.9

1.5 1.4

0.9

0.0

0.5

1.0

1.5

0

2000

4000

6000

2015 2016 2017 3Q2018

CASH&CASH EQUIVALENTS (INCL. DEPOSITS)

NET DEBT ADJ. FOR BANK DEPOSITS

NET DEBT ADJ./ADJ.EBITDA

RUB bn

3 512

886

2,627

421 1

2,204

1.1

0.9

0

0.5

1

1.5

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Total Debt Cash &

equivalents

Net Debt

reported

ST deposits LT deposits Net Debt

adjusted

NET DEBT ADJ./ADJ.EBITDA

RUB bn

KEY DEBT METRICS

3Q2018 adjusted Net Debt structure

Total Debt breakdown by currency Total Debt and Net Debt adj.

Cash, cash equivalents, bank deposits

breakdown by currency

1 Calculated using dollar values of Net debt and EBITDA. Net Debt adjusted for the bank deposits reported as a part of Other current and non-current assets

RUB

20%

USD

32%

EUR

39%

Other

9%

RUB

59%

USD

21%

EUR

17%

Other

3%

1

1

11

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

26; 124;195

1 641

1 369 1 406

336 401

0

600

1200

1800

2015 2016 2017 3Q2017 3Q2018

Cash CapEx

1 CapEx breakdown as provided in Management Report

CAPITAL EXPENDITURES

(17%)

+19%

RUB bn

37%

16%

18%

19%

3%

7%

TRANSPORT

PRODUCTION OF CRUDE OIL AND GAS CONDENSATE

PRODUCTION, DISTRIBUTION AND STORAGE OF NATURAL GAS

REFINING

ELECTRICITY AND HEAT

OTHER CAPEX

The Group’s 3Q2018 CapEx breakdown1

+3%

27,053

20,464

24,100

5,695 6,117

0

5000

10000

15000

20000

25000

30000

2015 2016 2017 3Q2017 3Q2018

USD mn (24%)

+18%

+7%

12

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

26; 124;195

High competiveness

of Gazprom’s gas.

Record exports

Outstanding resource base and

infrastructure Low cost base

UNIQUE

FUNDAMENTALS

Strategic transformative projects

(capex peaking

in 2018 - 2019)

Improving gas markets

outlook.

Spare production and export

capacity

Business growth

in gas and oil

segments; further

growth potential

BUSINESS

GROWTH

STRONGER FINANCIAL

OUTLOOK

Conservative

financial policy,

cost control

Balanced

dividend policy

Improving

FCF profile

BUSINESS GROWTH, ENHANCING SUPPLY SECURITY

INVESTMENT CASE

13

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

ADDITIONAL INFORMATION

14

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

26; 124;195

• 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

Impact of bank deposits on Net debt:

• 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

XX

TOTAL DEPOSITS

ST and LT bank deposits volumes

Applying of LT and ST bank deposits is aimed at improving the efficiency of liquidity management

144

328

571 496

421 42

2

7

8

1

0

200

400

600

2016 2017 1Q18 2Q18 3Q18

LT DEPOSITS

ST DEPOSITS 186

330

579

503

-78

243 244

-35 -75

-100

-50

0

50

100

150

200

250

2016 2017 1Q18 2Q18 3Q18

RUB bn RUB bn

• Early withdrawal clause

• Deposit term of over 3 months

Key features of bank deposits2:

ST bank deposits changes

Impact of changes in ST bank deposits on Cash flows:

According to Gazprom 3Q2018 IFRS report1:

1 Source: Gazprom 3Q2018 IFRS report, page 21 2 Reported as a part of Other current assets and Other non-current assets

423

15

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

10.3

43.4

57.4

18.8

9.9

0

20

40

60

3Q17 4Q17 1Q18 2Q18 3Q18

12.6 11.9 11.7 11.9 12.7

0

5

10

15

3Q17 4Q17 1Q18 2Q18 3Q18

3.7

4.3 4.1

3.8 3.7

0

2

4

3Q17 4Q17 1Q18 2Q18 3Q18

Crude oil Gas condensate

Gazprom Group’s volumes produced in Russia

Calculations may differ due to rounding.

mt mt (1%) 1%

PRODUCTION

32.9

42.5 46.7

32.7 31.0

0

20

40

3Q17 4Q17 1Q18 2Q18 3Q18

Electricity Heat

bn kWh mn Gcal (6%) (4%)

107.3

131.4 134.1 119.3

111.7

0

50

100

150

3Q17 4Q17 1Q18 2Q18 3Q18

Natural gas

bcm 4%

16

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

RUSSIAN NATURAL GAS BALANCE

Bcm 2016 2017 9M2017 9M2018

Natural gas resources 718.20 770.29 556.2 591,6

Domestic gas production 640.40 691.19 502.9 531,8

Other sources including Central Asian and Azerbaijani gas 22.97 25.33 19.2 19,2

Gas withdrawn from underground storage in Russia, Latvia and Europe 50.98 50.45 31.4 38,7

Decrease in the amount of gas within the gas transportation system 3.85 3.31 2.7 2,0

Natural gas distribution 718.20 770.29 556.2 591,6

Domestic consumption 456.68 468.01 327.2 348,7

including needs of the gas transportation system

and underground storages 32.29 37.81 26.7 29,8

Gas pumped into underground storages 28.54 53.02 48.9 52,2

Gas for LNG production 14.70 15.46 11.3 11,3

Foreign supplies 181.68 197.40 143.9 151,5

FSU supplies 32.11 32.88 22.3 26,1

Increase in the amount of gas within the gas transportation system 4.49 3.52 2.5 1,8

Source: Company Operating Data

17

26; 124;195

150; 150; 150

68; 103; 124

69; 165; 187

245; 190; 50

100; 190; 235

90; 90; 90

140; 200; 40

1; 70; 122

Do not put anything

below this line 3Q2018 IFRS RESULTS

THANK YOU!