Novatek Joint Stock Co (NVTK:LN)

Energy/Integrated Oil and Gas Price: 256.40 USD Report Date: September 29, 2021 Business Description and Key Statistics

Novatek is an independent gas producer and natural gas producer Current YTY % Chg in Russia. Co. is engaged in the exploration, production, and processing of natural gas and liquid hydrocarbons. Co.'s upstream Revenue LFY (M) 9,516 -31.4 activities are concentrated in the Yamal-Nenets region, which is a EPS Diluted LFY 0.30 -93.0 natural gas producing area and accounts for a significant part of Russia's natural gas production. Co.'s two core fields are located in Market Value (M) 769,920 the regions of Yamal-Nenets Autonomous Region and on the Krasnoyarsk Territory. As of Dec. 31, 2019, Co. also have SEC Shares Outstanding LFY (000) 3,002,806 proved reserves aggregated 16,265 million boe, including 2,234 Book Value Per Share 7.21 billion cubic meters (bcm) of natural gas and 193 million tons of liquid hydrocarbons. EBITDA Margin % 21.40 Net Margin % 10.1 Website: www.novatek.ru Long-Term Debt / Capital % 9.3 ICB Industry: Energy Dividends and Yield TTM 1.49 - 0.58% ICB Subsector: Integrated Oil and Gas Payout Ratio TTM % 100.0 Address: Ulitsa Pobedy 22a Tarko-Sale 60-Day Average Volume (000) 95 RUS 52-Week High & Low 272.80 - 120.50 Employees: 15,445 Price / 52-Week High & Low 0.94 - 2.13

Price, Moving Averages & Volume

280.4 280.4 Novatek Joint Stock Co is currently trading at 256.40 which is 6.7% above its 50 day 259.5 259.5 moving average price of 240.32 and 25.6% above its 238.5 238.5 200 day moving average price of 204.12.

217.6 217.6 NVTK:LN is currently 6.0% below its 52-week high price of 272.80 and is 112.8% above 196.7 196.7 its 52-week low price of 120.50. Over the past 52- 175.7 175.7 weeks, NVTK:LN is up 90.9% while on a calendar year-to- date basis it is up 56.9%. 154.8 154.8 The Relative Strength Index (RSI) indicator for NVTK:LN is 133.8 133.8 currently 54.92. An RSI value of 70 and above is considered 112.9 112.9 overbought and 30 and below 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21 oversold. Volume (000) 689 689

517 517

345 345

172 172 Mean (94.59)

0 0 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21

Price Price (50-Day Simple Moving Average) Price (200-Day Simple Moving Average)

Energy/Integrated Oil and Gas Price: 256.40 USD Report Date: September 29, 2021 Price Performance, Technical Indicators & Risk Metrics

Difference Price Performance % Change vs FTSE 350 Technical Indicators 1-Day % 0.75 -0.20 50-Day Average Price 240.32 1-Week % -1.88 -3.00 Price / 50-Day Average 1.07 4-Week % 4.06 4.92 200-Day Average Price 204.12 52-Week % 90.92 67.97 Price / 200-Day Average 1.26 RSI - Relative Strength Index 54.92 Quarter-to-Date % 16.92 16.44

Year-to-Date % 56.92 46.37 Risk Metrics Last Month % 6.47 4.55 Price Volatility 6.04 Last Quarter % 11.04 6.37 Sharpe Ratio 0.19 Last Calendar Year % -19.51 -6.52 Sortino Ratio 0.36

5-Year Price Performance vs. FTSE 350

Novatek Joint Stock Co Current: 2.30 CAGR: 18.2% Over the past five years, FTSE 350 Index Current: 1.20 CAGR: 3.8% Novatek Joint Stock Co's stock price is up 130.0% which is 2.4 2.4 109.7% above the FTSE 350 Index performance of 20.2% NVTK:LN over the same period. 2.3 2.3 Novatek Joint Stock Co's cumulative annualized growth 2.1 2.1 rate (CAGR) over the five year period has been 18.2% while that of the FTSE 350 Index 2.0 2.0 has been 3.8%.

Over the past year, Novatek 1.9 1.9 Joint Stock Co's stock price performance of 90.9% has 1.7 1.7 outperformed that of the FTSE 350 Index by 68.0%. On a year-to-date basis, Novatek 1.6 1.6 Joint Stock Co's stock price performance of 56.9% has 1.5 1.5 outperformed the FTSE 350 Index by 46.4%.

1.3 1.3 Over the past week, Novatek Joint Stock Co's stock price performance of -1.9% has 1.2 ^NMX:LN 1.2 underperformed that of the FTSE 350 Index by 3.0%. 1.1 1.1

0.9 0.9

0.8 0.8 2017 2018 2019 2020 2021 2022

Energy/Integrated Oil and Gas Price: 256.40 USD Report Date: September 29, 2021 Growth and Profitability Metrics

5-Year 10-Year Historical Growth 3-Year 5-Year 10-Year Profitability Current Average Average Revenues % -1.9 8.1 9.5 Gross Margin % 67.0 67.2 77.5 Revenues Per Share % -1.8 8.2 9.6 EBITDA Margin % 21.4 29.8 35.9 EBITDA % -16.0 -1.2 1.1 Pre-Tax Margin % 38.4 50.0 45.9 EPS Diluted % -28.6 0.0 -3.1 Net Margin % 10.1 44.2 38.2 Free Cash Flow % -100.0 -100.0 -100.0 Return on Equity % 4.0 40.5 35.2 Cash from Operations % -9.7 5.0 4.6 Return on Capital % 3.6 32.3 26.7 Book Value % 18.4 30.4 16.3 Return on Assets % 3.2 27.7 22.4

Revenue (M) Novatek Joint Stock Co's cumulative annualized revenue Current: 9515.64 Median: 10087.30 High: 13863.27 Low: 8777.61 CAGR: 2.0% growth rate over the charted 14,880.4 14,880.4 13,863.3 period is 2.0%. This compares to cumulatative annualized 12,761.4 11,934.2 12,761.4 growth of -1.9% over the past 3 years. 10,642.4 10,087.3 10,642.4 9,515.6 8,777.6 8,523.3 8,523.3 2017 2018 2019 2020 2021 Novatek Joint Stock Co's EPS Diluted cumulative annualized EPS Current: 0.30 Median: 0.90 High: 4.62 Low: 0.30 CAGR: -31.8% growth rate over the charted 5.48 5.48 period is -31.8%. This 4.62 compares to cumulatative 3.68 3.68 annualized growth of -28.6% over the past 3 years.

1.88 1.39 1.88 0.90 0.78 0.30 0.08 0.08 2016 2017 2018 2019 2020 2021

Net Profit Margin % Novatek Joint Stock Co's net profit margin of 10.1% is Current: 10.12 Median: 39.48 High: 99.98 Low: 10.12 CAGR: -32.3% 34.2% below the period's 104.5 104.5 mean net margin of 44.3%. During the charted period, the 71.5 71.5 observed net profit margin Mean (44.33) high and low were 100.0% and 38.6 38.6 10.1% respectively.

5.6 5.6 2016 2017 2018 2019 2020 2021 Novatek Joint Stock Co's Return on Equity % return on equity of 4.0% is Current: 4.00 Median: 33.70 High: 88.40 Low: 4.00 CAGR: -50.0% 35.2% below the period's 92.6 92.6 mean return on equity of 39.2%. During the charted 61.7 61.7 period, the observed ROE Mean (39.22) high and low were 88.4% and 4.0% respectively. 30.7 30.7

-0.2 -0.2 2016 2017 2018 2019 2020 2021

Energy/Integrated Oil and Gas Price: 256.40 USD Report Date: September 29, 2021 Valuation Metrics

5-Year 10-Year 5-Year 10-Year Current Median Median Current Median Median

Price / EPS TTM 99.9 99.0 99.0 Earnings Yield % 0.16 0.93 0.78

Price / Sales 49.9 43.1 44.4 Free Cash Flow Yield % 0.00 0.43 0.39

Price / Operating Cash Flow 99.9 98.0 99.9 Dividend Yield % 0.58 1.92 1.90

Price / Book Value 35.6 31.5 38.0 Enterprise Value / EBITDA 50.0 50.0 50.0

Price / EPS TTM Novatek Joint Stock Co is trading at 99.90 times its EPS Current: 99.90 Median: 99.90 High: 99.90 Low: 20.78 CAGR: 0.2% generated during the latest Median (99.90) 103.9 103.9 fiscal year. This multiple is equal to the historically 74.8 74.8 observed median of 99.90, while high and low observations have been 99.90 45.8 45.8 and 20.78.

16.8 16.8 2016 2017 2018 2019 2020 2021 Price / Sales Novatek Joint Stock Co is trading at a Price to Sales ratio Current: 49.90 Median: 43.08 High: 49.90 Low: 20.78 CAGR: 4.0% of 49.90 based on sales 51.36 51.36 generated during the latest Median (43.08) fiscal year. This ratio is above 40.68 40.68 the historically observed median ratio of 43.08, while high and low observations 30.00 30.00 have been 49.90 and 20.78.

19.32 19.32 2016 2017 2018 2019 2020 2021 Novatek Joint Stock Co is Price / Book Value trading at a Price to Book ratio Current: 35.55 Median: 31.47 High: 49.90 Low: 10.87 CAGR: -6.6% of 35.55 based on book value 51.9 51.9 at the latest fiscal year end. This ratio is above the historically observed median 37.5 37.5 Median (31.47) of 31.47, while high and low observations have been 49.90 23.2 23.2 and 10.87.

8.9 8.9 2016 2017 2018 2019 2020 2021 Novatek Joint Stock Co has a Free Cash Flow Yield % Free Cash Flow Yield of 0.00% Current: 0.00 Median: 0.43 High: 0.91 Low: 0.00 CAGR: 0.0% based on free cash flow 1.0 1.0 generated during the latest fiscal year. This value is below the historically observed 0.6 0.6 median yield of 0.43%, while Median (0.43) high and low observations 0.3 0.3 have been 0.91 and 0.00.

0.0 0.0 2016 2017 2018 2019 2020 2021

Energy/Integrated Oil and Gas Price: 256.40 USD Report Date: September 29, 2021 Dividends Data

Dividends Per Share TTM 1.49 Payout Ratio TTM % 100.00% Dividend Yield TTM % 0.58%

Rate Ex Date Record Date Payment Date Currency Note 1.486 08-10-2020 09-10-2020 06-11-2020 USD GROSS FINAL RATE 2.558 07-05-2020 08-05-2020 05-06-2020 USD GROSS FINAL RATE 2.236 09-10-2019 10-10-2019 08-11-2019 USD GROSS FINAL RATE 2.569 03-05-2019 06-05-2019 07-06-2019 USD GROSS FINAL RATE 1.405 09-10-2018 10-10-2018 08-11-2018 USD GROSS FINAL RATE 1.298 02-05-2018 03-05-2018 01-06-2018 USD GROSS FINAL RATE 1.189 09-10-2017 10-10-2017 07-11-2017 USD GROSS FINAL RATE 1.235 28-04-2017 02-05-2017 30-05-2017 USD GROSS FINAL RATE 1.084 10-10-2016 11-10-2016 08-11-2016 USD GROSS FINAL RATE 1.055 03-05-2016 04-05-2016 02-06-2016 USD GROSS FINAL RATE 1.063 05-10-2015 06-10-2015 27-10-2015 USD GROSS FINAL RATE

Dividend Growth and Yield

Dividends Per Share TTM Novatek Joint Stock Co's trailing 12-month dividend per Current: 1.49 Median: 2.70 High: 4.81 Low: 1.49 CAGR: -7.7% share is 1.49 and its dividend 4.98 4.98 has grown at a cumulative annualized rate of -7.7% over 4.37 4.37 the charted period. This compares to dividend growth 3.76 3.76 of -69.00% over the past year and cumulative annualized growth of -15.80% over the 3.15 3.15 past 3 years.

2.54 2.54

1.93 1.93

1.32 1.32 2016 2017 2018 2019 2020 2021

Dividend Yield TTM % Novatek Joint Stock Co's current dividend yield is 0.58% Current: 0.58 Median: 1.92 High: 5.03 Low: 0.57 CAGR: -21.2% based on trailing 12 month 5.25 5.25 dividends. The current yield is below the historically observed 4.44 4.44 median of 1.92% and, over the charted time period, the 3.62 3.62 observed high yield has been 5.03% and the observed low yield has been 0.57%. 2.80 2.80

1.98 1.98

1.16 1.16

0.35 0.35 2016 2017 2018 2019 2020 2021

Energy/Integrated Oil and Gas Price: 256.40 USD Report Date: September 29, 2021 ICB Subsector Peer Comparisons

Price Change Year to Date % Price Change Last Calendar Year % 0.0 20.1 40.2 60.4 80.5 -51.8 -38.3 -24.9 -11.4 2.1

PJSC Gazprom 76.7 China Petroleum & Chemical Corp -8.3 Novatek Joint Stock Co 56.9 Novatek Joint Stock Co -19.5 Gazprom Neft PJSC 53.6 Rosneft Oil Co OJSC (Moscow) -21.7 Rosneft Oil Co OJSC (Moscow) 50.4 TotalEnergies SE -28.0 PJSC Lukoil 41.4 PJSC Lukoil -31.2 Peer Group Average 33.4 PJSC Gazprom -32.0 BP PLC 32.8 Peer Group Average -32.0 Royal Dutch Shell Plc 27.2 Gazprom Neft PJSC -36.0 TotalEnergies SE 15.4 Royal Dutch Shell Plc -41.9 Tatneft PJSC 7.0 Surgutneftegas PJSC -42.7 Surgutneftegas PJSC 4.5 Tatneft PJSC -44.8 China Petroleum & Chemical Corp 1.8 BP PLC -46.0 0.0 20.1 40.2 60.4 80.5 -51.8 -38.3 -24.9 -11.4 2.1

Price / EPS TTM Price / Book Value 0.0 26.2 52.4 78.7 104.9 0.0 13.1 26.2 39.3 52.3

Novatek Joint Stock Co 99.9 China Petroleum & Chemical Corp 49.9 PJSC Gazprom 99.9 Novatek Joint Stock Co 35.6 PJSC Lukoil 99.9 Peer Group Average 9.9 Gazprom Neft PJSC 99.9 Tatneft PJSC 8.3 China Petroleum & Chemical Corp 99.9 Gazprom Neft PJSC 5.6 Tatneft PJSC 72.8 Surgutneftegas PJSC 2.5 Peer Group Average 62.5 Rosneft Oil Co OJSC (Moscow) 1.4 Rosneft Oil Co OJSC (Moscow) 42.4 PJSC Gazprom 1.2 Royal Dutch Shell Plc 32.2 BP PLC 1.2 TotalEnergies SE 20.3 TotalEnergies SE 1.2 Surgutneftegas PJSC 20.1 PJSC Lukoil 1.1 BP PLC 0.2 Royal Dutch Shell Plc 1.1 0.0 26.2 52.4 78.7 104.9 0.0 13.1 26.2 39.3 52.3

EPS 5-Year Growth Rate % Revenue 5-Year Growth Rate % -205.0 110.6 426.1 741.7 1,057.3 -5.6 -2.0 1.6 5.2 8.8

Royal Dutch Shell Plc 999.9 Novatek Joint Stock Co 8.1 Gazprom Neft PJSC 6.7 BP PLC 999.9 Tatneft PJSC 5.7 Peer Group Average 215.7 Rosneft Oil Co OJSC (Moscow) 2.0 China Petroleum & Chemical Corp 17.6 Peer Group Average 1.8 TotalEnergies SE 13.0 PJSC Gazprom 1.7 Novatek Joint Stock Co 0.0 TotalEnergies SE 1.5 Surgutneftegas PJSC 1.1 Surgutneftegas PJSC -3.0 PJSC Lukoil -0.6 Rosneft Oil Co OJSC (Moscow) -14.6 Royal Dutch Shell Plc -1.4 PJSC Gazprom -28.5 BP PLC -1.5 PJSC Lukoil -43.3 China Petroleum & Chemical Corp -3.8 -205.0 110.6 426.1 741.7 1,057.3 -5.6 -2.0 1.6 5.2 8.8

Energy/Integrated Oil and Gas Price: 256.40 USD Report Date: September 29, 2021 Abbreviations: CAGR - Cumulative annual growth rate. EBIT - Earnings before interest and taxes. EBITDA - Earnings before interest, taxes, depreciation & amortization. LFY - Last fiscal year M - Million LON - London Stock Exchange

Definitions: Market Value - Weekly Price times latest Shares Outstanding times any applicable ADR factor. Revenue - Sum of the last four quarters of Revenues. Revenue Per Share - Sum of the last four quarters of Total Revenue divided by Weighted Average Shares Outstanding. Operating EPS LFY - EPS excluding non-recurring, non-operating items, fiscal year aligned TTM value. 60-Day Average Volume (000) - The average of the last 60 daily volume values in thousands of shares. Price 52-Week High - The high closing price from the last 52 weeks of daily closing prices. Price 52-Week Low - The low closing price from the last 52 weeks of daily closing prices. Price / 52-Week High - Latest price divided by the high price from the past 52 weeks of daily closing prices. Price / 52-Week Low - Latest price divided by the low price from the past 52 weeks of daily closing prices. 50-Day Average Price - Mean of last 50 daily closing prices. 200-Day Average Price - Mean of last 200 daily closing prices. Price / 50-Day Average Price - Latest closing price divided by mean of last 50 daily closing prices, as a percentage. Price / 200-Day Average Price - Latest closing price divided by mean of last 200 daily closing prices, as a percentage. Relative Strength Index - Relative Strength Index or RSI measures the magnitude of gains over a given time period against the magnitude of losses over that period. The equation is RSI = 100 - 100 / (1 + RS) where RS = (total gains / n) / (total losses / n) and n = number of RSI periods. In this item, 14 days is used and one year of daily prices are considered. A value of 30 or below may imply oversold and 70 or above may imply overbought. Price Volatility - The standard deviation of the last 20 days of daily closing prices. Sharpe Ratio - The 5 year average of the excess monthly return over the risk - free rate(1 - month T - bill) over the 5 year standard deviation of the same series. Sortino Ratio - The same calculation as the Sharpe Ratio but with positive excess returns set to zero for the standard deviation denominator, so only negative volatility weighs in. Dividends Per Share TTM - Sum of the last four quarters of Dividends Per Share. Payout Ratio - Dividends Per Share TTM divided by Operating EPS TTM. Dividend Yield TTM % - Sum of the last four quarter of Dividends Per Share divided by Weekly Price. EBITDA - Sum of the last four quarters of EBITDA (Operating Income + Depreciation & Amortization). Free Cash Flow - Sum of the last four quarters Net Cash from Operations minus Capital Expenditures (Purchase of Property, Plant & Equipment), from the Cash Flow Statement. Book Value Per Share - Total Common Equity last quarter divided by Shares Outstanding last quarter. Gross Margin % - Sum of the last four quarters Gross Profit divided by the sum of the last four quarters Revenues. EBITDA Margin % - Sum of the last four quarters EBITDA divided by the sum of the last four quarters Revenues. Pre-Tax Margin % - Sum of the last four quarters of Earnings Before Taxes divided by sum of the last four quarters Revenues. Net Profit Margin % - Sum of the last four quarters of Operating EPS divided by sum of the last four quarters Revenues Per Share. Return on Equity % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Book Value. Return on Capital % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Total Capital Per Share. Return on Assets % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Total Assets Per Share. Price / EPS TTM - Weekly Price divided by the sum of the last four quarters of Operating EPS (capped at 99.9). Price / Sales - Weekly Price divided by Revenues Per Share TTM. Price / Book Value - Weekly Price divided by Book Value Per Share last quarter. Book Value Per Share is Total Common Equity last quarter divided by Shares Outstanding last quarter (capped at 49.9). Free Cash Flow Yield % - Free Cash Flow Per Share TTM divided by Weekly Price. Enterprise Value - Market Value plus Total Debt last year plus Preferred Equity last year minus Cash & Cash Equivalents last year. Enterprise Value / Sales - Enterprise Value divided by the sum of the last four quarters of Revenue. Enterprise Value / EBITDA - Enterprise Value divided by EBITDA TTM. Enterprise Value / EBIT - Enterprise Value divided by trailing four quarters of Operating Income. Enterprise Value / Free Cash Flow- Enterprise Value divided by the sum of the last four quarters of Free Cash Flow. Russell 1000 Index - The largest 1,000 stocks by market cap, the index comprehensively covers the US large cap universe. EPS 5-Year Growth Rate % is capped at 999.9%. Revenue 5-Year Growth Rate % is capped at 999.9%.

Energy/Integrated Oil and Gas Price: 256.40 USD Report Date: September 29, 2021

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