Gaining Momentum Gazprom Investor Day
February 2010
1 Moscow, London, New York Disclaimer
This presentation has been prepared by OJSC 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. No reliance may be placed for any purposes whatsoever on the information contained in this presentation, or any other material discussed at any presentation or on its completeness, accuracy or fairness. The information in this presentation should not be treated as giving 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. 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.
2 Today’s Speakers
Vlada Rusakova Growth Strategy Member of Gazprom Management Committee Head of Strategic Development Department
Alexander Medvedev Strong and Growing Customer Base Deputy Chairman of Gazprom Management Committee Director General of Gazprom Export
Andrey Kruglov Solid Financial Position Deputy Chairman of Gazprom Management Committee Head of the Department for Finance and Economics
Vadim Yakovlev Gazprom Neft: Oil Business Development Deputy Chairman of the Management Board and CFO of Gazprom Neft
Denis Fedorov Gazprom Energoholding: Power Generation Head of Gazprom Directorate for Development of Power Generation Sector and Business Development Power Generation Marketing, General Director of Gazprom Energoholding
3 Part 1. Growth Strategy
Vlada Rusakova
Member of Gazprom Management Committee
Head of Strategic Development Department
4 New Energy Strategy of Russia 2030
Primary Energy Resources Energy Resources Export GDP Energy Intensity (1) Mtoe Mtoe 3,4% 2 000 800 4,4% 1 000 96.6% 600 50% 95.6% 32% 43% 85% DECREASE 43% 0 400 53.2% 61.3% 1 000 46.8% 200 68% 57% 38.7% 2008 2030 2 000 0 2008 2030 2008 2030 Production Import Consumption Export Oil, oil products, coal and other Gas
Total Final Consumption
Oil Other Other Oil Coal Coal 10% 14% 22% 18% 19% GAS : 19% INCREASE IN VOLUME, 53% SHARE REDUCTION 45%
Gas Gas 2008 Source: Energy Strategy of Russia 2030 2030 1. Compared to 2005 levels
5 Growth Strategy Indicators for Russian Gas Industry Development by 2030
885 940 bcm Production Transportation Export in 2030 100% 100% 100%
50% 39% 50% 50% 23% 20% 2% 3% 0% 0% 0% 2008 2030 2008 2030 2008 2030 Share of new regions Share of new pipelines Share of Asia
100% 100% 100%
Production growth Production 50% 50% 50% 27% 26% 33 42 % 17% 15% 4% 664 bcm 0% 0% 0% 2008 2030 2008 2030 2008 2030 in 2008 Share of independent producers Share of reconstructed length Share of LNG Source: Energy Strategy of Russia 2030
6 Growth Strategy General Plan of Russian Gas Industry Development 2030
Key highlights: Identification of main drivers of gas industry development (production, transportation, refining volumes; investment forecast for reconstruction and new facilities) Identification of key factors that will ensure effective development of the gas industry Risk assessment and mitigation through administrative decisions Recommendations to the State on how best to support the development of the gas industry
General plan specifies the most effective way for gas industry development
7 Growth Strategy Gas Demand Outlook
Russia 600 bcm
USA Europe and FSU Countries 400
1 000 1 000 bcm bcm 200 800 800 600 600 0 400 400 2008 2010 2015 2020 200 200 0 0 North East Asia
2008 2010 2015 2020 2008 2010 2015 2020600 bcm
400
200
0 2008 2010 2015 2020
Alternative Forecast
Source: Gazprom, CERA, IEA, Cedigaz, EC, IEEJ, MOCIE, EIA
8 Growth Strategy Gazprom’s Supply Volumes to Target Markets
Europe and other countries (1) FSU countries (1) Russia
600 bcm 600 bcm 400 bcm 500 560
411 402 400 400 320 345
200
200 160 200 140 90 100 85 55
0 0 0 2008 2009E 2030E 2008 2009E 2030E 2008 2009E 2030E
Possible growth of supply due to gas demand increase LNG New contracts/ volumes to Asia Pacific Region,. pipelineincl gas Ukraine Other FSU Baltic States Gazprom Independent Gas Producers Contracted volumes to Europe
1. Net export
9 Growth Strategy Gas Production Scenarios
bcm bcm
700 700
600 650
500 600 550 400 500 300 450 200 400
100 350
0 2008 2009E 2010E 2015E 2020E 2030E 2008 2009E … 2030E