4th Quarter and

2013 Year End Results

2013 Results

Maria das Graças Silva Foster

CEO

Conference Call/Webcast

February 26th, 2014

2 2

FORWARD-LOOKING STATEMENTS:

DISCLAIMER

The presentation may contain forward-looking statements about future events within the

meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of

the Securities Exchange Act of 1934, as amended, that are not based on historical facts

and are not assurances of future results. Such forward-looking statements merely reflect

the Company’s current views and estimates of future economic circumstances, industry

conditions, company performance and financial results. Such terms as "anticipate",

"believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with

similar or analogous expressions, are used to identify such forward-looking statements.

Readers are cautioned that these statements are only projections and may differ

materially from actual future results or events. Readers are referred to the documents

filed by the Company with the SEC, specifically the Company’s most recent Annual

Report on Form 20-F, which identify important risk factors that could cause actual results

to differ from those contained in the forward-looking statements, including, among other

things, risks relating to general economic and business conditions, including crude oil and

other commodity prices, refining margins and prevailing exchange rates, uncertainties

inherent in making estimates of our oil and gas reserves including recently discovered oil

and gas reserves, international and Brazilian political, economic and social

developments, receipt of governmental approvals and licenses and our ability to obtain

financing.

We undertake no obligation to publicly update or revise any forward-looking

statements, whether as a result of new information or future events or for any

other reason. Figures for 2014 on are estimates or targets.

All forward-looking statements are expressly qualified in their entirety by this

cautionary statement, and you should not place reliance on any forward-looking

statement contained in this presentation.

NON-SEC COMPLIANT OIL AND GAS RESERVES:

CAUTIONARY STATEMENT FOR US INVESTORS

We present certain data in this presentation, such as oil and gas resources,

that we are not permitted to present in documents filed with the United States

Securities and Exchange Commission (SEC) under new Subpart 1200 to

Regulation S-K because such terms do not qualify as proved, probable or

possible reserves under Rule 4-10(a) of Regulation S-X.

DISCLAIMER

4th Quarter and

2013 Year End Results

4 4

Main Discoveries in Brazil 2013

RRR Brazil: 131% (above 100% for the 22 years in a row)

Reserves/Production = 20 years

Offshore wells drilled: Post-salt (14) + Pre-salt (17)

R$ 17.3 billion invested in exploration in 2013

Proven Reserves totaled 16.6 Bi boe. RRR* in Brazil above 100% for 22 years in a row. Highlights for new exploratory frontiers - Sergipe-Alagoas and Potiguar.

Espírito Santo

Post-salt

Arjuna

Campos Basin

Post-salt

Mandarim

Santos Basin

Pre-salt

Sul de Tupi / Florim / Sagitário

Iara Extensão 4 / Entorno de Iara

Iguaçu Mirim / Franco Leste

Iara Alto Ângulo / Jupiter Bracuhy

Potiguar

Post-salt

Pitú

Sergipe - Alagoas

Post-salt

Farfan 1 / Muriú 1 / Moita Bonita 1

Highlights in Brazil – 2013

Exploratory Activity

16.6 Billion boe

Proven Reserves 2013

4%International

96%

2013

Brazil Oil + NGL

Natural Gas

2013

85%

15%

59%64%

75%

2011 2012 2013

Pre-salt: 100%

Success Ratio in Brazil

*RRR: Reserves Replacement Ratio

5 5

Oil and NGL production in Brazil reached 1,931 kpbd in 2013, down by 2.5% from 2012.

Natural decline during the last 12 months below expected range of 10-11%.

1,980

-2.5%

2012

1,931

2013

Petrobras Oil and NGL Production in Brazil in 2013: 1,931 kbpd

Main factors that impacted production in 2013:

P-63/Papa-Terra: changes in the subsea layout, postponing 1st oil (Jul/13 to Nov/13).

Cid. de São Paulo/Sapinhoá and Cid. de Paraty/Lula NE: unavailability of the monobuoys (China), as well as difficulties during

installation, delaying the ramp-up of the systems (BSR1 Jul/13 to Feb/14).

P-55/Roncador Module III: delay in system delivery, postponement of 1st oil (Sep/13 to Dec/13).

P-58/Parque das Baleias: delay in system delivery, postponement of 1st oil (Nov/13 to Mar/14).

EWT-Franco: cancelled due to delay in receiving authorization from ANP (FPSO Dynamic Producer).

Limited availability of PLSVs (Pipe-Laying Support Vessels) impacted the pace of interconnection of wells, due to the delayed

decision of contracting abroad (should have been contracted by the end of 2011, but were contracted from Apr/2013).

1.961

Mar-12

1.993

Feb-12

2.098

Jan-12

2.110

1.850

50

Dec-13

1.964

Nov-13

1.957

Oct-13

1.960

Sep-13

1.979

Aug-13

1.908

Jul-13

1.888

Jun-13

2.150

May-13

1.892

Apr-13

1.900

1.950

2.050

1.924

Mar-13

1.846

Feb-13

1.920

Jan-13

1.965

Dec-12

2.032

Nov-12

1.968

2.100

1.940

Sep-12

1.843

Aug-12

1.928

Jul-12

1.940

2.200

1.979

2.250

2.000

2.300

Jun-12

1.960

May-12

1.989

Apr-12 Oct-12

Thousand bpd 2013: 1,931 kbpd 2012: 1,980 kbpd

1Q12 Avg. 2,066

2Q12 Avg. 1,970

3Q12 Avg. 1,904

4Q12 Avg. 1,980

1Q13 Avg. 1,910

2Q13 Avg. 1,931

3Q13 Avg. 1,924

4Q13 Avg. 1,960

6 6

Oil products sales increased by 4% in 2013. Higher increase in production (6%), especially diesel (+8.6%) and gasoline (+12.1%) reduced oil

products import needs.

Sales (2,383 kbpd) and Oil Products Output (2,124 kbpd) in Brazil

Oil Products Sales in Brazil Oil Products Output

937 984

106106

9884

590 LPG

Jet Fuel

Naphtha

Fuel Oil

2,383

2013

Others

+4%

Gasoline

Diesel

231 171

203

2012

2,285

570

224 165

199

Thousand bbl/d

+3.5%

+5.0% 782 850

13790

106

9693

2013

Others 196

Naphtha

LPG

Fuel Oil

2,124

438

238

143

1,997

491

255

2012

206

Gasoline

Diesel

Jet Fuel

+6%

Better performance due to the start-up of new quality and conversion units since

2012, optimization of refining processes and elimination of logistical bottlenecks.

Utilization of refineries reached 97%, higher than 94% in 2012, with a 82% share

of domestic crude oil processed.

+12.1%

+8.6%

Thousand bbl/d

Gasoline (+3.5%): increase in automotive fleet, competitive price relative to ethanol

and increase of the anhydrous ethanol content in Type C gasoline .

Diesel (+5.0%): increase in retail activities, higher thermal consumption, higher grain

harvest and an increase in diesel light vehicle fleet.

Fuel Oil (+16.7%): increased consumption at thermoelectric plants for electricity

generation and higher demand from suppliers of natural gas to thermal power plants.

7 7

Average Realization Price Brazil* x Average Realization Price US Gulf**

*Considers Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil

** Considers Brazilian market volumes for the above mentioned products.

In 2013 we had 3 price increases in diesel and 2 in gasoline, totaling 20% and 11% increases respectively.

The Real devaluation contributed significantly to the non-convergence of prices throughout the year.

Oil Products Price - Brazil vs International

Dec

/13

Nov

/13

Oct

/13

Sep

/13

Aug

/13

Jul/1

3

Jun/

13

May

/13

Apr

/13

Mar

/13

Feb

/13

Jan/

13

Dec

/12

Nov

/12

Oct

/12

Sep

/12

Aug

/12

Jul/1

2

Jun/

12

May

/12

Apr

/12

Mar

/12

Feb

/12

Jan/

12

Pri

ces

(R$/

bb

l)

2012 2013

Average Sales Price USGC

Jun 25th

Adjustments

July 16th Average Sales Price Brazil Adjustments

Jan 30th Mar 6th

Nov 30th

Adjustments

Losses

Gasoline Imports Diesel Imports

Imp

orted

Vo

lum

es (kbp

d)

8 8

million m³/day

Domestic

Bolivia

LNG

SUPPLY DEMAND

40,2

37,0

11,7

39,3

Higher thermoelectric demand (+52%) due to the lower rainfall in the period, met mainly by LNG imports and natural gas from Bolivia.

+15%

85.9

2013

14.5

30.5

40.8

2012

74.9

8.4

27.0

39.5 39.3

23.0

2013 2012

12.1

34.9

11.9

74.5

85.4

38.6

+15%

+52%

2013 x 2012

Higher thermoelectric demand due to lower rainfall.

Thermoelectric generation using natural gas was 6 GW/average in 2013, 58% above the 3.8 GW/average in 2012.

In 2013 and 2012, we met 100% of ONS’s demands (National Operator of the Electric System).

+13%

+73%

Natural Gas Supply and Demand Higher demand for Natural Gas due to increase in thermoelectric demand

Non-thermoelectric

Thermoelectric

Fertilizers*

* Other internal uses in Petrobras

9 9

PROCOP 2013 Operating Costs Optimization Program

PRODESIN 2013 Divestment Program

PROEF 2013 Program to Increase Operational Efficiency

Optimization of operational activities

generated greater productivity levels and

reduced unit costs above expectations

Gain of +63 kbpd in production, with +21

kbpd in UO-BC and +42 kbpd in UO-RIO,

due to the higher level of operational

efficiency.

UO-BC: +7.5 p.p.

UO-RIO: +2.5 p.p.

+68%

2013 Real

6.6

2013 Target

3.9

+115%

2013

7.3

2012

3.4

+2,5 p.p.

With

PROEF

92.4

Without

PROEF

89.8

Results of Structuring Programs in 2013 PROCOP, PRODESIN and PROEF

Actual Transactions: US$ 7.3 billion

Cash contribution: R$ 8.5 billion

Avoided Costs: R$ 6.6 billion

Operational Efficiency (%)

+7.5 p.p.

With

PROEF

75.4

Without

PROEF

67.9

Assets

Financial

Restructuring*

2013*

8.5

8.2

0.3

2012*

6.4

0.6 5.8

+34%

* Petrobras and BR financial assets.

Operational Effriciency (%)

The gains exceeded targets and were obtained

through energy integration, workforce productivity,

maritime transportation and inventories.

R$ billion

R$ billion

US$ billion

Conclusion of 21 divestments since Oct/2012,

totalling US$ 10.7 billion, with US$ 3.4 billion in

2012 and US$ 7.3 billion in 2013.

10 10

Investments totaled R$ 104.4 billion, 24% above 2012, including Libra’s signing fee (R$ 6 billion).

R$

Bill

ion

Annual Investment

+24%

2013

104.4

2012

84.1

29%

6% 5%

57% Gas & Energy

Corporate

Biofuels

Distribution

International

Downstream

E&P

1.1% 1.1%

0.3%

Investment by Segment

Physical and financial monitoring of 158 individualized projects, which represent 73% of investments (S-Curves):

average physical realization of 91% and financial realization of 101%.

2013 Investments: R$ 104.4 Billion

11 11

2013 Results Increase of 6% in Operating Income and 11% in Net Income

Operating Income increase in 2013 due to, mainly, readjustments in the price of oil products and asset sales (PRODESIN). The extension of hedge

accounting since May/2013 contributed to an increase of 11% in the year’s net income.

23.6 +11%

+6% 34.4

21.2

32.4

R$ billion

2012 2013

2013 x 2012 Results Highlights

Higher oil products prices (mainly diesel and gasoline since 2H12 and throughout

2013);

Higher throughput in our refineries, reducing imported oil products share in the

sales mix;

Asset sales gains of PRODESIN – Divestment Program

Lower dry and sub-commercial wells expenses;

Extension of hedge accounting since May/2013;

Lower crude oil exports due to lower production levels, as well as higher domestic

crude oil share in throughput;

Persistence of domestic oil products price differentials relative to international

prices due to the currency devaluation;

Lower finance income due to the sales of government bonds (NTN-B) and

readjustment of judicial deposits in 2012; and

Higher finance expense due to higher debt.

Operating Income

Net Income

12 12

2013 Results EBITDA of R$ 63.0 Billion in 2013, 18% higher than 2012

In 2013, EBITDA was 18% higher than that of 2012 due to, mainly, adjustments of oil products price, asset sales of PRODESIN and lower dry and

sub-commercial wells expenses.

63.0

21.2

34.4

53.4 +18%

+11% 23.6

+6% 32.4

2012 2013

2013 x 2012 EBITDA

Higher oil products prices (mainly diesel and gasoline since 2H12 and

throughout 2013);

Higher throughput in our refineries, reducing imported oil products share in the

sales mix;

Asset sales gains of PRODESIN – Program of Divestitures

Lower dry and sub-commercial wells expenses;

Lower crude oil exports due to lower production levels, as well as higher

domestic crude oil share in throughput;

Persistence of domestic oil products price differentials relative to international

prices due to the currency devaluation

R$ billion

Operating Income

Net Income

EBITDA

13 13

2013 Net Income: Without Structuring Programs Structuring Programs: positive outcome of R$ 9.7 Billion in Net Income

PROCOP (R$ 4.3 Billion), PRODESIN (R$ 3.3 Billion) and PROEF (R$ 2.1 Billion) increased Net Income by 41%.

Divestment Program Operating Costs

Optimization Program

Program to Increase

Operational Efficiency

Of UO-BC and UO-RIO

R$ Billion

Structuring Programs Gains

are equivalent of exports results of

+293 kbpd of crude oil

Structuring Programs +63 kbpd

+100 kbpd

+130 kbpd

2013 Net Income Without

Structuring Programs

13.9

PROEF

R$ -9.7 billion (-41%)

PRODESIN

3.3

PROCOP

23.6

2013 Net Income

2.1

4.3

14 14

Cash in 2013: Structuring Programs Structuring Programs : R$ 14.7 billion more in cash

Positive impact on cash: Structuring programs PRODESIN (R$ 8.9 billion), INFRALOG (R$ 0.8 billion), PRC-Poço (R$ 0.7 billion) and Procop (R$

4.3 billion) enabled a 47% higher cash position.

Avoided CAPEX was not considered in PRC-SUB in 2013

*Sales Value + Avoided CAPEX. **Gain with Income Tax discounted

R$ Billion

Cash Position 2013

46.3

0.8

PRODESIN*

8.9

4.3

PRC Poço

R$ +14.7 billion (+47%)

Cash Position

without Structuring

Programs

PROCOP**

31.6

INFRALOG

0.7

Divestment Program Integrated Management

of Logistcs Projects

Program to Reduce

Well Costs

Operating Costs

Optimization Program

15 15

R$ Billion 12/31/12 12/31/13

Short-term Debt 15.3 18.8

Long-term Debt 181.0 249.0

Total Debt 196.3 267.8

(-) Cash and Cash Equivalents 3 48.5 46.3

= Net Debt 147.8 221.6

US$ Billion

Net Debt 72.3 94.6

2.77

2.322.57

3.05

3.52

31% 31%34% 36%

39%

-10%

0%

10%

20%

30%

40%

50%

1,5

2,5

3,5

4,5

4Q12 1Q13 2Q13 3Q13 4Q13

Net Debt /Adjusted EBITDA Net Debt / Net Capitalization2 1

Debt Ratios

Net Debt/EBITDA reached 3.52 in 2013 (2.77 in 2012), due to an increase in indebtedness as a result of new borrowings and the effect of the

Real devaluation against the Dollar on net debt. Leverage was 39%.

1) Refers to the adjusted EBITDA which excludes equity income and impairment.

2) Net Debt / (Net Debt + Shareholder’s Equity)

3) Includes tradable securities maturing in more than 90 days

16 16

Targets for 2014 Higher oil and oil products production, operational efficiency and cost optimization will drive 2014 results

PROCOP – 2014 Target (R$ billion) Investments (R$ billion)

Oil Products Output (kbpd)

850 908

+1%

2014

2,148

480

760

2013

2,124

491

783

Diesel

Gasoline

Others

+11% +68%

2014

7.3

2013

Real

6.6

2103

Target

3.9

Oil Production (kbpd)

-9%

2014

94.6

2013

104.4 57%

E&P Brasil 64%

E&P Brasil

UO-BC +5.6 p.p.

2014

81.0

2013

75.4

2014 2013

1,931

UO-RIO +0.7 p.p.

2014

93.1

2013

92.4

PROEF

(Operational Efficiency %)

Máximo

Meta

Mínimo

7.5% +/- 1p.p.

+7%

17

The End