Gazprom Dividend Policy

Approved by the Company's Board of Directors in December 2019, the Dividend Policy of Gazprom provides shareholders and investors with a transparent dividend calculation mechanism, linking the dividend payouts directly to the financial performance of the Company.

The Dividend Policy includes a full list of adjustments with regard to non-monetary items to be applied when calculating dividends based on the Gazprom Group's net profit under IFRS. The adjusted net profit calculated in this way provides a more accurate picture of the Company's cash flow.

The provisions of the Dividend Policy use precise and exhaustive wording forestalling any possible misinterpretations in forecasting the expected amount of dividends to be paid by the Company. The adjustments can result in both decreases and increases of the amount on the basis of which the dividend payout is determined.

At the same time, the Dividend Policy contains a provision limiting the payout conditions in order to additionally secure the financial sustainability of the Company. If the debt burden of the Gazprom Group exceeds the level of 2.5 as measured under the net debt/EBITDA indicator, the Board of Directors may resolve to propose the amount of dividends below the target levels.