Company Announcements

14 November 2019

Tatneft Board of Directors resolved to convene an extraordinary shareholders meeting and recommended to pay the dividends for the 9 months of 2019

On 13 November 2019 the Board of Directors of Tatneft (by proxy voting) resolved on its own initiative to convene an extraordinary shareholders meeting and recommended to the shareholders to approve the dividends based on the results for the 9 months of 2019 in the amount of 64.47 Rubles per each preferred and ordinary share (6447% of nominal value of each share), which represents in aggregate approximately 100% of net income of PJSC Tatneft under Russian Accounting Standards (RAS) in the said period (150 billion Rubles). Upon the approval by the extraordinary shareholders meeting, taking into account the dividends paid for the 6 months of 2019 in the amount of 40.11 Rubles per each share, the additional payment based on the results for the 9 months will be 24.36 Rubles per share.

Upon determining the amount of dividends for the 9 months of 2019 the Board of Directors relied on the Company's dividend policy, taking into account the operating results in the respective period, free cash flow projections and available sources of financing for the operating and investing activities of Tatneft Group. The Board of Directors proposed to the extraordinary shareholders meeting to approve 30 December 2019 as the date on which persons entitled to receive the dividends based on the 9 months 2019 results shall be identified.

In connection with the Board of Directors decision the General Director of PJSC Tatneft Nail Maganov said: "The management's key task is to procure high total shareholder return which is achieved through maximizing the effectiveness of existing assets, value accretive investment projects and the return in the form of dividends of cash accumulated following the fulfilment of all obligations, including social, and the financing of capital expenditures. To fulfil this task we implement a set of measures including in the areas of working capital management, production and business support processes optimization, introduction of new IT solutions, increasing the return on each invested Ruble and decreasing costs. On the back of favourable credit market conditions and our low gearing ratio, the Company expands the use of debt instruments to finance its projects. All this supports the increase in cash flow towards the dividend payments. Therefore, based on our current expectations, the total dividends which the management would be able to propose to the Board of Directors for recommending to the shareholders for approval in June of next year would be not lower than the level for 2018, and this amount of distributions would remain as a benchmark for us for the purposes of determining the dividends in 2020."

The extraordinary shareholders meeting will be held on 19 December 2019 by proxy voting. The list of persons entitled to participate in the extraordinary shareholders meeting will be set as of 24 November 2019.

This press-release contains inside information.

Forward-looking statements and waiver of liability: This press release contains statements about future events and expectations that are forward-looking in nature. Any statement in this press release 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 actual results, performance or achievements expressed or implied by such forward-looking statements to differ. PJSC Tatneft assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. The amounts and percentages mentioned or referred to in this press release could be presented after rounding and, therefore, they might differ from the actual sums and results contained in the Company's reporting documents. PJSC Tatneft shall bear no responsibility to correct or reimburse any sums which might constitute the difference between the amounts mentioned in this press release and those in respective reporting documents, and all payments are made by PJSC Tatneft exclusively on the basis of decisions made by its authorised corporate bodies in the amounts and within the corporate proceedings set out in such decisions.