13.10.2015

October 2015

OJSC Rosneft Investor Presentation

Important Notice

Information herein has been prepared by the Company. The presented conclusions are based on the general information

collected as of the date hereof and can be amended without any additional notice. The Company relies on the information

obtained from the sources which it deems credible; however, it does not guarantee its accuracy or completeness.

These materials contain statements about future events and explanations representing a forecast of such events. Any

assertion in these materials that is not a statement of historical fact is a forward-looking statement that involves known and

unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be

materially different from any future results, performance or achievements expressed or implied by such forward-looking

statements. We assume no obligations to update the forward-looking statements contained herein to reflect actual results,

changes in assumptions or changes in factors affecting such statements.

This presentation does not constitute an offer to sell, or any solicitation of any offer to subscribe for or purchase any

securities. It is understood that nothing in this report / presentation provides grounds for any contract or commitment

whatsoever. The information herein should not for any purpose be deemed complete, accurate or impartial. The information

herein in subject to verification, final formatting and modification. The contents hereof has not been verified by the

Company. Accordingly, we did not and do not give on behalf of the Company, its shareholders, directors, officers or

employees or any other person, any representations or warranties, either explicitly expressed or implied, as to the accuracy,

completeness or objectivity of information or opinions contained in it. None of the directors of the Company, its

shareholders, officers or employees or any other persons accepts any liability for any loss of any kind that may arise from

any use of this presentation or its contents or otherwise arising in connection therewith.

2

1,7

2,4

2,6

2,8

2,9

3,2

4,1

4,2

5,2

13.10.2015

23

28

40

46

49

54

65

79

129

Liquid HC Gas

Note: (1) Rosneft reserves are indicated in accordance with Russian classification for ABC1+C2 as of January 1, 2015; Lukoil reserves are provided in line with the reports of January 1,

2015 and include proved, probable and possible reserves. Data for other companies is taken from the Wood Mackenzie estimates and includes commercial and sub-commercial reserves.

(2) Daily production for 1H2015 (3) Lifting costs for 2014, Rosneft, Lukoil and Petrobras for 1H 2015.

Hydrocarbon reserves1 Hydrocarbon production2 Lifting costs3

bboe mmboed $/boe

3

18

16

15

14

13

13

12

5

2,8

Global Leader in Reserves, Production and Efficiency

Rosneft environment protection spending in 2014 RUB58.7 bln

incl. CAPEX RUB36.9 bln

HSE management in accordance with ISO 14001 requirements and international best

practices

Favourable environment and biological diversity preservation

Ecological risks zero tolerance

Focus on innovation in green technology implementation and environmental performance

improvement

Transparency and accuracy of Company’s Sustainability report

Key priorities:

4

Environment Protection Priorities

48 subsidiaries are certified under the Occupational

Health & Safety Assessment Series (OHSAS 18001);

Certification is expected for another 38 subs by 2020

Last year, the number of violations in industrial safety

registered by Rostekhnadzor more than halved, the

number of accidents was reduced by 30%

The number of complex exercises to prevent

accidents and employees involvement grew by 1.5

times

A long-term program for safety culture improvement

and leadership awareness in industrial health and

safety is being implemented

Health and Safety Priorities

5

Lost time injury frequency

0,338 0,375

0,362 0,272

jan feb mar apr may jun jul aug

2014 2015

HSE expenditures, RUB bln

39

7

20

11

1

47

9

23

14

1

HSE, total Work safety Industrial security

Fire safety Flush, radiation safety

2014 Plan

2015 Plan

-27%

+21%

43%

102%

103%

104%

105%

106%

114%

120%

133%

134%

158%

12,9

8,8

6,6

4,9

4,4

3,6

3,4

1,7

1,1

0,3

0,2

>240% average 10 year reserve replacement ratio

158% organic reserve replacement for last 3 years

Global leader in geological exploration: costs per boe of

new reserves is 16 times lower vs. the average level for

the key competitors

Total reserves: 129 bboe АВС1+С2

АВС1 reserves-to-production ratio – 45 years 100%

Organic reserve replacement cost1 in 2012-2014 Organic reserve replacement ratio in 2012-2014

$/boe

6

Robust Reserve Replacement

Source: Companies data

Note: (1) Calculated as exploration expenses divided by organic reserve growth

Hydrocarbon production growth

7

Efficient Reserve Base Development

F&D costs1 in 2012-2014

Source: Companies data, Rosneft 2015 hydrocarbon production base on 9M2015 results

Note: (1) Calculated as F&D costs, including exploration and development CAPEX, acquisition of assets WO proved reserves, divided by reserve growth (including revision of previous

estimates)

56,7

33,3

32,2

26,0

25,3

25,3

22,5

19,5

12,7

8,3

5,0

$/boe

2010 2015 2020

Gas

Liquid HC

mmboed

~6.0

2.5

5.2

Production doubles every 3 years on average in 1998-2014

Global leader in F&D costs: average spending rate at $5 per boe in 2012-2014 is 5 times lower vs. the

competitors spending level

Hydrocarbon production growth achieved recently mainly by gas segment

Rosneft plans to produce 300 mtoe of hydrocarbons in 2020, targeting growth in both crude oil and gas

segments

Maintaining leadership in development efficiency is on of the key strategic goals

0

3

6

9

Средняя коммерческая скорость

8

Strategic Advantages of In-house Service Development

Drilling rates1

th. m/m-m

Note: (1) Drilling on the key asset – Yuganskneftegas, companies sorted by the drilling volumes

Reducing the dependence on contractors and market

conditions

Efficiency and financial transparency: cost of third-party

contractors is 5-9% higher

Improved mobility and timely relocation if it is required

Reducing the well construction cycle and the risk of

accidents

Drilling footage to grow by 7-10% pa within next 5 years

Target share of in-house services >50%

Expansion of the in-house rig fleet

31 дек 13 31 дек 14 20 сен 15

213

81

218

+2% x2.6

Dec 31, 2013 Dec 31, 2014 Sep 20, 2015

Weighed average drilling rate

In-house service providers

3rd party contractors

13,4

55,0

9,4

36,2

Average flow rate per oil well

Average flow rate per new oil well

Rosneft Russia average

tpd

Drilling Activity Ramp-up and Application of Advanced Technologies

Horizontal wells dynamics1 New oil wells launched

1H2014 1H2015 2015

Directional wells Horizontal wells

31%

20% 20%

38%

21%

29%

40%

20%

30%

Gazprom Neft Lukoil Rosneft

2013 2014 1H2015

806 700

+15%

Horizontal wells share growth to 30% across the entire

portfolio

Flow rates significantly exceed the sector average levels

Horizontal drilling rates increased by 8% in 1H2015 YoY

Yugansk: horizontal wells with multi-stage hydro-fracks

share increased to 12% in 1H2015 (vs. 9% in 1H2014)

Samara: flow rates of new oil wells reached 67.5 tpd in

1H2015 (+70% production of new wells compared to

1H2014)

Average flow rates in 1H20152

Note: (1) CDU TEK data, completed construction wells (2) CDU TEK data, Rosneft average flow rates per new oil well – IFRS data 9

$/bbl

10

Leader in E&P Efficiency

E&P unit OPEX and CAPEX 2013-2014

0

20

40

60

80

opex 2014 capex 2014 opex+capex 2013

High-yield oil and gas production business (gas segment

share <20%)

Total E&P unit OPEX and CAPEX 2 times lower vs.

Russian competitors levels and 4-5 times vs. global

majors upstream costs

Increase of competitive advantages in conditions of high

volatility in the oil market

E&P unit OPEX and CAPEX 1H2015

0

10

20

30

40 opex 1П15 капекс 1П15

$/bbl

7.0

13.2 14.8

31.0 32.9

1H2015 OPEX

1H2015 CAPEX

11

Greenfield Development Pipeline

Greenfield start up pipeline Superb efficiency of greenfields2

110,9

96,2

55,0

157,0

Average flow rate of new wells, tpd

Unit OPEX, RUB/boe

Uvat+VChNG+Vankor

Company E&P total

The Company optimizes the budget with a focus on

new upstream greenfields

Launch of Labaganskoye field in July 2015 with

expected c. 1.4 mmtpa production plateau

Key near-term launching targets – Suzun and East

Messoyakha

Preliminary contracts signed for Russkoe, Kuyumba,

YTF and E.Messoyakha to deliver oil to Transneft

pipeline system (Zapolyarye-Purpe, Kuyumba-

Taishet)

Greenfield production and CAPEX3

0

10

20

30

40

0

100

200

300

2014 2015 2016 2017 2018 2019 2020

mmt RUB bln

Note: (1) Production given 100% share. Rosneft share ~50%, (2) As for the 1H2015, (3) All projects given 100% share

Nau

l

Ta

as

-Yu

rya

h (

2n

d s

t.)

La

ba

ga

n

Su

zu

n

Ru

ss

ko

e

Lo

do

ch

no

e

E. M

es

so

ya

kh

a1

Ku

yu

mb

a1

Yu

TM

Ta

gu

l

0

2

4

6

8

2015 2016-2017 2018-2019 2019-2020

Pro

duction p

late

au,

mm

t

Launch year

CAPEX, RUB bln

Production, mmt

12

Attracting Partners into Russian E&P Projects

Russkoe

Partner: Sinopec (up to

49%)

YuTM

Partner: Sinopec (up to

49%)

Москва

Vankor

Partner: ONGC (15%)

Taas-Yuryah

Partners: BP (20%), add.

sale of up to 29%

Bringing partners to the existing projects

Sale of a 15% stake in Vankor to ONGC. Closing the

Deal depends on the state authorities approval and

the subsidiary reorganisation

Sale of a 20% stake in Taas-Yuryah to BP for $750

mln. Deal closing is scheduled by the end of 2015;

potential sale of up to 29% stake additionally

Attracting partners to the new projects to share risks,

financing and transfer technologies in order to efficiently

develop the fields

Sale of 49% stake in Yurubcheno-Tokhomskoe and

Russkoe fields: a tentative agreement signed with

Sinopec

Tail asset optimization

Regular ranking and prioritizing process; ongoing

work with tail assets

Gas production target of 100 bcm can be achieved by

2020 through existing project portfolio development

Sales gas is almost completely covered by LT supply

contracts

New projects will add 5.2 mmt of gas condensate

output by 2020

Company continues analyzing additional gas

monetization opportunities via LNG projects and field

development in the Russian East

13

Gas Business: Organic Growth – Key to Success

Rosneft share on the domestic market Goal - 100 bcm production by 2020

3%

10%

15% 17%

2012 2013 2014 2015P

Recoverable gas reserves

0

30

60

90

120

2015 2020

KChLU

Kharampur

Rospan

Sibneftegaz

Mature fields, APG, Sakhalin & other

4,6

1,5

0,2 0,2

0,5 0,1

West Siberia

East Siberia

Far East

South of Russia

Offshore

Other

7.2 tcm1

Note: (1) ABC1+C2 reserves as of December 31, 2014

-75 -84 -56

-29 -41

-26

2015 2016 2017

Downstream

Upstream

-35 -34

7

-34 -49

-38

2015 2016 2017

Downstream

Upstream

Indicator 2014 2015 2016 2017

Before After Before After Before After

MET base rate, RUB 493 530 766 559 857 559 919

Export duty (crude) 59% 57% 42% 55% 36% 55% 30%

Export duty (Diesel) 65% 63% 48% 61% 40% 61% 30%

Export duty (Gasoline) 90% 90% 78% 90% 61% 90% 30%

Export duty (Naphta) 90% 90% 85% 90% 71% 90% 55%

Export duty (other light) 66% 66% 48% 66% 40% 66% 30%

Export duty (Dark) 66% 100% 76% 100% 82% 100% 100%

RUB bln RUB bln

Tax maneuver effect under $60 per bbl scenario in

2015-20171

Tax maneuver effect under $50 per bbl scenario in

2015-20172

Note: Compared to tax regime remained in force till January 1, 2015

(1) Assuming RUB50 per $ exchange rate in 2015-2017, (2) Assuming RUB65 per $ exchange rate in 2015-2017 14

Tax Maneuver Effect in New Market Conditions

Rosneft is the largest Russian tax payer. For the 1H2015 the Company paid RUB1,126 bln in the budgets of all levels

(excluding non-budget funds), providing more than 12% of the Russian consolidated budget

Resneft MET per boe of production exceeds the average level for other Russian oils by at least 10% with a lack of

comparable depletion reliefs and lower tax breaks for greenfields

The gap in total taxes (exlc. income tax) per boe of production is higher due to lower than average refining coverage and

higher crude export levels

The transition towards the taxation of the economic result or the introduction of excess profit tax might imply a positive

impact on the Company with above average effective tax rates and with the largest portfolio of greenfields in the Russian

oil industry

Tax Burden

MET per boe of production1 Export duty and taxes other than income tax per boe1

19,0 18,6 16,8 17,0 16,8

15,3

2012 2013 2014

Rosneft

Russian VIOC

$/boe

55,7 54,1 49,3 47,5 45,4

41,0

2012 2013 2014

Rosneft

Russian VIOC

$/boe

Note: (1) Russian vertically integrated oil companies include Lukoil, Gazprom neft, Tatneft and Bashneft. Hydrocarbon production, MET, export duties and taxes other than income tax (in

Russia) based on consolidated financial statements. Taxes other than income tax include excise tax, MET and other. Excluding income tax and insurance premiums to public funds. 15

Refinery Modernization Program

Light product yield and Euro-4/5 share in Russia Refinery modernization progress1

42%

47%

47%

48%

50%

51%

59%

59%

Ryazan

Achinsk

Novokuibyshev

Syzran

Angarsk

Komsomolsk

Tuapse

Kuibyshev

16

Euro-4/5 motor fuels production up 56% for last four quarters. By the end of 2015 all Rosneft refineries will switch to Euro-

5 production

Modernization program financing rate reached 60%

The key equipment is purchased, switching focus to construction and assembling works (mostly RUB)

85 87 88 91

51% 59%

81%

100%

54% 55% 55% 65%

0%

20%

40%

60%

80%

100%

0

16

31

47

63

79

94

2013 2014 2017 Modernization completion

Refinery thoughput in Russia, mmt

Gasoline and diesel Euro-4/5 production share,%

Light product yield,%

Note: (1) Excluding Ruhr Oel

4,3

Europe (Rotterdam, 2014) Rosneft (2014) Rosneft without modernization Rosneft with modernization

Refinery Modernization Effect

17

Modernization effect

+6.1 $/bbl

Note: (1) Refining margin in Europe calculated based on NWE quotes in 2014. Rosneft refining margin in 2014, with/without modernization is based on Brent $70 per bbl and 55 RUB/$

exchange rate assumptions

Average refining margin growth1

4.0

10.1

7.0

Tax maneuver effect

-3.0 $/bbl

Following the modernization at Russian refineries refining depth will increase to 76%, light product yield will reach 65%,

production of motor fuels conforming technical regulations will grow more than 50%

Refinery modernization CAPEX will total c. RUB500 bln (incl. VAT)

Flexible project management enables the Company to defer some and concentrate on top-priority and most attractive

projects during worsening macro environment and period of margins deterioration

18 Noet: (1) Delayed coking or flexicoking

Refinery Modernization Roadmap

Vacuum

block

Isomerizat

ion

Cat

cracking

Hydro-

treatment Reforming Alkylation Coking1 Hydro-

cracking MTBE

Ryazan

Angarsk

Novokuibyshevsk

Syzran

Kuibyshev

Komsomolsk

Tuapse

Achinsk

Effect on product output Refining

depth

Euro-5

gasoline

Light

product

yield

Euro-5

motor fuels

Euro-5

gasoline

Euro-5

gasoline

Refining

depth

Light

product

yield

Euro-5

gasoline

Completion in 2010-2014 Completion in 2017+ Upgrade Completion in 2015-2016

19

Efficient Oil Marketing

Direction Partner Average annual

volumes (mmt)² Duration

China CNPC, Transneft up to 40³ 10-27 years

Novorossiysk/

Primorsk/

Ust-Luga

Glencore, Vitol,

Trafigura 13 5 years

Germany Totsa, RTSA 9 3-5 years

Poland Orlen, Mercuria,

Grupa LOTOS S.A. 11 3-6 years

Belarus Mozyr Refinery,

NAFTAN 9 3 years

Czech Orlen 4 4 years

Domestic market Khabarovsk

Refinery 2 4 years

Domestic market Afipsky Refinery 2 3 years

Crude oil sales channels

Long term crude oil supply contracts1 Prepayments under LT crude oil supply contracts

Note: (1) The list of contracts in force as of October 2015 including duration (2) Volumes for a given year may differ from average volumes (3) The number assumes potential increase of

annual supplies from 7 to 10 mmtpa

Constant focus on optimizing logistics and maximizing

netbacks

Supplies to Asian market up 114% for last 4 years; record

high volumes at 33,4 mmt in 2014

Further supplies increase expected to 49 mmt by 2020

(42% of total crude oil export)

Current portfolio of LT supply contracts offers sustainable

high-margin channels realization

20%

70%

9% 1%

Asia

Europe & other

CIS

Domestic

2008

34%

53%

8% 5%

1H2015

14,8

29,7 28,4

Received 2013 Received 2014 Repaid 1H2015

$ bln

0

250

500

750

1 000

2014 2015P 2016-2017 range

Upstream (brownfields) Upstream (greenfields) Downstream (existing) Downstream (new) Other

0

2

4

6

0

250

500

750

1 000

2013 2014 1H2015 2015P

Upstream Downstream Other HC Production 40,1

29,3

27,9

27,0

24,9

23,4

20,2

9,5

9,2

4,2

Flexible investment program

RUB bln mmboepd

CAPEX and HC production Benchmarking 1H2015 E&P CAPEX1

$/boe

269

533 560

Note: (1) Rosneft, Petrobras, Statoil, Gazprom neft data for 1H2015, Lukoil – for 1Q2015, other companies for 2014, (2) Includes international and offshore projects

CAPEX

Flexible investment program: quick response to

changes in market conditions

Rigid strategic goals: focus on most profitable projects

and meeting license and intergovernmental

commitments

New projects spending rate in 2016-2019: upstream2

c. RUB800 bln, downstream c. RUB430 bln

Sustain leadership in E&P unit CAPEX

RUB bln

533

20

2

Russian oils Rosneft Russian oils Rosneft

204

596

68

233

2013 2014 2015

FY

6M

Free cash flow in 1H2015 was up 45% YoY to

RUB340 bln

Despite worsening market conditions, Rosneft

continues generating FCF of $7 per boe being a

global leader among public O&G companies

Rosneft generates more FCF than all other Russian

oil companies combined

x2

RUB bln

340

RUB bln

135

253 369

703

2H13-1H14 2H14-1H15

Note: (1) Calculated using LTM free cash flow

Robust Free Cash Flow generation

Free Cash Flow

21

Benchmarking free cash flow1

-12

-7

-2

1

3

4

7

FCF 1H 2015: benchmarking (majors)

$/boe

561

136

96

173

231

450

1 129

497

21

Sources Uses

External fund raising Assets disposals Prepayments Operating cash flow Debt reduction

Assets acquisitions JV financing Interest Dividends CAPEX and licenses

572

85 63

1 479

746

470

97

886

Sources Uses

Sources and Uses of Cash

RUB bln

2013 2014 1H2015

22

263

67 30

278

569

69

Sources Uses

Urals price Gross margin

2014 1H2015

Urals price Gross margin

2014 1H2015

$/bbl $/bbl

23

Steady Earning Power

Gross export margin (mature fields1) Gross export margin (greenfields1)

Note: (1) Gross export margin calculated for mature fields using Yugansk – Primorsk tariff, for greenfields using Taas-Yuryakh – Kozmino tariff

57

98

-41%

14 18

-19%

57

40

3

14

98

76

4

18

Crude price

MET, export duty and

transport tariff

Lifting costs

Gross upstream margin

2014 1H2015 $/bbl ∆%

-41%

-47%

-24%

-19%

57

98

-41%

20

35

-44%

9,8 13,0 11,2

4,9

15,4

3Q15-4Q15 2016 2017 2018 2019-2029

45,3 45,0 43,8 43,3 39,9

20,4 20,6 16,7

12,7 14,4

0

10

20

30

40

50

60

70

2Q14 3Q14 4Q14 1Q15 2Q15

Net debt

Cash & cash equivalents and ST financial assets

54.3 Gross debt

65.7 65.6 60.5 56.0 54.3

$ bln1

$ bln1

Note: (1) Calculated at the CBR exchange rate as for the end of the respective period, (2) Excluding future interests accrued after June 30, 2015, (3) Calculated at the CBR average

exchange rate in 2Q2015, (4) Calculated at the CBR exchange rate as for the dates of payments

For 6M 2015 gross debt was down 10.2% ($6.2 bln1)

to $54.3 bln1 (RUB3,013 bln)

For 6M 2015 net debt was down $3.9 bln1 to $39.9

bln1 (RUB2,215 bln).

Cash balance and sort-term financial assets

amounted to $14.4 bln1 (RUB798 bln) as of June 30,

2015

$5.9 bln3 loans repaid in 2Q2015 including $0.6 bln4

repaid in advance (incl. interest accrued).

Financial Strength

Debt and net debt dynamics

Repayment schedule2

24

89%

11%

Foreign currency

RUB

Debt structure by currency

Dividends paid since the IPO totaled ~ RUB500 bln

DPS CAGR since the IPO >25%

Dividend payout ratio at 25% of IFRS net income

starting 2011

RUB87 bln (RUB8.21 per share) – dividends paid in

2015 for FY2014

* Adjusted for RUB167 bln revaluation effect of acquired TNK-BP assets

Note: (1) Calculated using LTM free cash flow

1,3 1,6 1,9 2,3 2,8

7,5 8,1

9.2*

8,2

61,7

111,3 108,7

0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 4,00 4,50 5,00 5,50 6,00 6,50 7,00 7,50 8,00 8,50 9,00 9,50 10,00 10,50 11,00 11,50 12,00 12,50 13,00 13,50 14,00 14,50 15,00 15,50 16,00 16,50 17,00 17,50 18,00 18,50 19,00 19,50 20,00 20,50 21,00 21,50 22,00 22,50 23,00 23,50 24,00 24,50 25,00 25,50 26,00 26,50 27,00 27,50 28,00 28,50 29,00 29,50 30,00 30,50 31,00 31,50 32,00 32,50 33,00 33,50 34,00 34,50 35,00 35,50 36,00 36,50 37,00 37,50 38,00 38,50 39,00 39,50 40,00 40,50 41,00 41,50 42,00 42,50 43,00 43,50 44,00 44,50 45,00 45,50 46,00 46,50 47,00 47,50 48,00 48,50 49,00 49,50 50,00 50,50 51,00 51,50 52,00 52,50 53,00 53,50 54,00 54,50 55,00 55,50 56,00 56,50 57,00 57,50 58,00 58,50 59,00 59,50 60,00 60,50 61,00 61,50 62,00 62,50 63,00 63,50 64,00 64,50 65,00 65,50 66,00 66,50 67,00 67,50 68,00 68,50 69,00 69,50 70,00 70,50 71,00 71,50 72,00 72,50 73,00 73,50 74,00 74,50 75,00 75,50 76,00 76,50 77,00 77,50 78,00 78,50 79,00 79,50 80,00 80,50 81,00 81,50 82,00 82,50 83,00 83,50 84,00 84,50 85,00 85,50 86,00 86,50 87,00 87,50 88,00 88,50 89,00 89,50 90,00 90,50 91,00 91,50 92,00 92,50 93,00 93,50 94,00 94,50 95,00 95,50 96,00 96,50 97,00 97,50 98,00 98,50 99,00 99,50 100,00 100,50 101,00 101,50 102,00 102,50 103,00 103,50 104,00 104,50 105,00 105,50 106,00 106,50 107,00 107,50 108,00 108,50 109,00 109,50 110,00 110,50 111,00 111,50 112,00 112,50 113,00 113,50 114,00 114,50 115,00 115,50 116,00 116,50 117,00 117,50 118,00 118,50 119,00 119,50 120,00

0

2

4

6

8

10

12

14

16

18

20

2007 2008 2009 2010 2011 2012 2013 2014 2015

DPS, RUB Brent, $/bbl

3.7

12.9

19.75%

69.50%

10.75%

Russian

Federation

Free float BP

Dividend payouts and crude oil prices

Rosneft shareholders

25

Sustainable Dividend Payments/ High Yields

29%

15% 11% 10%

5% 3%

-5%

Benchmarking free cash flow yield1

• Reduced OPEX

• Managing SGA and production costs Below inflation

• CAPEX control

• Review current project portfolio to increase profitability Optimization

• Free cash flow

Positive

• Dividend payout

25%

• Gradual decrease in financial leverage

~1.3-1.4x Optimal mix of external and internal financing

Provide consistently high shareholder returns

Generate free cash flow sufficient to fulfill all obligations

Optimization of investment portfolio, supplier relationship management

Control over manageable operating expenses

Financial Priorities

26

Appendix

Note: (1) Adjusted for the difference in the exchange rates applicable at recognition of the revenue from long-term oil supply contracts in 1H2015 in the amount of RUB36 bln,

(2) Excluding the profit from share in YuGP disposal in the amount of RUB45 bln (net) in 1H2014 ($1.3 bln at an average CBR exchange rate in March 2014) and revaluation effect of

acquired TNK-BP assets in the amount of RUB167 bln in 2013 ($4.6 bln at the exchange rate as for the date of the transaction), (3) Adjusted for prepayments under long-term oil supply

contracts and operations with trading securities. 28

Key Financial Indicators

Indicator 1H2015 1H2014 % 2014 2013 %

Adjusted EBITDA1, RUB bln 612 593 3.2% 1,057 947 11.6%

Net income, RUB bln 190 260 (26.9)% 350 555 (36.9)%

Adjusted net income2, RUB bln 190 215 (11.6)% 305 388 (21.4)%

Adjusted operating cash flow3, RUB bln 609 470 29.6% 1,129 764 47.8%

Adjusted free cash flow3, RUB bln 340 233 45.9% 596 204 >100%

Adjusted EBITDA1, $ bln 10.8 16.9 (36.1)% 29.0 29.5 (1.7)%

Net income, $ bln 3.5 7.2 (51.4)% 9.3 17.5 (46.9)%

Adjusted net income2, $ bln 3.5 5.9 (40.7)% 8.0 12.9 (38.0)%

Adjusted operating cash flow3, $ bln 11.4 13.5 (15.6)% 29.6 23.9 23.8%

Adjusted free cash flow3, $ bln 6.7 6.7 − 15.8 6.4 >100%

Urals,

th. RUB/bbl 3.29 3.75 (12.3)% 3.75 3.43 9.3%

Countries of operation

Canada

Gulf of Mexico

Venezuela

Russia Ukraine

Belarus

Germany

Italy

China

Brazil

Vietnam

Norway Монголия

Turkmenistan

UAE

Algeria

Upstream assets

Refineries

Upstream and downstream projects in 20 countries1

856 licenses2 for hydrocarbons production in Russia and abroad

Largest subsoil user in Russia: resources of 309 bboe3

11 refineries in Russia and stakes in 7 refineries abroad

A wide network of retail sites: 2,706 retail sites4

Note: (1) Including Abkhasia (2) As of August 2015 (3) DeGolyer & MacNaughton as of Dec 31, 2014 and Company’s estimation of Vostochno-Sibirsky 1, Pritaymirsky, Amur-Limansky

license areas (4) retail sites as of June 30, 2015 including companies and shares in foreign retail sites

Cuba

India Egypt

Indonesia

Geography of Operations

29