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2.36” / 5.99cm

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COMPANY PRESENTATION November 2018

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2.36” / 5.99cm

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DISCLAIMER

The information contained herein pertaining to SIBUR (the "Company") has been provided by the Company solely for use at this presentation. By

attending this presentation, or by reading these presentation slides, you agree to be bound by the limitations set out below. This presentation does

not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to sell or issue, or any solicitation of any offer to

purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of, or be relied on in

connection with, any contract or investment decision relating thereto.

No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy,

completeness, correctness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise

of their own judgment. The Company accepts no responsibility for any losses howsoever arising, directly or indirectly, from this presentation or its

contents. The material contained in this presentation is presented solely for information purposes and is not to be construed as providing

investment advice. As such, it has no regard to the specific investment objectives, financial situation or particular needs of any recipient. There

may be material variances between estimated data set forth in this presentation and actual results, and between the data set forth in this

presentation and corresponding data previously published by or on behalf of the Company.

This presentation contains forward-looking statements, including (without limitation) statements containing the words "anticipates," "expects,"

"intends," "may," "plans," “forecasts,” "projects," "will," "would", "targets,“ “believes” and similar words. These statements are based on the current

expectations and projections of the Company about future events and are subject to change without notice. All statements, other than statements

of historical fact, contained herein are forward-looking statements. Forward-looking statements are subject to inherent risks and uncertainties,

such that future events and actual results may differ materially from those set forth in, contemplated by or underlying such forward-looking

statements. The Company may not actually achieve or realize its plans, intentions or expectations. There can be no assurance that the Company's

actual results will not differ materially from the expectations set forth in such forward-looking statements. Factors that could cause actual results to

differ from such expectations include, but are not limited to, the state of the global economy, the ability of the petrochemical sector to maintain

levels of growth and development, risks related to petrochemical prices and regional political and security concerns. The above is not an

exhaustive list of the factors that could cause actual results to differ materially from the expectations set forth in such forward-looking statements.

The Company and its Affiliates are under no obligation to update the information, opinions or forward-looking statements in this presentation.

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

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2.81” / 7.14cm

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Russia 58%

Europe 30%

Asia 6%

CIS 5% Other 1%

380 412

455

544

2015 2016 2017 LTM Sep18

Leading EM petrochemical company

— Would be a top-10 petrochemicals-focused public company by

2017 EBITDA (c.$3 bln, with strong further growth potential on the back

of ZapSib - major expansion project)

— Average EBITDA margin of 35% over last 3 years (30%+ in average

since 2010)

Production base in West Siberia – a region attractive for petrochemical

operations thanks to abundant low-cost feedstock (LPG and naphtha)

— export-bound transportation costs and duty results in attractive prices

for the stranded feedstock in West Siberia

— barriers to entry due to SIBUR’s extensive infrastructure in the region

Close-to-completion (89%) 2mtpa polyolefin ZapSib project is expected to

triple SIBUR’s Olefins & Polyolefins (O&P) capacity

— Total investment budget: $9.0 bln1, c.70% already financed as of

30-Sep-18

— Our recently launched O&P project in the same geography delivered

EBITDA margin of 55% in 2017

Net Debt/EBITDA of 1.6x as of Sep-18; Baa3/BB+ rated by

Moody’s/Fitch

— Net debt at c.$5 bln corresponds with ZapSib accumulated capex (c.$6

bln as of 30-Sep-18)

Source: The Company data

(1) Estimated capex budget. Translated into USD using historical annual average exchange rates. Residual capex Calculated based on exchange rates as of 30 Sep-18: RUB/$ at 65.6, RUB/EUR at 76.2.

(2) Except natural gas

Key Facts

Revenue Split by Segment and Geography, 2017

Key Financials

136 140 161

195

2015 2016 2017 LTM Sep18

EBITDA margin x%

36% 34% 35% 36%

Revenue, RR bln EBITDA, RR bln

SIBUR AT A GLANCE

Olefins & Polyolefins

19%

Plastics, Elastomers and Intermediates

32%

Midstream 41%

Other 8%

Petrochemicals

$9.0 bln

$3.2 bln

c.90% dollar-linked revenue2

A INTRODUCTION TO SIBUR

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

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Midstream

Source: The Company data

Note: Represented scheme includes LPG and naphtha purchased from third parties for resale, as well as certain LPG and naphtha volumes produced directly from APG processing

(1) Capacity additions estimates of the Company of 500 kt for PP, 1,500 kt for PE. (2) JV sales include share of PVC, caustic soda (RusVinyl) and PP (Poliom) sales.

(3) Other revenue for the FY 2017 (not indicated on the graph) – RR 38 bln

LOGISTICS CLIENTS SUPPLIERS

Complementary Petrochemical and Midstream Businesses Operating on Market Terms Enables

Smoothing Cash Flow and Earnings Volatility

BALANCED INTEGRATED BUSINESS MODEL

Associated petroleum gas (APG) is a by-product of oil production

Natural gas liquids (NGLs) include raw NGL, LPG (liquefied petroleum gas) and naphtha. Raw NGL is a by-product of gas production

Feedstock includes LPG, naphtha and raw NGL. Composition may vary from year to year depending on market conditions and other limitations

oil producers gas producers

APG

(22.3 bcm)

NGLs

(3.6 mt)

gas

fractionation

7.5 mt

PETROCHEMICALS

1.2 mt

2.4 mt

Natural gas (18.5 bcm)

NGLs

6.0 mt

LPG and naphtha (2.9 mt)

Oil & Gas companies

Definitions:

0.7 mt2

gas

processing

LPG and naphtha (5.8 mt)

88

147

135

47

External revenue

RR bln

FY 2017 data

Plastics,

Elastomers & Intermediates

Olefins &

Polyolefins

+ 2.7 mtpa of

LPG and 0.3

mtpa of ethane

post ZapSib1

(from external

sales to O&P)

No cannibalization of

Midstream as all

intersegment flows will be

priced at market level and

arm’s length basis

A INTRODUCTION TO SIBUR

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

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2.81” / 7.14cm

3.16” / 8.02cm

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Polypropylene (PP) and derivatives

Polyethylene (PE)

Olefins (ethylene, propylene)

External Internal

184

45

229

89

Revenue EBITDA

Source: The Company data; (1) Incl. PTA

Note: External revenues for the FY 2017 totaled RR 455 bln, including O&P (RR 88 bln), PE&I (RR 147 bln), Midstream (RR 184 bln) segments and other revenue (RR 35.4 bln);

EBITDA was at RR 161 bln, including O&P (RR 45 bln), PE&I (RR 30 bln), Midstream (RR 89 bln) segments and other (RR (3.5) bln).

Midstream

Financial

Results

(2017),

RR bln

Olefins & Polyolefins Plastics, Elastomers & Intermediates

EBITDA

margin

39%

88

25

113

45

Revenue EBITDA

EBITDA

Margin

40%

147

2

149

30

Revenue EBITDA

EBITDA

margin

20%

Internal External Internal External

PET, Glycols, EPS, alcohols

Elastomers

MTBE and fuel additives

Intermediates and other chemicals1

Key

Products

Share in

Group

Total

41% 56% 19% 28% 32% 19%

Key End

Markets

THREE INTEGRATED BUSINESS SEGMENTS

25 18

15

13 13

16

Chemicals

Automotive

Construction

Fuels

FMCG

Traders & Other

55

34

10

Petrochemicals

Utilities and fuels

Traders & Other

ZapSib is

expected

to triple

polyolefin

capacity

% %

Liquefied petroleum gas (LPG)

Natural gas

Naphtha

Raw natural gas liquids (raw NGL)

(55%

Tobolsk PP)

Petrochemicals Business

33

22

9 8 8

19

Packaging

FMCG

Construction

Chemicals

Hygiene products

Traders & Other

%

A INTRODUCTION TO SIBUR

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

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2.8

4.8

5.8

Production 2013 20172.1 2.0 3.4

6.1

2.8

4.8 5.8

3.1

Sales 2013 2017 Столбец1 2019

2.0 2.2 2.4

2009 2013 2017

47

123

184

2009 2013 2017

STRENGTHENING OF THE POSITIONS IN THE REGION BACKED

SUSTAINABLE GROWTH IN PETROCHEMICALS

Revenue Dynamics1 Sales Volumes Dynamics1

Source: The Company data

Note: 2009 and 2013 reporting years had a different reporting segmentation. For comparison purposes, the figures for 2009 and 2013 include the following products as per previous reporting system: Olefins & Polyolefins: PE (LDPE), PP, olefins and BOPP-films;

Plastics, Elastomers & Intermediates: commodity rubbers, specialty rubbers, thermoplastic elastomers (SBS), PET, glycols, EPS, alcohols, acrylates, plastic compounds, intermediates and other chemicals, MTBE and other fuels and fuel additives; Midstream:

LPG, natural gas, naphtha, raw NGL.

(1) External. (2) Capacity additions estimates of the Company of 500 kt for PP, 1,500 kt for PE.

14

31

88

2009 2013 2017

6.1x

0.5 0.6

1.2 3.2

2009 2013 2017 Column1 Column2

2.6x

6.4x OLEFINS & POLYOLEFINS Post-ZapSib2

1.2x

57

107

147

2009 2013 2017

2.6x

PLASTICS, ELASTOMERS

& INTERMEDIATES

3.9x

MIDSTREAM

2009 2013 2017 2009-2017

growth SEGMENT 2009 2013 2017

2009-2017

growth 2017PF

growth

PF

RR bln mln t

EBITDA

margin

20%

EBITDA

margin

39%

EBITDA

margin

40%

(55% Tobolsk PP)

LPG, Raw NGL, Naphtha

2.1x

1.6x

Internal sales to petrochemicals

External sales

Post-

ZapSib

A INTRODUCTION TO SIBUR

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

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Critical cost advantage supported by one of the lowest feedstock costs globally and facilities location

Unique transportation and gas processing infrastructure creating high barriers to entry

LOW COST CHEMICAL PRODUCER WITH HIGH BARRIERS

TO ENTRY

Close to completion c.$9bln world-scale project that is expected to triple polyolefin capacity with

expected transformational impact on SIBUR’s long-term earnings and cash flows

Further post-ZapSib growth projects already identified, including Amur, a project allowing to leverage

3rd party midstream infrastructure, and other projects

INVESTMENT HIGHLIGHTS

1

2

3

4

5

6

A LEADING EMERGING MARKETS PETROCHEMICAL COMPANY

OPERATES IN GROWING AND DIVERSIFIED END-MARKETS

AND GEOGRAPHIES

SIGNIFICANT UPSIDE FROM CLOSE TO COMPLETION

WORLD-SCALE ZAPSIB PROJECT

SUPERIOR MARGINS AND RESILIENT CASH FLOW

GENERATION THROUGH THE CYCLE

STRONG MANAGEMENT AND SHAREHOLDER TEAM WITH TRACK RECORD

OF VALUE CREATION AND TRANSPARENT CORPORATE GOVERNANCE

Top-10 public petrochemical focused companies as measured by EBITDA

Largest player in attractive CIS and Russian markets

Strong global growth rates across main products (PP & PE) and attractive long-term fundamentals for Polyolefins

end-markets growth

Structurally undersupplied Asia petrochemical market driving growth for the foreseeable future

Balanced business model, benefiting from both O&G and petchem cycles, smoothing CF and earnings volatility

High and stable EBITDA margins vs. peers due to natural hedge from commodity prices and FX fluctuations

Experienced and committed management team with industry leading expertise, supported by the largest shareholder with a

strong track record of leading a large-scale public TSR-focused company

Proven track record of completing large-scale value-accretive investment projects within budget and on time

B INVESTMENT HIGHLIGHTS

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

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0.28” / 0.70cm

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19,72210 Natural Gas

7,4819

1,495

LPG

Naphtha

299

267

98

652 308

273

312

155

PP 78% / 84%

PE2 42% / 56%3

PVC 34%4

BOPP Films 78%

A LEADING EMERGING MARKETS PETROCHEMICAL COMPANY

Largest Player in Attractive CIS and Russian Markets

Source: IHS Markit, the Company data

Note: Market shares calculated based on production volumes of SIBUR and assumed 100% share in respective JVs and respective markets production in Russia.

(1) Excluding other olefins which are both used internally and sold to the market. (2) Includes LDPE only for 2017A, and additional capacity of 1,500 ths t includes HDPE and LLDPE. (3) Current market share calculated based on Russian LDPE market. SIBUR market

share with ZapSib calculated based on Russian HDPE, LDPE, LLDPE markets. (4) Market share calculated based on the 100% of RusVinyl capacity (300 ths t) and total production capacity in Russia. (5) Company data. (6) Assuming 100% share of SIBUR’s in NPP

Neftekhimia and Poliom. (7) Capacity additions estimates of the Company of 500 ths t for PP, 1,500 ths t for PE. (8) Assuming 100% SIBUR’s share in Rusvinyl. (9) Includes production volumes under processing arrangements. (10) Includes production volumes under

processing arrangements.

Pla

sti

cs, E

lasto

me

rs &

Inte

rme

dia

tes

SIBUR Production by Key Product in 2017

ths t

Mid

str

ea

m

ths t

ths t

mcm

1,7737

ZapSib expansion (post 2021)

1,4607

1 O

lefi

ns &

Po

lyo

lefi

ns

1

ZapSib expansion (post 2021) JVs6

JV8

B INVESTMENT HIGHLIGHTS

SIBUR’s Share in Russia’s Production

LPG 45%

Naphtha 5%

Natural Gas 3%

PET 51%

MEG 66%

EPS 89%5

Current market share / expected market share post ZapSib, %

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

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0.28” / 0.70cm

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2.81” / 7.14cm

3.16” / 8.02cm

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PP

30%

HDPE

19% LLDPE

13%

LDPE

10%

PVC

19%

PET

9%

100

120

140

160

180

200

220

240

260

2012 2016 2020 2024 2028

PP, GlobalPP, AsiaPE¹, GlobalPE¹, AsiaGDP, Global

CAGR

Annual

increase

’12-’17 ’17-’25 ’17-’25

PP, Global 5.4% 4.6% 4 mln t

PP, Asia 7.8% 5.8% 3 mln t

PE1, Global 4.2% 4.2% 5 mln t

PE1, Asia 7.1% 5.7% 3 mln t

GDP, Global 2.7% 3.0%

PE & PP Are the Most Widely Used Polymers PE & PP Sustainably Grow Faster than World GDP

Source: IHS Markit, AME, Bloomberg, Green Markets

(1) PE includes HDPE, LDPE, LLDPE. (2) Virgin plastics demand.

Evolution of PE1/PP Consumption2 and GDP

B INVESTMENT HIGHLIGHTS

OPERATES IN GROWING AND DIVERSIFIED END-MARKETS AND

GEOGRAPHIES (1/3) PE & PP Are Expected to Continue to Grow Faster than GDP over 2017-2025E with Asia

Outperforming the Rest of the World

2

(Index) mln t

2017 World Major Polymers Consumption

Polypropylene

70 mln t, 30%

232

mln t

Polyethylene

97 mln t, 42%

Growth of Chemical Products Consumption Continue to Outperform Other Materials

CAGR’10-17, %

4.7%

3.9% 4.4%

3.2% 2.8% 2.7%

1.8%

PP PE Nickel Cement Steel Copper Zinc

GDP growth '10-17 = 1.9%

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

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0.28” / 0.70cm

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Russia + CIS

Middle East

Europe North America

91

6.2

24

0.3

Surplus

Shortage

Source: IHS Markit, the Company data

(1) Homopolymer. (2) Impact copolymer. (3) Random copolymer.

Being the largest

importer of PP and PE,

Asian markets drive

much of the global

supply/demand

Asian markets being by

far largest, fastest

growing and strongly

undersupplied

throughout 2017-28E

1

2

X – Demand for PP and PE in 2017, mln t

Y – Annual increase in demand for PP and PE,

’17-28E, mln t

Net trade by 2028E

24 0.6

4 0.2

10 0.5

Net Import /

(Net Export) by 2028E

North America (13)

Europe 3.5

Russia + CIS (6)

Middle East (25)

Asia 32

X

Y

ZapSib Will Allow to Enter New Market Segments

PE LDPE LLDPE HDPE

Films

Cable Insulation

Injection Molding

Pipes

Anticorrosion coatings

Blow Molding

PP PPH1 ICP2 RCP3

Pipes

Injection Molding

Compounds

Films

Caps & Closures

Current SIBUR solutions ZapSib solutions

OPERATES IN GROWING AND DIVERSIFIED END-MARKETS AND

GEOGRAPHIES (2/3) ZapSib Conveniently Positioned to Supply Both Asian and European Market

2

B INVESTMENT HIGHLIGHTS

64

64

64

255

255

255

178

210

216

0

140

149

0

140

149

102

178

178

128

166

153

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0

115

153

0

Body Text

Background

Table Highlighting, second and subsequent bullets

1st Bullet colour

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

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11

86,115,0

115,153,0

194,224,224

208

178

163,209,209

0,104,109

237

204

0

5

10

15

20

25

30

35

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Source: IHS Markit

(1) The Company analysis

B INVESTMENT HIGHLIGHTS

OPERATES IN GROWING AND DIVERSIFIED END-MARKETS AND

GEOGRAPHIES (3/3) Emerging Markets Are the Major Source of Consumption Growth

2

29.6 kg per person

NA & Europe

Demographic Change Sustainability / Food Loss Functionality / Shelf Appeal Efficiency / Transportation

Population (millions)

Market Trends

Drive Packaging

Consumption

Market Drivers

70% of population in emerging regions

1

c.60MMT PE upside potential assuming

Asian per capita consumption grows to

Europa/NA levels1

2

Market drivers require increasing use of

high performance solutions outpacing

growth in demand for traditional materials

3

Drivers of Polyethylene Consumption Growth

12.8 kg per person

Other

CIS excl.

Russia

Asia Russia

ME

Europe

NA

20

17

– P

E D

em

an

d p

er

Cap

ita

(kg

pe

r p

ers

on

)

Headwind from plastic recycling

64

64

64

255

255

255

178

210

216

0

140

149

0

140

149

102

178

178

128

166

153

204

0

115

153

0

Body Text

Background

Table Highlighting, second and subsequent bullets

1st Bullet colour

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

12

86,115,0

115,153,0

194,224,224

208

178

163,209,209

0,104,109

237

204

3

B INVESTMENT HIGHLIGHTS

Source: The Company data

(1) SIBUR International. (2) Amsterdam, Rotterdam, Antwerp.

ZapSib Impact on Logistics Infrastructure

CIS

Russia

St. Petersburg

Vostochnyy

Vladivostok

Europe

Turkey

Shanghai

China

SI1

ARA2

LPG shipment to Europe:

Specialized fleet for hazardous cargo

Longer distance

Export duty

Worldwide Polymer Shipment:

Easily-available and relatively cheap

transport

Various means of transportation

LOW COST CHEMICAL PRODUCER WITH HIGH

BARRIERS TO ENTRY (1/2)

Western Siberia

Tobolsk

Transportation Cost of Solid Granules Cheaper than Liquids under

Pressure

LPG shipment Today:

Export duty

High costs of transporting hazardous

flammable liquids by train

Empty wagons for return trip to Russia

Longer distance

Polymer shipment Post ZapSib launch:

No export duties

Lower costs (inexpensive ways to transport

polyolefin granules)

Higher spreads

Favourable demand trends in end markets

Transportation Cost of Solid Granules Cheaper

than Liquids under Pressure

seaports / border crossings

warehouses

rail transportation (containers)

auto transportation

shipping

rail transportation (carriage)

ZapSib

64

64

64

255

255

255

178

210

216

0

140

149

0

140

149

102

178

178

128

166

153

204

0

115

153

0

Body Text

Background

Table Highlighting, second and subsequent bullets

1st Bullet colour

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

13

86,115,0

115,153,0

194,224,224

208

178

163,209,209

0,104,109

237

204

Source: The Company data, IHS Markit, BP Annual review.

(1) Converted into mmbtu at mmbtu/t ratio of 47.2 for LPG and 49.2 for Ethane. (2) CIF Japan. (3) FOB USGC. (4) DAF Brest propane-butane (50/50). (5) FOB Singapore. (6) FOB USGC. (7) CIF North West Europe. (8) Export duty and freight calculated

based on IHS data, rail transportation costs to Kstovo calculated based on Russian Railways tariffs for 2017, assuming 58.3 RR/$ exchange rate, Ust-Luga as a station of destination, leased railcars, and 66t cargo capacity of a tank wagon.

LPG

LOW COST CHEMICAL PRODUCER WITH HIGH

BARRIERS TO ENTRY (2/2) Russia Is Full of Hydrocarbons and Major Oil Fields (West Siberia) Are Far from

Key End Markets, Making the Region a Natural Place for Petrochemical Operations

3

Naphtha

2017, $ / t 2017, $ / t

West Siberia is a market with one of the lowest energy costs globally, providing strong competitive advantage to petrochemical operations

Abundant NGL supply paired with limited utilisation options provides petrochemical operations in the area with ample low-cost feedstock supply

10.6

8.7

8.5

2017, $ / mmbtu1

4.8

Western Siberia

Tobolsk

B INVESTMENT HIGHLIGHTS

220

378

484

465

468

Netback price in Central Russia(Kstovo)

Recoverable Excise for NaphthaConverters

Netback price in Central Russia(Kstovo) before excise tax

Transport & Duties from Kstovo toEurope

Europe

US

Asia

(106)

(157)

5

6

7

8

225

396

410

499

Netback price in West Siberia

Transport & Duties

Europe (main destinationfor Russian producers)

US

Asia

(171)

3

2

4

64

64

64

255

255

255

178

210

216

0

140

149

0

140

149

102

178

178

128

166

153

204

0

115

153

0

Body Text

Background

Table Highlighting, second and subsequent bullets

1st Bullet colour

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

14

86,115,0

115,153,0

194,224,224

208

178

163,209,209

0,104,109

237

204

Source: The Company data, IHS Markit

ZapSib Is Expected to Triple PE/PP Capacity Adding 2 mtpa to Existing Operations and Utilize

Ample Own Advantaged Feedstock

Fixed costs WE LPG cash

cost

Fixed

ZapSib cash

cost

Logistic

arbitrage

Utilities

Variable

Net

Feedstock

Other

SIGNIFICANT UPSIDE FROM WORLD-SCALE ZAPSIB PROJECT

AND FURTHER POST-ZAPSIB GROWTH PROJECTS (1/4)

4

B INVESTMENT HIGHLIGHTS

ZapSib Is one of the lowest-cost project globally and expected to be positioned in the 1st quartile on the global ethylene cost curve driven by

Low feedstock cost (LPG netback price in West Siberia)

Low energy cost in Russia

Economy of scale and low labour cost in Russia

0

200

400

600

800

1,000

0 40 80 120 160 200

$ /

t

Cumulative Production - mln t

MDE

Avg

NAM

Avg

NEA

Avg

WEP

Avg

ZapSib projected

cash cost

2022, assuming Brent oil price of 68.7 $/bbl

…the Project Is Expected to Be Positioned in the 1st Quartile

on the Global Ethylene Cost Curve

Considering Advantageous Geography and World-Scale

Size of ZapSib…

64

64

64

255

255

255

178

210

216

0

140

149

0

140

149

102

178

178

128

166

153

204

0

115

153

0

Body Text

Background

Table Highlighting, second and subsequent bullets

1st Bullet colour

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

15

86,115,0

115,153,0

194,224,224

208

178

163,209,209

0,104,109

237

204

SIGNIFICANT UPSIDE FROM WORLD-SCALE ZAPSIB PROJECT

AND FURTHER POST-ZAPSIB GROWTH PROJECTS (2/4) ZapSib Is a Scale-Up and Extension of Tobolsk PP Plant Experience

Source: The Company data

(1) Average SIBUR selling prices (FY2017) calculated using exchange rate of 58.3 RR/$. (2) Calculated as average EBITDA margin over 2016-2017. (3) ZapSib capacity figures are estimates of the Group. (4) IHS actual 2017

prices. PE blended price for HDPE and LLDPE. (5) 50% China / 50% Russia. (6) Weighted average price for fuel components and butadiene (94 ktpa of butadiene, 135 ktpa of fuel components) calculated using exchange rate

of 58.3 RR/$.

ZapSib (Project in Progress)3

ZapSib: 2 mtpa

Expected launch in 2019

500 ktpa

+$1,190 per tonne4

PP5

LPG

2.7 mtpa

1,500 ktpa

+$1,371 per tonne4

PE5

Key Features

butadiene,

fuel

components

ethane

0.3 mtpa

Scale-up of the Polyolefin capacity, combined

with more stable and easily-manageable

Ethylene production technology

Introduction of new grades of PE (HDPE and

LLDPE)

Management team, experienced in

construction, commissioning and running

modern Polyolefin Plant

Established distribution channels, and sales

teams well-prepared for further expansion

229 ktpa

+$884 per tonne6

Tobolsk PP Plant

Tobolsk PP: 0.5 mtpa

Launched in 2013

500 ktpa

$1,215 per tonne1 PP

LPG

610 ktpa

2017 Results

510 kt PP output achieved

$342 mln EBITDA contribution

55% EBITDA margin (average

EBITDA margin of 63%2 since fully

launched)

RR 57 bln (~$2 bln) CapEx Technology:

PDH (propane dehydrogenation); licensor UOP

Gas-phase polymerisation; licensor INEOS

Technology:

EPB cracker; licensor Linde AG

PE unit: gas-phase polymerisation (Innovene FullFlex) / suspension polymerisation (Innovene) licensor INEOS

PP unit: Spheripol; licensor LyondellBasell

B INVESTMENT HIGHLIGHTS

4

64

64

64

255

255

255

178

210

216

0

140

149

0

140

149

102

178

178

128

166

153

204

0

115

153

0

Body Text

Background

Table Highlighting, second and subsequent bullets

1st Bullet colour

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

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instructions in this box

16

86,115,0

115,153,0

194,224,224

208

178

163,209,209

0,104,109

237

204

Source: The Company data

(1) Source: Gazprom. (2) Expected capacity in billion cubic metres. (3) Expected capacity in million cubic metres.

SIGNIFICANT UPSIDE FROM WORLD-SCALE ZAPSIB PROJECT

AND FURTHER POST-ZAPSIB GROWTH PROJECTS (3/4)

Further Growth in Regions with 3rd party Midstream Infrastructure: Illustrated by Amur Project

PROJECT HIGHLIGHTS:

Rare case of gas concentrated in one location in the amount sufficient for a

world-scale contract

Gazprom is already investing in gas processing and infrastructure to export gas

to China with ethane as by-product – ready-made midstream for SIBUR

New region of operations for SIBUR and pure Asian play

Strategic partnership expected to bring or secure additional finance and

share business and implementation risks

Skovorodino

Kovytkinskoye

Field

Chayandinskoye

Field

Products: Methane, ethane,

propane, butane, pentane-hexane

fraction

Gas processing capacity1

42 bcm2

Helium production capacity

60 mcm3

Amur GPP

Gazpom

Markets

Meth

an

e

C3 –

C4

Heli

um

C5+

Cracker

(1.5 mtpa)

PE UNITS

(1.5 mtpa) Ethylene

Amur GCC + Potential Partner (s) C2 (Ethane) for Amur GCC

Svobodny

PROJECT UPDATE:

Long term feedstock contract with Gazprom signed in May 2018

Dedicated legal entity and project team created, technologies and licensors

chosen. Basic design begun in June 2018

Final investment decision expected end of 2019 or soon after

Expected mechanical completion by mid-2024, synchronized with AGPP

reaching designed capacity

Gazprom

Amur GPP

EUROPE

B INVESTMENT HIGHLIGHTS

4

64

64

64

255

255

255

178

210

216

0

140

149

0

140

149

102

178

178

128

166

153

204

0

115

153

0

Body Text

Background

Table Highlighting, second and subsequent bullets

1st Bullet colour

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

17

86,115,0

115,153,0

194,224,224

208

178

163,209,209

0,104,109

237

204

Source: The Company data

(1) Reliance SIBUR JV Elastomers production (India)

Midstream Olefins & Polyolefins Plastics, Elastomers &

Intermediates

ZapSib

Construction phase Design phase

Amur project

Opportunities to

increase NGLs as a

gas industry by-

product on the back of

increasing gas

condensate base in the

region

DOTP

TPE

PTA

BR1

Following significant

growth over the past

decade, no new

material investments

are expected

Further growth in the highest-

margin O&P segment

1

2

3

Profitable growth beyond

core production base to tap

new O&G regions with a

potential to leverage

midstream infrastructure

developed by 3rd parties

Continuously pursue

operational excellence

Expand core

production base

Ideas phase

Monetisation of low-cost

hydrocarbons in Tobolsk with

integration into existing

infrastructure and facilities

Developing

petrochemicals leveraging

other companies

midstream infrastructure

Develop new products

based on local needs

(i.e. propylene oxide)

Incremental projects with

low capital requirements

based on our expertise in

petchem facilities

construction

SIGNIFICANT UPSIDE FROM WORLD-SCALE ZAPSIB PROJECT

AND FURTHER POST-ZAPSIB GROWTH PROJECTS (4/4)

4

Continuous Ideas Screening with a Focus on Profitable Niches and Feedstock Monetization

B INVESTMENT HIGHLIGHTS

64

64

64

255

255

255

178

210

216

0

140

149

0

140

149

102

178

178

128

166

153

204

0

115

153

0

Body Text

Background

Table Highlighting, second and subsequent bullets

1st Bullet colour

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

18

86,115,0

115,153,0

194,224,224

208

178

163,209,209

0,104,109

237

204

70 79 66 61

89

127 8

16 34 32

30

32

7

15

37 49

45

40

(6) (7) (2) (1) (3) (5) 2013 2014 2015 2016 2017 Sep 2018

LTM

SIBUR EBITDA

($ bln)

2.5 2.7 2.2 2.1

2.8 3.2

SIBUR EBITDA

(RR bln)

Balanced Business Model Allowing to Benefit from Both O&G and Petrochemical Cycles,

Smoothing Cash Flow and Earnings Volatility

Source: The Company data.

(1) Adjusted for estimated value of naphtha trading operations via Ust-Luga, ceased in 2015

B INVESTMENT HIGHLIGHTS

Downstream Integration and Resilience of EBITDA Margin Key Pillars of Sustainable Margins

RR bln

Balanced business model with integration into

feedstock

Supply contracts pricing formulas allowing to

partially pass on O&G volatility to suppliers

Natural hedge from commodity prices and FX

fluctuations

SUPERIOR MARGINS AND RESILIENT CASH FLOW GENERATION

THROUGH THE CYCLE AS BASIS FOR GROWTH INVESTMENTS (1/3)

5

Midstream

Plastics, Elastomers

& Intermediates

Unallocated

Olefins &

Polyolefins

136 140

161

103

79

195

109 100

53 44

54 69

Brent price

(avg $/bbl)

29% 32%1 36% 34% 35% 36% EBITDA margin

64

64

64

255

255

255

178

210

216

0

140

149

0

140

149

102

178

178

128

166

153

204

0

115

153

0

Body Text

Background

Table Highlighting, second and subsequent bullets

1st Bullet colour

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

19

86,115,0

115,153,0

194,224,224

208

178

163,209,209

0,104,109

237

204

RR 544 bln

RR 385 bln

Revenue OpEx

33%

9%

18%

20%

5%

15%

20%

9%

11%

10%

18%

32%

LPG &

Naphtha

Natural

Gas

Olefins &

Polyolefins

Plastics &

Elastomers

MTBE

Other

Other

D&A

Energy

Transportation

& Logistics

Feedstock&

Materials

Staff

Source: the Company data

B INVESTMENT HIGHLIGHTS

Natural Hedge from Commodity Prices and FX Fluctuations: Production Facilities Are Located in

Russia Benefiting from Inverse Correlation of RR and Commodity Prices

SUPERIOR MARGINS AND RESILIENT CASH FLOW GENERATION

THROUGH THE CYCLE AS BASIS FOR GROWTH INVESTMENTS (2/3)

5

0

10

20

30

40

50

60

70

0

200

400

600

800

1,000

1,200

1,400

1,600

PP rafia China Main Port. Spot Liquids weighted export price

NGLs weighted cost RR/$

Hard Currency ($, EUR) Rouble

FX Exposure of SIBUR Revenue and Costs

$ linked

LTM as of Sep 2018

Chemical Spread Is Supporting Midstream Margin

$ / t

2013

O&P segment

spread

Midstream

spread

2014 2015 2016 2017

Transportation and logistics

costs $ linked

RR/$

64

64

64

255

255

255

178

210

216

0

140

149

0

140

149

102

178

178

128

166

153

204

0

115

153

0

Body Text

Background

Table Highlighting, second and subsequent bullets

1st Bullet colour

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

20

86,115,0

115,153,0

194,224,224

208

178

163,209,209

0,104,109

237

204

Typical

margin

chemicals

High

margin

chemicals

B INVESTMENT HIGHLIGHTS

SUPERIOR MARGINS AND RESILIENT CASH FLOW GENERATION

THROUGH THE CYCLE AS BASIS FOR GROWTH INVESTMENTS (3/3) High and Stable EBITDA Margins Compared to Peers

With an average EBITDA margin of 33% over 2012-2017, SIBUR is among the most profitable companies of the peer set

Source: Companies data

5

35%

38%

30%

23%

20%

21%

20%

15%

25%

5%

10%

15%

20%

25%

30%

35%

40%

2012 2013 2014 2015 2016 2017

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

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Portfolio of Executed Projects

Source: The Company data

(1) Projects of more than RR 1 bln budget. (2) Converted into USD at respective RR/$ exchange rate for each year – 31.1 for 2012, 31.9 for 2013, 38.6 for 2014, 61.3 for 2015, 66.8 for 2016, 58.3 for 2017.

63

116

142

300

81

Feedstock

processing

infrastructure

Transportation

infrastructure

Petchem Other TOTAL

Construction

and

expansion of

GPPs, GFU

Ust-Luga

transshipment

facility, railway

loading racks,

raw NGL

pipelines

Tobolsk PP

production and

multiple smaller

scale projects

Maintenance,

R&D, IT,

and other ~700 in 8yrs

RR bln (excl. VAT)

ZapSib

SIBUR Execute Projects within Budget and in Time

2 2

1

3 3

2

1

(20%) (15%) 5% (10%) (5%) 10% 15%

Weighted Average Variance

Savings Over the budget

80% of projects within 10% variance vs. initial budget

More than 50% of projects with saving vs. initial budget

Executed projects:

14 large-scale projects in 2012-2017

Total budget = 210 RR bln

All the projects executed in time or ahead of time

Variance from

Committed Budget

9%

17%

20%

43%

11%

% of

total

Current Management Team Has Proven Track Record of Completing Large-Scale1 Value-

Accretive Investment Projects within Budget and Ahead of Time

STRONG MANAGEMENT TEAM WITH TRACK RECORD OF VALUE

CREATION AND TRANSPARENT CORPORATE GOVERNANCE (1/2)

6

B INVESTMENT HIGHLIGHTS

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

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Two-tier governance structure with Board of Directors and strong

management team focused on shareholder value maximization

4 independent members of the Board of Directors

Peter Lloyd O’Brien chairs Audit Committee

Alexey Komissarov chairs Human Resources and Remuneration

Committee

Management team with clear accountability and being

compensated according to SIBUR’s performance vs. its peers

Leonid Mikhelson

Chairman of the

Management

Board, PAO NOVATEK

Dmitry Konov

Chairman of the

Management

Board of PJSC SIBUR

Alexander Dyukov

CEO, PAO Gazprom Neft

Wang Dan

Executive Vice President

of the Silk Road Fund

Gennady Timchenko

Member of the Board of

Directors, PAO NOVATEK

Chang Zhenyong

Vice President and Head of

Chemical Division at

Sinopec

Vladimir Razumov

Deputy Chairman of the

Management Board, PAO

SIBUR Holding

Kirill Shamalov

Deputy Chairman of the

Management Board

Alexey Komissarov

Chairman of Federal Freight,

Director of RANEPA

Formerly Minister of the

Government of Moscow

and Advisor of Mayor of

Moscow

Peter Lloyd O’Brien

Chairman of TransFin-M,

Board positions2 - TMK (AC

Chair), TFM (Chairman),

and Sberbank CIB US

(INED)

Formely Co-Head of

Investment Banking at

Morgan Stanley, CFO of

Rosneft

Andrei Vernikov

Multiple Board Member

positions at banks

Formerly Professor of

Banking at the Higher

School of Economics

Sergey Vasnetsov

Board Member at

Eurochem AG

Formerly SVP of Strategic

Planning at LyondellBasell

High Corporate Governance Standards

Source: The Company data

(1) While Novatek generated dollar yearly TSR of 20% since IPO in 2005. (2) As of Jul-2018.

Overview of Governance Concept Overview of Board of Directors

.

.

.

Shareholding Structure

Ind

ep

en

den

ts

STRONG MANAGEMENT TEAM WITH TRACK RECORD OF VALUE

CREATION AND TRANSPARENT CORPORATE GOVERNANCE (2/2)

6

B INVESTMENT HIGHLIGHTS

Leonid Mikhelson

48.5%

Gennady

Timchenko 17.0%

Current/former

Managers of

PJSC SIBUR

14.5%

Sinopec

10.0%

The Silk

Road Fund

10.0%

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Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

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136 140 161

195

35.7% 33.9% 35.4% 35.8%

2015 2016 2017 9M 2018 LTM

6 9

8

9

142 149 169

204

41 24

28 37

43

121 107 116

2015 2016 2017 9M 2018 LTM

84

146 135

153

119

138 153

169

2015 2016 2017 9M 2018 LTM

380 412

455

544

2015 2016 2017 9M 2018 LTM

STRONG & RESILIENT FINANCIAL PERFORMANCE

Source: The Company data

(1) In $ terms. (2) RR/$ average exchange rates of 60.6 used for 9M 2018 LTM and 58.4, 67.0, 61.0 for the years 2017, 2016, 2015, respectively. (3) Adjusted for the share of EBITDA from JV and associates,

including RusVinyl, Yuzhno-Priobsky GPZ, NPP Neftekhimia, Sibgazpolimer, SNHK, Reliance Sibur Elastomers Private Limited. (4) CapEx includes purchase of property, plant and equipment, as well as purchase of

intangible assets and other non-current assets.

C FINANCIAL HIGHLIGHTS

RR bln

Revenue, $ bln2 6.2 6.1 7.8 9.0

Operating Cash Flow CapEx4

+73% +16%

+11%

+10%

Capex, $ bln2 1.4 2.2 2.3 2.5

RR bln

(7%) +31%

RR bln

RR bln

Adj EBITDA, $ bln2,3 2.3 2.2 2.9 3.4

OCF, $ bln2 2.0 2.1 2.6 2.8

EBITDA

margin, %

Revenue Adjusted EBITDA2

ZapSib Capex Other Capex

EBITDA

JV’s share of

EBITDA

Adjusted EBITDA3

+8% +10%

+20%

+5% +13%

+21% 12%

Revenue

CAGR‘15-171

16%

OCF

CAGR‘15-171

29%

CapEx

CAGR‘15-171

11%

EBITDA

CAGR‘15-171

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Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

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INVESTMENT HIGHLIGHTS

1

2

3

4

5

6

A LEADING EMERGING MARKETS PETROCHEMICAL COMPANY

OPERATES IN GROWING AND DIVERSIFIED END-MARKETS

AND GEOGRAPHIES

LOW COST CHEMICAL PRODUCER WITH HIGH

BARRIERS TO ENTRY

SIGNIFICANT UPSIDE FROM WORLD-SCALE

ZAPSIB PROJECT AND FURTHER POST-ZAPSIB

GROWTH PROJECTS

SUPERIOR MARGINS AND RESILIENT CASH FLOW

GENERATION THROUGH THE CYCLE

STRONG MANAGEMENT TEAM WITH TRACK RECORD OF VALUE

CREATION AND TRANSPARENT CORPORATE GOVERNANCE

APPENDIX

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

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SIBUR business

1. What are the company’s production capacities?

2. How is your feedstock priced? Do you see any risks of feedstock undersupply?

3. What is SIBUR midstream infrastructure?

4. What is SIBUR feedstock base?

5. What is your debt position? Do you see any liquidity risks?

6. Who is your management team?

EHS1

7. How petchem products are different from other commodities?

8. What are SIBUR’s achievements in EHS1?

9. How SIBUR ensures industrial-safety on its production sites?

ZapSib

10. How competitive is ZapSib at delivery to target markets?

11. How does ZapSib affect SIBUR’s business?

12. What is ZapSib ramp-up profile?

13. How ZapSib is positioned vs. global peers projects?

14. Why ZapSib is positioned at the lower end of the cost curve?

(1) Environmental, Health & Safety.

D APPENDIX: FREQUENTLY ASKED QUESTIONS

FREQUENTLY ASKED QUESTIONS

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Secondary Eight

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

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970 970 980

245 270 270

1,215 1,240 1,250

PE PP

926 926 926

720 732 744

1,646 1,658 1,670

Ethylene Propylene

287 287 287

81% 89% 96%

2015 2016 2017

98% 97% 100%

2015 2016 2017

83% 90%

96%

2015 2016 2017

562 572 572

73% 79% 85%

2015 2016 2017

947 953 964

93% 95% 94%

2015 2016 2017

93%

88% 90%

2015 2016 2017

98%

87% 92%

2015 2016 2017

8.0

9.5 9.5

24.0 25.4 25.4

1. WHAT ARE THE COMPANY’S PRODUCTION CAPACITIES? Continuous Optimization of Processing and Production Capacities

Source: The Company data

Note: Nameplate capacity indicated - capacity officially registered with RosTeckNadzor. Capacity utilisation exceeds 100% when SIBUR is able to run a facility more efficiently over time, upgrading the

technology and implementing various de-bottlenecking measures

(1) Including JVs – NPP Neftekhimia, Poliom. (2) Including propylene and ethylene from O&P and PE&I segments. (3) 69% utilized for the intended purpose. (4) Including SIBUR Togliatti (80 ths tpa) and

SIBUR-Tobolsk (207 ths tpa) capacities, 62% utilized for the intended purpose. (5) Including Yuzhno-Priobskiy GPP operated under JV (since October 2015). (6) Including Uralorgsintez divested in April 2017;

capacity is used under long-term processing arrangement

Olefins & Polyolefins Midstream Plastics, Elastomers & Intermediates

Elastomers PP1 and PE

Propylene and Ethylene2

Plastics & organic synthesis products

Gas Processing5

Gas fractionation6

Capacity utilization rate, %

Production capacities, ths t / Processing volumes, bcm

ths t ths t

ths t

ths t

D APPENDIX: PRODUCTION CAPACITIES

Butadiene4

ths t

3

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

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APG Raw NGL

Pricing Drivers

Base price for APG depends on 3 key drivers:

Regulated domestic natural gas price

Target liquid fractions content, distance and processing cost (i.e.

value for SIBUR)

Alternative cost for the seller

Russian Government has consistently increased incentives for oil

companies to utilise APG: penalties for flaring increased from 4.5x the

standard emission charge in 2012 to 25x starting from 2014

With reference to international prices for LPG and naphtha, and to

domestic LPG prices

Pricing in raw NGL supply contracts is determined on an export netback

basis and reflects

Fraction content of LPG & naphtha and fractionation cost (i.e. value

for SIBUR)

Transportation costs and export duties

Alternative channels available for NGLs supplier (i.e. alternative cost

of the seller)

Key Suppliers

Contract

Characteristics

Illustrative

Margin

of Processing

92% 87%

% Guaranteed under

LT contracts

% Guaranteed under

LT contracts

Weighted average

maturity

Weighted

average maturity

14.3 YEARS

16.1 YEARS

Oil Majors Gas Majors

D APPENDIX: LONG-TERM CONTRACTS

Long-Term Contracts with Attractive Pricing Formulas

Source: The Company data

Note: As of 31-Dec-2017

D APPENDIX: LONG-TERM CONTRACTS

2. HOW IS YOUR FEEDSTOCK PRICED?

APG purchase price

Processed NGL

selling price

NGL purchase price

Processed NGL

selling price

Natural gas selling price

Margins high but volatile

(relatively to NGLs feedstock processing)

Margin substantially lower vs. APG processing but is highly robust

and stable as purchase and selling prices are strongly correlated

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

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SIBUR Owns and Operates Midstream Infrastructure Securing Feedstock

Supply to Its Chemical Business

Russia's largest and most extensive integrated

infrastructure for processing and transportation of APG and

NGLs

57% of APG produced in Russia3

71% of raw NGL produced in Russia 3

1

c.90% of annual supplies are guaranteed by long-term

contracts with weighted average maturity of c.15 years

2

No third party gas processing additions in the region over

last two decades while SIBUR doubled processing capacities

and modernized legacy transportation infrastructure by

investing $4.4 bln

3

+

+

Source: the Company data, CDU TEK and companies’ data

Note: As of 2017FY

(1) Including Yuzhno-Priobskiy GPP, JV between SIBUR and Gazprom Neft. (2) Including Uralorgsintez (0.9 mtpa) divested in April 2017 (capacity is used under long-term processing arrangement). (3) Estimate based on CDU TEK and companies’

data (FY2017)

9.52 mln t

Gas

fractionation

25.41 bcm

APG

processing

SIBUR infrastructure Third-party infrastructure SIBUR newly constructed / upgraded assets

SIBUR Asset Base in Western Siberia

8 GPPs1

out of 10

operating in region

2,712 km

Pipeline network

Tobolsk

Western Siberia

Tobolsk

Scale: 1cm= c.90km

3. WHAT IS SIBUR MIDSTREAM INFRASTRUCTURE?

D APPENDIX: MIDSTREAM INFRASTRUCTURE

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

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19 21 22 23 26 33 34 34

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

Western Siberia Other

65

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72

75

85

89

96

98

83% 82% 86%

90% 92% 93%

92% 91%

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3

201

4

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5

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6

201

7

Western Siberia Other Production (excl. flared volumes)

4. WHAT IS SIBUR FEEDSTOCK BASE?

Source: Estimate based on CDU TEK and companies’ data (FY 2017), IHS Markit, Petromarket

Russian Unstable Gas Condensate Production

Russian APG Production and Utilisation

mln t

Feedstock Overview

APG production (bcm)

APG utilization rate in West Siberia (%)

2012: Introduction of regulation targeting 95%

utilization rate by 2020 with gradual increase in fines

Oil field C1 C5 C4 C3 C2 C7+ C6 C1 C3 C2 C4 C5 C6 C7+

Core products

of oil & gas

companies

Gas field

APG / gas condensate

Raw NGL

Natural gas LPG Naphtha Oil

Petrochemical feedstock

Methane

(gas)

C1

Ethane

(gas)

C2

Heavy

fractions

C7+

Pentane

Isopentane

(gas/liquid)

C5 C3

Propane

(gas/liquid)

C4

Butane

Isobutane

(gas/liquid)

C6

Hexane

(gas/liquid)

High Concentration of O&G Production in West Siberia

West Siberia’ share in Russian oil production 57%

WESTERN SIBERIA–SIBUR feedstock base

West Siberia’ share in Russian gas production 87%

D APPENDIX: SIBUR FEEDSTOCK BASE

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5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

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5. WHAT IS YOUR DEBT POSITION? DO YOU SEE ANY LIQUIDITY

RISKS?

Debt Structure and Maturity Profile

100%

32%

94%

54%

68%

6%

28% 18%

Unsecured

Fixed / Floating

Long-term / Short-term

$ / EUR / RR

RR bln, except as stated 31 Dec 2015 31 Dec 2016 31 Dec 2017 30 Sep2018

30 Sep ‘18 vs.

31 Dec ’17, %

Total debt 457 342 312 323 3%

Conventional debt 299 182 139 95 (31%)

ZapSib related debt 158 160 173 228 31%

Cash & cash equivalents 172 61 48 19 (60%)

Net debt 285 281 264 304 15%

Conventional net debt 247 163 103 76 (26%)

ZapSib related net debt 38 118 161 227 41%

WA loan tenor (years) 6 7 7 7

WA Conventional debt 3 3 3 4

WA ZapSib related debt 13 11 10 9

Available credit lines, incl. 288 185 267 370 39%

Committed 170 113 128 112 (13%)

31 Dec 15 31 Dec 16 31 Dec 17 30 Sep 18

Debt / EBITDA 3.4x 2.4x 1.9x 1.7x

Net debt / EBITDA 2.1x 2.0x 1.6x 1.6x

Conventional net debt 1.8x 1.2x 0.6x 0.4x

ZapSib related net debt 0.3x 0.8x 1.0x 1.2x

Net debt / EBITDA (in $) 1.8x 2.2x 1.7x 1.4x

Key Figures

Leverage Ratios

Loan portfolio structure as of 30 Sep 18

Source: The Company data

(1) Items denominated in USD and EUR are converted into RR at RR/USD and RR/EUR FX rates as of 30 September 2018.

(2) Excluding the undrawn EUR ECA.

Sibur has a strong balance sheet Enhanced free cash flow, allowing it to pursue growth initiatives and return

capital to shareholders Significant retained earnings reinvested in the business Ongoing pursue of decreasing net leverage

Investment grade credit rating by Moody’s (Baa3), rated BB+ by Fitch

Overview

Cash &

Cash Equiv.

Committed

Credit Lines

19

112

259

2 21

33 29 24

73

18 18 15 15 16

128

Liquidity 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 After2028

Uncommitted

Credit Lines

Eurobonds Undrawn EUR ECA Loans RR Bonds ECA NWF RR bln (1)

RR 323 bln2

As of 30 September 2018 Total Debt of RR 323 bln1

Average interest rates (%)

% 2015 2016 2017 3Q 2018

$ den. debt 3.4% 3.3% 4.0% 4.1%

EUR den. debt 1.2% 1.1% 1.2% 1.2%

RR den. debt 12.9% 10.9% 9.3% 9.2%

D APPENDIX: DEBT STRUCTURE AND MATURITY PROFILE

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Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

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Source: The Company data

(1) Environmental Impact Index is an average indicator of the specific load on the environment as a ratio of all types of impacts (emissions, discharges and waste) to the volume of production.

6. WHO IS YOUR MANAGEMENT TEAM? Experienced Management Team with Strong Track Record in Revenue Growth and Project

Execution

EBITDA Evolution Since 2004

RR bln

Experienced and Committed Management Team

with Industry Leading Expertise

Most Board / Management Members joined at

least 10 years ago

Chairman and CEO of OOO SIBUR joined in

2003

Chairman of PJSC SIBUR joined in 2004

2002

2003

2004

2005

2007

2008

2009

2010

2011

2012

2013

2015

2017

2006

2014

2016

2018

Mikhail Karisalov

Chairman and CEO

of OOO SIBUR

Pavel Lyakhovich

Plastics, Elastomers

and Intermediates

Alexander Petrov

CFO Sergey Komyshan

Polyolefins &

Development

Projects

2001 2000 1999

Dmitry Konov

Chairman of the Mgmnt

Board and a member of

BoD of SIBUR

Vladimir Razumov

Chairman of SIBUR R&D,

project management,

ethics and discipline

committees

Igor Klimov

CEO of ZapSib&

SIBUR Tobolsk

Rustam Galiakhmetov

Production &

Performance

Improvements

Oleg Makarov

Logistics, Supply Chain

& Midstream

Vasiliy Nomokonov

Executive Director

IT, R&D

D APPENDIX: MANAGEMENT TEAM

13

161

2004 2017

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Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

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35.9

8.6

4.5 4.3 2.6 2.4 1.5 1.4 1.1 0.6

Co

pp

er

Alu

min

ium

Iron

Ste

el

Synth

etics R

ub

be

rs

Gla

ss

Cem

ent

Cart

on a

nd

Pa

per

Pla

stics

Pulp

MWth per tonne

8.1

6.7

5.5

1.8 1.4

0.7 0.6 0.6 0.5 0.2

Alu

min

ium

Synth

etics R

ub

be

rs

Copp

er

Ste

el

Iron

Gla

ss

Cart

on a

nd

Pa

per

Pulp

Cem

ent

Pla

stics

Tonne of CO2 per tonne

Source: USGS, FAO, BP, Rubber, The New Plastic Economy

Note: The average world indicators for the consumption of electricity and CO2 emission for the whole production cycle are presented

7. HOW PETCHEM PRODUCTS ARE DIFFERENT FROM OTHER

COMMODITIES?

Electricity Consumption CO2 Emission

D APPENDIX: EHS

Petchem Products Have Environmental Advantages and Leave a Smaller Carbon Footprint

Compared to Alternative Materials

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Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

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Lost Time Injury Frequency1

D APPENDIX: EHS

8. WHAT ARE SIBUR’S ACHIEVEMENTS IN EHS? Socially Responsible Business with Negative CO2 Footprint and Rigorous Focus on Health

and Safety

Safety Indicators (International Benchmark), 2017

Efficient Prevention of CO2 Emissions

(72)

7

Greenhouse gas emissions in CO2 equivalent (mln tonnes)

SIBUR

Prevented as a result of

APG processing

Through APG processing SIBUR contributes to:

Improvement in the ecological situation in petrochemical regions

Establishment of resource base for subsequent processing of

hydrocarbon resources into fuel and petrochemical products

With 1 mln m3 of APG flared, c.300 tonnes of pollutants are emitted

As SIBUR processed 22.8 bln m3 of APG in 2017, the emission of

c.7 mln tonnes of pollutants and more than 72 mln of

greenhouse gas (in СО2 equivalent) was prevented

SIBUR SHELL IOGP LANXESS BASF EVONIK

0.8

1.0 1.0

TRCF

0.4

0.8

1.1

FAR

0.20

0.36 0.27

1.70

1.40

1.11

LTIF

(1) Including contractors. Source: The Company data

(2) Industry averages. Source: IOGP (International Association of Oil&Gas Producers)

TRCF – Total Recordable Case Frequence; LTIF – Lost time injury frequency; FAR - Fatal Accident rate

2

0.98 0.85

0.30 0.36

2014 2015 2016 2017

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Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

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90.2% 89.7%

92.0%

2016 2017 1H 2018

9. HOW SIBUR ENSURES INDUSTRIAL-SAFETY ON ITS

PRODUCTION SITES?

Industrial-Safety

Repair and maintenance costs are allocated to a separate budget (fixed

assets repair and maintenance)

OpEx includes repair and maintenance costs, incl. regular maintenance

activities. Budgeting process implies tools for costs optimization

(optimization of repairs, import substitution, improved transparency of

costs, training of own repair personnel, work with contractors to reduce

the cost of services)

CapEx-part contains fixed assets upgrading and modernization costs.

Projects formation implies risk-based approach where all the projects

are assessed in terms of the risks of consequences and the effectiveness

of project implementation

Only efficient investments with clear return are made

Repair and Maintenance Expenses, RR bln

Losses due to equipment breakage Share of planned works

(%)

6.7 5.9 5.3

8.6 8.5 8.3

3.2 3.6 5.0

18.0

2015 2016 2017

18.5 18.6

Expenses for materials and spare parts in “Other raw materials” item

CapEx for modernization of the fixed assets

Repair and maintenance expenses

as % of amortisation and

depreciation 59% 51% 52%

Source: The Company data

(1) LPM – Lost profit margins –production uptime losses in money terms

OpEx

CapEx

Repair and Maintenance Costs Improvement Measures

Cutting-Edge Tools for Maintenance

9.1 6.0

2.4

4.2%

2.7%

0.9%

-2.0%

0.0%

2.0%

4.0%

0.0

5.0

10.0

15.0

20.0

25.0

2016 2017 1H 2018

LPM, RR bln production uptime losses, %1

Digital systems for business process management for maintenance and

repairs SAP, Meridium

Technical conditions monitoring systems are installed on the most

important equipment

A reliability management service is established for switching to

reliability centered maintenance (RCM)

Diagnostic units are equipped with modern instruments, regular

search and implementation of new tools is held for diagnostics quality

improvement

3%

Repairs and

maintenance

2017 Opex

D APPENDIX: EHS

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Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

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10. HOW COMPETITIVE IS ZAPSIB AT DELIVERY TO TARGET

MARKETS? Expected Position of ZapSib on 2022 Cost Curve (Including Transportation)

Source: IHS Markit

HDPE

ZapSib is expected to be one of the most cost-efficient assets to deliver to China and Western Europe

LLDPE PP

Deliv

ere

d to

W. E

uro

pe

D

eliv

ere

d to

Chin

a

0

1,000

2,000

0 35 70

$/M

etr

ic T

on

Cumulative Production – Million Metric Tons

A: ZapSib

NEA Avg

WEP Avg

MDE Avg

NAM Avg

0

1,000

2,000

0 25 50

$/M

etr

ic T

on

Cumulative Production – Million Metric Tons

A: ZapSib

NEA Avg

WEP Avg

MDE Avg

0

1,000

2,000

0 50 100

$/M

etr

ic T

on

Cumulative Production – Million Metric Tons

A: ZapSib

NEA Avg WEP Avg

MDE Avg

NAM Avg

NAM Avg

0

1,000

2,000

0 35 70

$/M

etr

ic T

on

Cumulative Production – Million Metric Tons

A: ZapSib

NEA Avg

WEP Avg

MDE Avg

NAM Avg

0

1,000

2,000

0 25 50

$/M

etr

ic T

on

Cumulative Production – Million Metric Tons

A: ZapSib

NEA Avg

WEP Avg

MDE Avg

0

1,000

2,000

0 50 100

$/M

etr

ic T

on

Cumulative Production – Million Metric Tons

A: ZapSib

NEA Avg

WEP Avg

MDE Avg

NAM Avg

NAM Avg

A A

A

A

A

A

D APPENDIX: ZAPSIB COMPETITIVENESS

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Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

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ZapSib¹

Other

Plastics,

Elastomers &

Intermediates

Olefins &

Polyolefins

Midstream

xx% Segment average EBITDA

margin '15-17, %

41%

24%

35%

External

Revenue EBITDA

EBITDA

Margin

O&P

PE&I

Mid-

stream

Group

ZapSib Is Expected to Internalize Ample Own

Feedstock…

Feedstock use by segment, mtpa

…Resulting in Expansion of O&P Revenue &

EBITDA Margin…

Revenue Contribution by Segment, %

O&P EBITDA Margin, %

…& Strong Profitability Boost for the Group

ZapSib Expected Impact on SIBUR

Source: The Company data, IHS

(1) Estimated ZapSib upside potential corresponds to 2017PF revenue assuming 100% utilisation rate, PP selling price per ton of $1,105 (average SIBUR selling price for 2017A) and HDPE selling price per ton of $1,354

(average SIBUR selling price for 2017A). EBITDA margin attributable to ZapSib’s operations represents a targeted ZapSib EBITDA margin for medium to long-term

11. HOW DOES ZAPSIB AFFECT SIBUR’S BUSINESS? ZapSib Is Expected to Result in A Long-Term Profitability Boost

D APPENDIX: ZAPSIB IMPACT ON BUSINESS

5.9

2.9

1.9

4.9

0.9 0.9

2017A 2017A PFSplit incl. expectedZapSib production

Plastics,Elastomers &

Intermediates

Olefins &

Polyolefins

External Sales of

LPG & Naphtha

8.8 8.8

Highest margin

segment

11%

21%

68%

11%

56%

34%

1

xx% - share of segment in LPG and Naphtha consumption

xx - mln t of LPG and Naphtha used by each segment

41%

55%

O&PSegmentMargin'15-17

TobolskPolymer

'17

ZapSib¹ O&PSegment

Margin PostZapSib²

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Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

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12. WHAT IS ZAPSIB RAMP-UP PROFILE?

Typical Ramp-Up Profile Benchmark of Actual Industry Ramp-Up (Sourced by Nexant)

Source: The Company data, industry benchmarks

ZapSib Ramp-up Profile Is Expected to Be in Line with Industry Benchmarks

Typically operations start at modest rates at easier units and move

over time to increase integration and throughput until the whole

complex is under commercial operation

Subsequent years affected by outages due to unexpected

fouling/coking

The following graphics illustrate actual operating rate profiles and

achieved production from real complexes monitored by Nexant. The

variability of Year 3 is most frequently caused by an external

constraint (inability to source sufficient feedstock, or market full

production).

30

40

50

60

70

80

90

100

1Q2020 2Q2019 3Q2020 3Q2019 4Q2019 1Q2021 2Q2020 4Q2020 2Q2021 3Q2021 4Q2021

Lower bound

Higher bound

Incremental ramp-up profile for a typical project

Year 1 Year 2 Year 3

80%

50%

90%

60%

90%

100%

Capacity utilization rate,%

D APPENDIX: ZAPSIB RAMP-UP PROFILE

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Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

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Project 8 Project 5

Project 12

Project 11

Project 6 Project 2

Project 3

ZapSib

Project 4

Project 7

Project 1

Project 10

300

800

1,300

1,800

2,300

2,800

1,400 2,200 3,000 3,800 4,600 5,400 6,200

Cap

acit

y

Capex/Ton

Ethylene cracker ZapSib Integrated³

Project 9

Major Global Pyrolysis Projects Overview

Source: Projects and respective capacities provided by IHS Markit, projects capex calculated based on companies’ publicly reported data

(1) Size of the buddle indicates the total capex spent on the project. (2) Including PP projects. (3) Ethylene and its derivatives production units. (4) Per special report ICIS top 100 chemical

companies 2016

13. HOW ZAPSIB IS POSITIONED VS. GLOBAL PEERS PROJECTS? With Capex Per Tonne of Capacity Broadly in Line with The Industry, ZapSib is Expected to Deliver

Superior Economics on The Back of Its Advantageous Position on The Cost Curve

SIBUR vs Global Peers

PE projects1

7,000 8,000

2

Higher cost of investment due to geographical,

climatic and infrastructure characteristics, and

necessity to import equipment and technologies

is well compensated by better position on the

cash cost of olefins and polyolefins producers

due to advantageous access to cheap

feedstock, low energy and labor costs in Russia

Successful track record of large-scale

investment projects execution and expertise in

construction risk management (No.4 in the world

by the size of investment among petrochemical

companies)4

Competitive cash cost position further

strengthened by economy of scale

D APPENDIX: ZAPSIB POSITIONING

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Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

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14. WHY ZAPSIB IS POSITIONED AT THE LOWER END OF THE COST

CURVE?

D APPENDIX: ZAPSIB COST POSITIONING

9.1 8.4 8.4

4.7 4.5 5.7

3.9

Source: The Company data, IHS Markit, World Freight Rates, Russian Railways, Vostochnaya Stevedoring Company.

(1) Freight and railway transportation costs calculated as of 08-Oct-18, transhipment costs calculated based on announced tariffs by VSC, the railway transportation costs converted into USD at 2017A

RR/$ FX rate of 58.3

ZapSib Is Expected to Be Positioned in The 1st quartile

on the Global Ethylene Cost Curve

One of the lowest-cost projects globally with cost advantage driven by:

Low feedstock cost (LPG netback price in West Siberia)

Low energy cost in Russia

Economy of scale and low labour cost in Russia

LPG shipment to

Europe:

Specialized fleet

for hazardous

cargo

Longer distance

Export duty

Worldwide Polymer

Shipment:

Easily-available

and relatively

cheap transport

Various means

of transportation

1

2

Transportation Cost of Solid Granules Cheaper than Liquids under Pressure

396

225

171

LPG in

Europe

Transport &

duties

Netback in

Tobolsk

1.5 ton of LPG is

required in order to

produce 1 ton of

polyolefin

Price for feedstock $ per ton

171*1.5

257

168

226

89

31

Savings in

case of producing

1 ton of polyolefin

in West Siberia

Transport savings

for producing

polymers in WS

Transportation cost of

1 ton of polyolefin

from Tobolsk

to China1

Benefit per

1 ton of PO

Transportation cost of

1 ton of polyolefin from Tobolsk

to Central part of Russia1

Benefit per

1 ton of PO

Deliv

ery to

Chin

a

Deliv

ery to

Centra

l

part o

f Russia

171*1.5

171*1.5

Electricity Prices in Russia for Industrial Customers are Among the Lowest

Globally

2016 2015 2017

3.2 3.3

EU

Electricity price for SIBUR is substantially lower than the country average

(31.6%)

(32.1%) Russia

SIBUR

US

Cents

/ k

W/h

1

2

WE LPG

cash

cost

Fixed

Logistics

arbitrage

Utilities

Variable

Net

Feedstock

ZapSib cash

cost

Other

Fixed costs +

upscale effect The Main Factors for SIBUR’s Low Energy Costs:

Optimization of electricity purchases in the wholesale and retail markets through the own

energy sales company

Optimization of power transmission services costs by switching to the most competitive

rates in Russia

Development of own power generation

$ per ton

The chart presented for illustrative purposes only