Tatneft' : TATNEFT‘s Board of Directors of Discussed Prospects for the Tire Manufacturing Business Development

A regular meeting of the TATNEFT's Board of Directors chaired by R.N. Minnikhanov, President of the Republic of Tatarstan, was held in Kazan (Republic of Tatarstan) on September 28, 2017.

The meeting considered the results of executing the Company's budget for eight months of 2017 and approved the budgets for October and the fourth quarter of the current year.

The Board of Directors heard information on the results of financial and economic activities and prospects for the development of enterprises of the petrochemical unit. According to the Strategy of tire manufacturing business development, the volume of tire sales by 2025 shall reach the level of 16.2 million tires, while the EBITDA will reach a fivefold increase to RUB 14.5 billion in 2025.

The main activities for achieving the set goals include: implementation of the long-term program for the expanding 'Viatti' and SSC tire product line, expansion of the material and technical base of the STC 'Kama', optimization of production processes, import substitution, development of the sales system, expansion of the network of retail trade and service centers 'Tyre & Service'.

During the meeting, the information was discussed about the Company's innovative (technological) development strategy. The system of creating the TATNEFT's intellectual values had been built at the Company: starting with the idea origination and ending with its introduction into production, obtaining document of title and commercialization. Currently, the Company continued the activities on debugging and increasing the effectiveness of the innovation management system, filling up the portfolio of innovative technologies.

The Board of Directors also considered a number of other issues related to the activities of TATNEFT.

Forward-looking statements: These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials 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.