FROM PRODUCTION COMPANY TO NATIONAL ENERGY SERVICE PROVIDER STRATEGY 2025

February 19, 2021 CEO, of NJSC

STRATEGY 2025 WHY THE STATE OWNS NAFTOGAZ NOW

Increase security of Transform the Transportation of oil Effective representation supply and achieve energy sector and and promotion energy independence and complete gas products of Ukraine’s interests (production, reserves, market reform at international level energy efficiency) WHAT WILL BE THE FUTURE OF NAFTOGAZ IPO PETER VAN DRIEL Chief Financial Officer of Naftogaz Group

STRATEGY 2025 CRISIS 2020 HAD

SIGNIFICANT Change in gas price at TTF (MA), IMPACT ON EUR/MWh 30

OPERATIONS OF 25

ENERGY 20 COMPANIES 15 10

5

0 Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020 Jan 2021 (Global demand for primary energy, million BOE* per day) GAS WILL RETAIN ITS 382 POSITION IN COMING YEARS 355 +47% 314 WHILE THE SHARE OF +45% 274 +45% GREEN ENERGY SOURCES +21% DEMAND FOR GAS +31% +23% WILL GROW +19% +35%

+15% +13% +7% Renewables +15% ** Hydropower Atomic energy +31% +56% +4% +3% -12% Oil Coal 2010 2020 2030 2040

* BOE – barrel of oil equivalent ** Share of hydropower in global demand for primary energy is presented separately on the graph. Source: S&P Global Platts SUCCESS FACTORS Commercial Efficiency Plan 1 2 improvement

Investment Digitalization discipline 3 4 ANDRIY KOBOLYEV CEO, Naftogaz of Ukraine NJSC

STRATEGY 2025 THREE Increase production Improve trading PLATFORMS OF competency (EU) Gas Increase cost and business NAFGOTAZ investment efficiency GROUP THREE PLATFORMS OF Gas business NAFGOTAZ

GROUP Increase production Improve trading competency (EU) Increase cost and investment efficiency THREE PLATFORMS OF Gas business

NAFGOTAZ Supply Enter the heat supply market Effective and scalable model GROUP Increase production Customer base of nearly 30% Improve trading (gas, electricity, services) competency (EU) Increase cost and investment efficiency THREE PLATFORMS OF Gas business NAFGOTAZ Supply Enter the heat supply market GROUP Effective and scalable model Increase production Customer base of nearly 30% Improve trading (gas, electricity, services) competency (EU) Increase cost and investment efficiency THREE PLATFORMS OF Gas business NAFGOTAZ Supply Enter the heat supply market Effective and scalable model GROUP Increase production Customer base of nearly 30% Improve trading (gas, electricity, services) competency (EU) Develop low-carbon businesses Increase cost and (hydrogen, biofuels) investment efficiency Zero CO2 emissions by 2040

Low-carbon businesses THREE PLATFORMS OF Gas business NAFGOTAZ Supply Enter the heat supply market Effective and scalable model GROUP Increase production Customer base of nearly 30% Improve trading Develop low-carbon businesses (gas, electricity, services) competency (EU) (hydrogen, biofuels) Zero CO emissions by 2040 Increase cost and 2 investment efficiency

Low-carbon businesses GAS BUSINESS PLATFORM OTTO WATERLANDER Chief Operating Officer of Naftogaz Group

STRATEGY 2025 INCREASING THE BASE NOW 2025

OF EXPLORED RESERVES Proven recoverable reserves IS KEY TO 254 ≈ 250 bcm ATTRACT bcm INVESTORS 46 bcm contingent (2С) 112 bcm Undiscovered reserves prospective (2U) ≈ 500 bcm The resources include contingent, which have been * According to the audit report prepared according to discovered, and prospective, which have not been PRMS methodology 01.01.20 ** Estimated potential discovered. Source: Naftogaz Group $7.3 bn $14.1 bn THE PROGRAM in 2021-2025 in 2026-2030

NEEDS 3.1 3.1 Explored fields 2.9 New fields 2.7 NVESTMENT: 2.3 1.9 Long-term investment 1.6 program, including seismic $20-25 BILLION 1.5 1.3 0.9 prospecting, USD billion OVER 10 YEARS 0.6 0.2 0.9 0.7 0.5 0.8 0.5 1.2 0.4 1.5 0.3 2.0 0.3 2.8 0.2 2.9 0.2 2.7 0.2 2.5 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Note: The evaluation of investment needs is presented for the option of funding E&P programs by the Group’s own means (without partner engagement). Source: Naftogaz Group UKRAINE IS ONE OF THE Gas production decrease in the EU and Potential for increasing Ukraine’s gas reserves EUROPEAN Europe’s key gas producing countries in 2020 by 2025 COUNTRIES compared to 2019: WITH STRONG POTENTIAL FOR PRODUCTION GROWTH - 20 bcm - 9 bcm - 7 bcm - 1 bcm ~600 bcm DEVELOPING TRADING MONTHLY TARIFF PROTECTS UAH 6.86 /m3 CONSUMERS AGAINST SURGES ANNUAL TARIFF 3 IN PRICE 2020 – UAH 4.77 /m TRADING JUL 2020 AUG 2020 SEP 2020 OCT 2020 NOV 2020 DEC 2020 JAN 2021 • Operations with cross-commodity tools • Portfolio optimization • Hedging tool • Customer-oriented wholesale trade • Commodity-oriented wholesale trade GAS VOLUME INJECTED INTO Energy security UGS FACILITIES 30% more gas in UGS facilities compared to 2019 IN 2020 EQUALS 4 bcm of SoLR gas ANNUAL Guaranteed supplies to households CONSUMPTION Strong position in gas negotiations with Largest gas stocks over the past 10 years NAFTOGAZ AS A PARTNER IS EASY TO UNDERSTAND FOR INVESTORS

NAFTOGAZ SIGNED A MEMORANDUM OF COOPERATION WITH OMV PETROM END-USER SUPPLY

PLATFORM MAKSYM RABINOVYCH Head of Retail Supply Division

STRATEGY 2025 Heat Electricity Exploration and FROM REGIONAL GAS production BEFORE SINCE Gas Bio Н2 SUPPLIER 1 August 1 August TO NATIONAL ENERGY 2020 2020 Naftogaz Group as an energy SERVICE PROVIDER Intermediaries service provider to end users

Consumers Consumers Apartment building SMEs Households co-owner associations NEW PLATFORM 2021 2022 2023 Developing gas supply platform Adding new energy products Integrated energy OFFERING and services solutions •Partnerships as a key channel for • Electricity and other services in • Switching from selling products USERS VARIOUS customer engagement and service the product portfolio to selling multi-product and integrated solutions •Attractive tariff plans • Energy efficiency as a component of the product • Financial resilience of the ENERGY •Quality of customer service range business SOLUTIONS • Effective platform with low costs OUR GOAL IS TO DIGITALIZATION • Convenient online services ALWAYS OFFER 1 • Easy switching to a new supplier GOOD PRICES OPTIMIZED COSTS • Trading GAS.UA 2 • Partner chains ENERGY EFFICIENCY 3 PROJECTS • Lower consumption GAS MARKET LIBERALIZATION IN 5.6 6.0 6.3 10.1 ACTION: OVER 600K NEW 8.3 22.5 CLIENTS ACROSS UKRAINE HAVE 7.6 27.3 3.7 3.4 14.2 2.7 CHOSEN NAFTOGAZ AS THEIR Naftogaz Group 12.8 7.4 7.8 4.0 RETAIL SUPPLIER 200.3 received 12k NEW 36.9 4.1 0.3 APPLICATIONS DAILY

17.7 10.8 10.0 181.6 TOP 3 REGIONS by number of new customers: , Dnipropetrovsk and Lviv

Map of new household customers engaged in August 2020 – January 2021, thousands NAFTOGAZ GROUP DOES NOT PLAN TO STOP AND SETS THE AMBITIOUS GOAL OF Number of customers, thousands INCREASING ITS RETAIL MARKET SHARE TO 35% IN 2025 December December February December December December December 2019 2020 2021 2021 2022 2023 2025

by 5 times LOW-CARBON BUSINESSES PLATFORM LANA ZERKAL Head of Low-Carbon Businesses

STRATEGY 2025 GREEN ENERGY: UKRAINE’S ENERGY BASKET: UKRAINE’S ENERGY BASKET: RESPONSIBILITY 2020 2035 FOR OUR HOME 5% 13% 15% 30% 25%

7% 30% 24%

26% 25%

Coal Natural gas Atomic energy Oil products Renewables Coal Natural gas Atomic energy Oil Renewables EU GREEN DEAL EU GREEN DEAL GOAL: NAFTOGAZ GROUP: UKRAINE IS THE EU’s CLIMATE NEWUTRAL EUROPEAN THE COMPANY’S CARBON FULL-FLEDGED PARTNER CONTINENT NEUTRALITY 2050 2040

RENEWABLE ENERGY IS: ENVIRONMENT INVESTMENTS INNOVATION IN COOPERATION WITH THE EU WE’VE STARTED LOOKING DEVELOPING GENERATION AND PRODUCTION PROJECTS FOR NEW OPPORTUNITIES PETER VAN DRIEL Chief Financial Officer of Naftogaz Group

STRATEGY 2025 BALANCE BETWEEN 2 GROWTH AND 1 Gas business RETURN ON Supply INVESTMENTS PROPRIETARY INVESTMENTS 3 PROPRIETARY INVESTMENTS Low-carbon PARTNER ENGAGEMENT PARTNER ENGAGEMENT businesses ENVIRONMENT SOCIAL PARTNERSHIP GOVERNANCE

ENVIRONMENT SOCIAL PARTNERSHIP GOVERNANCE Achieving carbon neutrality Corporate citizenship and №1 in SOE corporate by 2040 supporting the country governance E S G IMPLEMENTATION OF THE STRATEGY Strategic Bond investors Equity investors partner

STABLE INVESTMENT CLIMATE - Judicial system - Support from the government - Clear rules PREREQUISITES: WHAT WE NEED ANDRIY KOBOLYEV CEO, Naftogaz of Ukraine NJSC

STRATEGY 2025 GOVERNMENT’S NAFTOGAZ’S 20/20 PROGRAM: COMMITMENTS ACHIEVEMENTS LESSON WE Issuing licenses and permits (most of Investments in drilling equipment them issued at the end of 2020) COOPERATION WITH THE Stopped production decline at exhausted GOVERNMENT AND SHOULD LEARN Amendments to the Tax Code fields PARLIAMENT AS WELL AS Partnerships with international companies THE COMPANY’S PSA conditions (signed in December which are willing to cooperate even now EXPLORATION EFFORTS 2020) Production on par with international companies helped solve most of the issues by the end of 2020 The Government fully delivered on (at equally exhausted fields) just one of its 19 commitments Production experts with international experience How we Who we are work FOR ITS STRATEGY TO SUCCEED, Corporate culture Organizational Building Eliminating NAFTOGAZ NEEDS structure Processes Digitalization partnerships bureaucracy TRANSFORMATION

Mission and values IMPLEMENTATION CONTINUED MARKET REFORMS will ensure lower prices for Ukrainians O1 and protect the country against Russia’s economic pressure OF THE STRATEGY: O2 DEBT SETTLEMENT ( UAH 80 BN) and further PSO cancellation for heat EXTERNAL producers to stop the accumulation of debts PREREQUISITES O3 BALANCED DIVIDEND POLICY to increase production

O4 CONTINUED CORPORATE GOVERNMENT REFORM based on OECD guidelines

O5 CONSISTENT REGULATORY POLICY which would be clear to investors UKRAINIAN -177 000 CHOICE ON THE jobs lost GAS MARKET -UAH 110 bn decrease in revenues to state budgets from 2021 at all levels SCENARIO 1 to 2030 no investments in new fields -UAH 29 bn decrease in revenues to the Pension Fund -UAH 410 bn GDP decrease KPMG, 2021 UKRAINIAN +290 000 CHOICE ON THE new jobs GAS MARKET +UAH 361 bn increase in revenues to state budgets at all levels from 2021 to 2030 SCENARIO 1 implementation of the development strategy +UAH 36 bn increase in revenues to the pension fund +UAH 438 bn GDP growth

KPMG, 2021 Size of the circle – estimated value of Naftogaz Group’s TIMELINE business Target share of low-carbon businesses in Naftogaz Group’s value

Knowledge • Public company 2030 • Customers/consumers and knowledge are the major sources for value creation • Active transition to sustainable energy • Matching leaders

2025 •IPO •Naftogaz is an platform •Low-carbon business platform created •Developing partnerships is key to success

Assets •E&P is the major platform 2021 •Focus on volumes •Organic growth

Commodities Customers / consumers ENERGY PARTNER OF CHOICE

CONSUMERS EMPLOYEES PARTNERS STATE THE UKRAINIAN CHOOSE CHOOSE CHOOSE CHOOSES PEOPLE RELIABILITY OPPORTUNITIES CAPACITY, DEVELOPMENT PROJECTS CHOOSES AND PRICE AND STABILITY KNOWLEDGE AND AND BUDGET REVENUES ECONOMIC GROWTH TRANSPARENCY AND PROSPERITY THANK YOU

• STRATEGY 2025 FROM PRODUCTION COMPANY TO NATIONAL ENERGY SERVICE PROVIDER STRATEGY 2025

February 19, 2021