Board of Directors of NIS Adopts the Annual Report on the

March 30, 2015

Despite the drastic decrease in the prices of crude oil on the world market the EBITDA indicator had a drop of only 8%, amounting to 63.4 billion dinars. Net profits were up to 27.8 billion dinars, which makes 42% in comparison to 2013. In 2014 capital investments of NIS group reached 39.4 billion dinars, which is 29% less, while the value of direct and indirect taxes reached 136.2 billion dinars, which is 13% more than in 2013. Measures to increase business efficiency and consistent implementation of the cost reduction program led to a positive effect of 8.3 billion dinars. Commenting on the results of NIS in 2014, the President of the Board of Directors, Vadim Yakovlev, said: "Gazprom Neft found its way to overcome the current crisis in reliance on internal resources and in the increase of business efficiency. In the same way the NIS, as part of the group, has managed to mitigate the negative macroeconomic trends. Such a concept of operations enabled NIS to remain a profitable company, creating conditions for the company to continue a stable development. I want to emphasize that this is all possible due to the understanding and good cooperation between both of our shareholders – the Gazprom Neft and the Government of Serbia.