2012 ANNUAL REPORT - GAZPROM Germania · 1,394.7 3,298.8 170.7 29.9 2,013.0 1,945.0 898.9 2,920.6 370.3 33.8 PUBLisHER gAZPROM germania gmbH EdiTiNg ANd cOORdiNATiON susanne fleischer,

www.gazprom-germania.de

2012ANNUAL REPORTENERgy UNiTEs PEOPLE

gAZPROM germania gmbH | Markgrafenstraße 23 | 10117 [email protected] | www.gazprom-germania.de

ENERgy UNiTEs PEOPLE

2012

AN

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EPO

RT

EN

ERgy

UN

iTEs

PEO

PLE

35

17%TM3

Of gLOBAL gAs REsERvEs

gAZPROM HAs NATURAL gAs REsERvEs Of MORE THAN 35 TM3 – THE LARgEsT iN THE wORLd. iN 2012, wE ExPORTEd 138 gM3 Of NATURAL gAs TO EUROPE – AROUNd 25 %

Of EUROPE’s TOTAL NATURAL gAs cONsUMPTiON.

EqUiTy (mEUR)

PROvisiONs (mEUR)

LiABiLiTiEs (mEUR)

NON-cURRENT AssETs (mEUR)

fiNANciAL AssETs (mEUR)

cURRENT AssETs (mEUR)

TOTAL AssETs (mEUR)

PROfiT fOR THE yEAR (mEUR)

gAs sALEs (Twh)

2010 2011 2012

gAZPROM gERMANiAgMBH

— 2012 ANNUAL REPORT

2,095.1

17.4

1,919.9

2,190.8

19.3

1,064.0

2,416.8

24.8

456.3

1,790.4

1,699.0

2,275.6

4,067.0

280.9

387.7

1,883.3

1,811.9

1,394.7

3,298.8

170.7

29.9

2,013.0

1,945.0

898.9

2,920.6

370.3

33.8

PUBLisHER

gAZPROM germania gmbH

EdiTiNg ANd cOORdiNATiON

susanne fleischer,Mirco Hillmann, Nils Möller

cONcEPT ANd dEsigN

PBL Milk gmbH

PROdUcTiON

Reiher grafikdesign & druck e. Kfr.

PHOTO cREdiTs

cathrin Bach – 010Tobias Bohn – 006 / 009

firo sportphoto – 012Hans-Joerg Haas – 014

steffen Jagenburg – 005 (2)dana Manthe – 005 (1)

Nord stream Ag – 003 / 039 / 041shutterstock – 045

AvAiLABLE AT

gAZPROM germania gmbHMarkgrafenstr. 23

10117 Berlin

T +49 30 20195 152f +49 30 20195 135

[email protected]

cONTAcT

corporate communicationssusanne fleischer,

Mirco Hillmann, Nils Möller

EqUiTy (mEUR)

PROvisiONs (mEUR)

LiABiLiTiEs (mEUR)




TOTAL AssETs (mEUR)


gAs sALEs (Twh)

2010 2011 2012



2,095.1

17.4

1,919.9

2,190.8

19.3

1,064.0

2,416.8

24.8

456.3

1,790.4

1,699.0

2,275.6

4,067.0

280.9

387.7

1,883.3

1,811.9

1,394.7

3,298.8

170.7

29.9

2,013.0

1,945.0

898.9

2,920.6

370.3

33.8

PUBLisHER




cONcEPT ANd dEsigN

PBL Milk gmbH

PROdUcTiON


PHOTO cREdiTs





AvAiLABLE AT


10117 Berlin

T +49 30 20195 152f +49 30 20195 135

[email protected]

cONTAcT







2012

AN

NU

AL R

EPO

RT

EN

ERgy

UN

iTEs

PEO

PLE

35

17%TM3





AT GAZPROM GERMANiA, wE ARE cONviNcEd ThAT NATURAL GAs sTiLL hAs AN iMPORTANT ROLE TO PLAy – bOTh As AN ENERGy sOURcE fOR ThE fUTURE ANd A RELiAbLE PARTNER fOR RENEwAbLE ENERGy.

01 ENERGy UNiTEs PEOPLE 003

02 MANAGEMENT REPORT 017

Economic and regulatory conditions 020

business performance and projects 024

income, net assets, and financing 028

Non-financial performance indicators 030

Risk report 034

forecast 038

03 bALANcE shEET 039

04 iNcOME sTATEMENT 041

05 NOTEs TO ThE ANNUAL fiNANciAL sTATEMENTs 043

General notes 044

Accounting policies 046

foreign currency translation 048

deferred taxes 050

Notes to the balance sheet 052

Notes to the income statement 060

Other notes 064

06 AUdiTOR’s REPORT 069


cONTENTs

cONTENTsGAZPROM GERMANiA GMbh

ENERGyUNiTEs PEOPLE

— GAZPROM GERMANiA GMbh

ANNUAL REPORT2012

ENERGy UNiTEs PEOPLE

01

GAZPROM GERMANiA GMbh

003

ANNUAL REPORT2012


ThE MORE MARkETs chANGE, ThE MORE iMPORTANT iT is TO hAvE sOMEThiNG TO RELy ON: NATURAL GAs ENsUREs A sEcURE ENERGy sUPPLy TOdAy ANd fOR ThE fUTURE. As A NATURAL ANd RELiAbLE PARTNER fOR GERMANy ANd EUROPE, wE ARE REAdy TO UNiTE PEOPLE wiTh OUR ENERGy.

— fOREwORd

despite difficult conditions, the 2012 financial year was a success-ful one for GAZPROM Germania. we increased our revenue 27 % to EUR 12,487.7 million.

while this is a very positive development, it cannot hide the fact that our industry is currently going through a period of radical change. Our mar-ket environment continues to be dynamic and is heavily influenced by numerous financial and political challenges.

we are constantly looking at how, where, and to what extent events such as the recent turnaround in German energy policy might affect our business. This change in policy calls for a fundamental restructuring of the energy systems that are currently in place. Our industry continues to be characterized by strong competition, and the oversupply of natural gas has energized global markets. we have been quick to react to these changes and, in the interest of our customers, we have created new types of contracts and adjusted prices.

Providing Europe with a secure, cost-effective, and environmentally friendly supply of energy remains one of the greatest challenges of this century. Natural gas is set to play a key role in the global trend towards renew able energy. Even if there are rapid developments in wind, solar, and biogas technologies, it will not be possible to meet energy demands

without the help of natural gas in the foreseeable future. both in the short and long term, natural gas is the ideal energy source to ensure the secure supply of energy to Germany and the rest of Europe while work continues to be done on expanding renewable forms of energy.

At GAZPROM Germania, we invest in and apply our expertise towards making natural gas a viable part of restructuring the energy supply – and our endeavours are as consistent and reliable as our natural gas. in addition to this, we are also dedicated to honouring our social com-mitments – we are currently running a variety of programmes under the “energy unites people” slogan to help promote an intercultural dialogue between Germany and Russia.

As a German company with Russian roots, we’re putting all our energy into ensuring GAZPROM’s continued success this financial year.

vyAchEsLAv kRUPENkOv senior Managing director

ANdREy biRyULiNManaging director

”

“


004

fOREwORd GAZPROM GERMANiA GMbh


PARTNERshiP UNiTEs PEOPLEENERGy is sOMEThiNG wE cAN’T LivE wiThOUT. OUR MOdERN wAy Of LifE wOULdN’T wORk wiThOUT iT. GAZPROM ExPLOREs, PROdUcEs, sTOREs, ANd sUPPLiEs RUssiAN NATURAL GAs TO GERMANy ANd EUROPE.

GAZPROM is one of the world’s largest producers and exporters of natural gas. in 2012, we produced 488 Gm3 of natural gas and supplied 138 Gm3 to the European Union – around a quarter of Europe’s total consumption. be it exploration, production, transportation, storage, or supply: GAZPROM stands for secure, sustainable natural gas supply now and in the future. we value reliability, responsibility, and trust, and we unite people by sponsoring social, sporting, and cultural activities.

ANNUAL REPORT2012

ENERGy UNiTEs PEOPLEGAZPROM GERMANiA GMbh

006

PARTNERshiP UNiTEs PEOPLE GAZPROM GERMANiA GMbh

ANNUAL REPORT2012

TM3

REsOURcEs: 351 TM3

REsERvEs: 192 TM3

PROdUcTiON 2010: 3.2 TM3

sOURcE: bP sTATisTicAL REviEw Of wORLd ENERGy 2012

TOTAL NATURAL GAs REsERvEs

by REGiON

16.8AsiA-PAcific

74.6RUssiA/cis

80.0MiddLE EAsT

10.8NORTh AMERicA

7.6sOUTh ANd cENTRAL AMERicA

14.5AfRicA

4.1EUROPE

EnErgy unitEs pEoplEGAZPROM GERMANiA GMbh

008

ANNUAL REPORT2012

%

*PROvisiONAL, iNcLUdEs EsTiMATEs

sOURcE: GERMAN ENERGy ANd wATER AssOciATiON (bdEw), dEcEMbER 2012

11.0GERMANy

34.0RUssiA

20.0ThE NEThERLANds

23.0NORwAy

12.0dENMARk, Uk,

ELsEwhERE

NATURAL GAs sUPPLiEs TO GERMANy

by cOUNTRy Of ORiGiN*

Natural gas: a Natural resource GAZPROM GERMANiA GMbh

009

ANNUAL REPORT2012


010

bERLiNdEUTschE OPER

GERMANy

wE PROvidE A sEcURE ANd RELiAbLE sUPPLy Of RUssiAN NATURAL GAs TO ThE whOLE Of EUROPE. bUT wE ALsO hELP ThE wORLd-fAMOUs MARiiNsky ThEATRE fROM sT PETERsbURG cAsT ThEiR cAPTivATiNG sPELL OvER AUdiENcEs iN bERLiN.

— cULTURAL cOMMiTMENT

by sponsoring cultural exchange, GAZPROM Germania is helping to strengthen the friendship between Germany and Russia. Giving Russian artists the chance to perform in Germany is just as much a part of our corporate philosophy as ensuring the sustainable supply of natural gas to Germany and the rest of Europe. culture is something we care about: we have long provided sponsorship to events such as the German-Russian festival and Russian film week in berlin.

by working to guarantee the secure supply of natural gas in the long term, we are offering both economy and sustainability for German and European energy. This is more than a guest performance: This is commitment.

PAssiON UNiTEs PEOPLE

ANNUAL REPORT2012

PAssiON UNiTEs PEOPLE GAZPROM GERMANiA GMbh

011

ANNUAL REPORT2012


012

GELsENkiRchENschALkE ARENA

GERMANy

— sPORT ENGAGEMENT

TEAM sPiRiT UNiTEs PEOPLE

Today, natural gas is used everywhere – in the household, commercially, industrially, and even at football stadiums.

with their sponsorship of fc schalke 04, GAZPROM Germania not only supports the eleven players on the pitch, but also works with the club away from the playing field to campaign against social exclusion and promote fair play and team spirit. As a global energy company, GAZPROM has a great responsibility towards future genera-tions – a responsibility that lasts longer than just 90 minutes.

we support a number of social projects in collaboration with schalke. for example, we pay tribute to those who do volunteer work in the community with the “weil du es verdient hast!” initiative, and promote the prevention of violence in football with our long-standing “Gib Gas gegen Gewalt” friendly matches.

but it is not only at schalke that GAZPROM Germania leads the way: with modern technology and a shared commitment, we are working to ensure that we can meet Europe’s everyday natural gas demand while provi-ding access to valuable resources for the future.

whiLE fc schALkE fANs cELEbRATE ThEiR LATEsT wiNNiNG bUNdEs LiGA GOAL, wE’RE 2,000 kM fURThER EAsT, wORkiNG TO ENsURE ThAT ThE fANs wATchiNG AT hOME ARE cOsy ANd wARM.

ANNUAL REPORT2012

TEAM sPiRiT UNiTEs PEOPLE GAZPROM GERMANiA GMbh

013

ANNUAL REPORT2012


014

RUsTEUROPA-PARk

GERMANy

whiLE fAMiLiEs fROM ALL OvER GERMANy TRAvEL TO EUROPA- PARk iN RUsT TO ExPERiENcE A sPEciAL dAy OUT TOGEThER, wE’RE wORkiNG TO iMPROvE ENviRONMENTALLy-fRiENdLy MObiLiTy iN GERMANy ANd ThROUGhOUT EUROPE. NATURAL GAs cOMbiNEs EcO-fRiENdLiNEss wiTh cOsT-EfficiENcy ANd sAvEs MOTORisTs MONEy EvERy TiME ThEy fiLL UP.

— sOciAL cOMMiTMENT

REsPONsibiLiTy UNiTEs PEOPLE

As partner to Germany’s largest theme park, GAZPROM Germania makes natural gas and its versatile poten-tial come to life – from the catapult rollercoaster with the highest loop in Europe to the GAZPROM interactive Experience Energy attraction. since 2009, GAZPROM Germania has been a premium partner to Europa-Park in Rust, near freiburg, and is the named sponsor of the “blue fire Megacoaster powered by GAZPROM”, a cata pult roller coaster. GAZPROM opened its Experience Energy attraction at Europa-Park in March 2010. This was then com prehensively renovated and expanded in 2012. New game stations give visitors wide-ranging insights into the diverse applications and transportation of natural gas.

Environmental issues and changes in energy policy call for new ways of thinking and the practical combi-nation of natural gas and renewable sources of energy. GAZPROM Germania shows innovation not just at Europa-Park, but also puts their ideas into practice on the streets of Europe.

ANNUAL REPORT2012

REsPONsibiLiTy UNiTEs PEOPLE GAZPROM GERMANiA GMbh

015


ANNUAL REPORT2012


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02


MANAGEMENTREPORT

ANNUAL REPORT2012

MANAGEMENT REPORT GAZPROM GERMANiA GMbh

017

2010 2011 2012

1,88

3M

iLLi

ON

EUR1,79

0M

iLLi

ON

EUR

EUR 2,01

3M

iLLi

ON

AssetsGazprom Germania GmBh

Key FiguresANNUAL REPORT2012

MANAGEMENT REPORTGAZPROM GERMANiA GMbh

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GAZPROM GERMANiA GMbh, bERLiN (GERMANy), (GPG) wAs fOUNdEd iN bERLiN iN 1990 As A GERMANsUbsidiARy Of GAZPROM ExPORT, sT. PETERsbURG (RUssiA), (GAZPROM ExPORT), A LiMiTEd-LiAbiLiTy cOMPANy UNdER RUssiAN LAw, As PART Of ThE GROUP Of cOMPANiEs LEd by MOscOw-bAsEd GAZPROM, MOscOw (RUssiA), (GAZPROM), A LisTEd,OPEN jOiNT-sTOck cOMPANy UNdER RUssiAN LAw,fOR ThE PURPOsE Of MARkETiNG RUssiAN GAs iN GERMANy ANd wEsTERN EUROPE.

siNcE iTs EsTAbLishMENT, GPG hAs dEvELOPEd iNTO AN iNTERNATiONALLy OPERATiNG GROUP Of cOMPANiEs. GPG’s MAiN fiELds Of bUsiNEss iNcLUdE ThE TRAdiNG ANd sTORAGE Of NATURAL GAs. iTs GROUP cOMPRisEs AROUNd 40 cOMPANiEs OPERATiNG iN MORE ThAN 20 cOUNTRiEs iN EUROPE, AsiA ANd ThE UNiTEd sTATEs. GPG ANd iTs sUbsidiARiEs (GPG GROUP) sAfEGUARd GAZPROM’s kEy cOMMERciAL iNTEREsTs iN ThE EUROPEAN, AsiAN, ANd NORTh AMERicAN MARkETs.

— MANAGEMENT REPORT

ANNUAL REPORT2012

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GENERAL EcONOMic cONdiTiONs

The global economy grew more slowly than expected in 2012, and growth forecasts were revised down around the world. in light of the European debt crisis and declining global economy, the OEcd estimates 2012 growth in OEcd countries at 1.4 %. Global economic growth continues to be marred by uncertainty. Overall, we can expect the global economy to recover slightly, but slowly and with considerable differen-ces between individual countries and regions.

Economic development in Europe remained restrained in 2012. how-ever, slight growth is expected for 2013: The European commission forecasts GdP growth of 0.4 % in the European Union and 0.1 % in the eurozone. This slow rate of growth Europe-wide is attributable to highunemployment and poor domestic demand in some countries and stark differences in growth rates between individual EU member states. The German federal government projects German growth of 0.8 % for 2012 and 0.4 % for 2013, increasing to 1.6 % in 2014.

Turkey, shows huge growth potential; its annual growth rates of almost 10 % in recent years and current and forecasted growth rates of 3 – 4 % place it at the top of the list of the world‘s fastest-growing economies.

EUROPEAN MARkET cONdiTiONs

The European energy market has undergone swift and lasting change in recent years, forcing all market actors to adjust to a number of new legal requirements. if nothing else, Germany’s turnaround in energy

policy – which aims to significantly increase the focus on renewableenergies and energy efficiency – has made it necessary to radically overhaul systems that have been used and proven for several decades.

in EU countries, natural gas consumption in 2012 was an estimated 459 Gm3, its lowest in 10 years; this figure was 1.3 % down on 2011 and 12 % down on 2010. Given the slowing global economy, we cannot expect demand on European energy markets to increase significantly in the coming years.

Lower demand for gas revealed itself mainly through lower LNG imports; these fell around 25 % during the reporting period compared to the same period the previous year. in terms of pipeline imports to Europe, Norway was able to expand its market share from around 26 % to 32 %; imports from Russia declined, but retained their market share of around 40 %. Natural gas production in EU countries had reached 2011 quantities in just the first 10 months of 2012, but with one important exception: the United kingdom, where year-on-year natural gas production fell almost 15 %.

despite falling demand, both hub prices and import prices for natural gas increased. The average spot price on the Title Transfer facility (TTf), continental Europe’s most important virtual trading hub, was EUR 25.00 per Mwh in 2012, a 10 % increase on 2011’s average of EUR 22.60 per Mwh. Market expectations for the coming year (gas forwards to be fulfilled in 2013) were EUR 26.70 per Mwh at the end of 2012, just above the level seen the previous year (+0.2 %).


EcONOMic ANd REGULATORycONdiTiONs

ANNUAL REPORT2012


020

370.32012

170.7 2011

Net iNcome for the yearGazprom Germania GmBh

Key figures ANNUAL REPORT2012

EcONOMic ANd REGULATORy cONdiTiONs

EUR

EUR

Million

Million


021

data from the German federal Office of Economics and Export control (bAfA) shows average import prices for 2012 were EUR 29.3 per Mwh – an increase that is proportionally similar to that of hub prices, this data is representative for all imports to continental Europe. According to the German Energy and water Association (bdEw), the use of natural gas for electricity generation in Germany fell an estimated 17 % when compared to the previous year. The use of coal instead of natural gas has become more attractive in Europe since summer 2011, driven by falling carbon certificate prices. however, natural gas will likely sup plant coal in the long term – at least in part – due to environmental regula-tions.

increased competition from shale gas and LNG set the European energy market in motion. Natural gas again became an attractive fuel for electricity generation as a result of falling wholesale prices in North America. This led to increased exports of excess coal, particularly to Europe. After increasing 33 % in 2011 compared to the previous year, coal imports to western Europe climbed an additional 16 % in 2012. 2012 saw agreements reached on gas import pricing. These included agreements between GAZPROM and several European partners such as E.ON, ENi, and Econgas. however, the backbone of the business will continue to be longterm contracts – the only model that gives GAZPROM sufficient planning security to make billion-strong invest-ments in infrastructure for production and transport while guaran-teeing security-of-supply to European importers.

ENERGy POLicy ANd REGULATORy ENviRONMENT

— EUROPEThe discourse surrounding energy policy focused on the German fe-deral government’s changes to its energy policy, which now requires a radical overhaul of systems that have been used and proven for several decades. virtually no other topic has been the subject of such cont-roversy in Germany and throughout Europe. Many questions remain unanswered, including the issue of how to coordinate the overhaul and how to share the cost.

The European commission’s Energy Roadmap 2050 takes a contras-ting approach, and describes the fundamental transformation of the European energy system with the goal of reducing greenhouse emissi-ons by between 80 % and 95 % by 2050 while ensuring secure energy supply and affordable energy prices.

The European commission’s plan to transform the energy sector has a different focus than Germany’s energy policy: The EU approach is technology-independent and calls for closer integration of the EU’s

common energy market. Renewable energies alone cannot meet Germany’s and Europe’s energy requirements; despite the fast pace of their expansion, wind, solar, and biogas will not be able to meet demand without natural gas for the foreseeable future. in september 2012, the European commission launched an antitrust investigation to determine whether GAZPROM is hindering competition in central and Eastern European markets in violation of EU antitrust law. GAZPROM expects that the investigation will determine that its actions reflect practices common to the gas industry and all other companies within it, and, therefore, that no infringements will be established.

— GERMANyUnder the German federal government’s energy plans, greenhouse emissions are to be reduced by 40 % by 2020 and by 80 % by 2050. The proportion of renewable energy is to increase steadily to become the most important source of energy in Germany’s energy portfolio, reaching 10 % of all final energy by 2010 and 60 % by 2050. The proportion of primary energy used in electricity generation is set to be 80 % renewable by 2050; according to preliminary data from the bdEw, this figure is currently around 22 % of gross electricity generation.

Natural gas plays an indispensable role in achieving these climate goals. As the cleanest fossil energy carrier, natural gas is the perfect complement to renewable energy and acts to bridge the two systems by offering huge versatility; it can be used as a means of storing energy or as a fuel for electricity generation. for example, the gas network can be used to help stabilize the electricity network by facilitating the use of all regenerative electricity generated. Power-to-gas technology enables the use of existing gas infrastructure, offering great opportunity to harness the ecologically and financially sound combination of planable, secure natural gas from volatile, regenerative electricity generation.

Therefore, natural gas has a vital role to play in transforming energy supply as a direct source of heat, but also as an indirect fuel for transport, a means of energy storage, and an energy system enabler. furthermore, replacing coal-fired power plants with gas-fired power plants significantly reduces cO2 emissions in a short time. Gas-fired power stations produce fewer emissions than brown or black-coal po-wer stations, and their production can be ramped up or down quickly depending on how much solar or wind power is being produced. but while government policy propagates the necessity of gas-fired power stations, the natural gas industry does not consider it to have created sufficient investment impetus.

MANAGEMENT REPORT

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Germany’s political landscape has supplied no clear position on the production of shale gas by means of hydraulic fracturing. while refe-rence is made to positive gas-price developments in the United states following the shale-gas boom, equal mention is given to the environ-mental risks of producing natural gas using hydraulic fracturing. Eco-nomic pressure remains high, especially considering other European countries such as Poland and the United kingdom are expediting their exploration and potential commercial production of shale gas.

EcONOMic ANd REGULATORy cONdiTiONs

ANNUAL REPORT2012


023

GPG’s focus during the reporting period was again its holding function for subsidiaries and investments.

GPG recorded a profit for the year of EUR 370.3 million for 2012, signi-ficantly exceeding the previous year’s profit of EUR 170.7 mil lion and returning to around the level achieved in 2010. This is largely attributable to the EUR 158.3 million (Usd 200.0 million) dividend GPG received from GAZPROM schweiz AG, Zurich (switzerland), (GPch), during the reporting period.

The 2012 EbiT of EUR 408.4 million was also significantly up on the previous year’s figure of EUR 184.8 million. GPG trades natural gas in close cooperation with its parent company, Gazprom export. in the 2012 financial year, the natural gas traded was primarily kazakh in origin.

This financial year, GPG paid gross dividends of EUR 144.2 million to its parent company Gazprom export (previous year: EUR 409.7 million).

Through its diverse range of sponsorship activities in arts and culture, youth and education, healthcare and social welfare, and sports, GPG works to increase awareness of the GAZPROM brand and strengthen its image and reputation in Germany and throughout Europe.

OPERATiNG AcTiviTiEs

GPG mainly trades in kazakh natural gas purchased from kazRosGaz and delivered to Gazprom export. it traded more than 3.3 Gm3 of nat-ural gas in 2012 (previous year: 2.9 Gm3). The increased revenue and

increased procurement costs are attributable to the larger quantities traded compared to the previous year.

GPG’s 2012 storage activities focused on Germany and Austria. in Austria, GPG operates and markets the haidach natural gas storage facility in collaboration with three partner companies. The haidach natural gas storage facility has a working gas volume of 2.6 Gm3, making it the largest such facility in Austria and the second-largest storage facility in western Europe. The facility became operational in April 2011, and in 2012, planning commenced on connecting its storage capacity to the Austrian long-distance transmission network.

GPG continued its evaluation of geological storage structures in north- east Germany in 2012. Geological-technical assessment and planning was undertaken at selected potential sites in close cooperation with Gazprom vNiiGAZ along with analytical work on which to base esti-mates of storage requirements.

GPG was able to significantly expand its presence on the German natural-gas-for-transport market by launching a variety of innovative technologies. Together with its partner companies, GPG’s efforts have furthered a number of projects enabling the clean and efficient use of natural gas as a motor fuel. GPG runs six natural gas filling stations around Germany. GPG plans to construct a total of 15 natural gas filling stations by the end of 2014. in the czech Republic and slovakia, GPG is expanding its offering in collaboration with its subsidiary vEMEx s. r. o., Prague (czech Republic) and will increase the number of filling stations to up to 15 by the end of 2014.

bUsiNEss PERfORMANcEANd PROjEcTs


ANNUAL REPORT2012


024

Ebit

2010 2011 2012


Key Figures

334.

9 M

illi

on

Eur

408.

4M

illi

on

Eur

184.

8M

illi

on

Eur

ANNUAL REPORT2012

bUsiNEss PERfORMANcE ANd PROjEcTs GAZPROM GERMANiA GMbh

025

GPG is involved in developing infrastructure for transporting small quantities of LNG (smallscale LNG). This is aimed at establishing LNG as a viable alternative fuel for transport. GPG is also testing LNG-fuelled busses together with a number of international partners.

GPG is an active participant in the development of a variety of electricity generation projects using existing gas-fired power stations and projects for the construction of newer, more modern combined-cycle power stations; it conducts these activities in collaboration with GAZPROM, Gazprom export, and Gazprom Marketing & Trading Ltd, London (GM&T).

fiNANciNG AcTiviTiEs

GPG meets its long-term finance requirements with a balanced debt- to-equity ratio, ensuring both financial stability and sufficient flexibility.

The most important source of finance is generally cash inflow from operating activities and dividends received. debt financing is obtained from a variety of independent finance sources, including committed bilateral credit facilities, promissory note loans, and structured finance. The GPG Group’s excess liquidity is pooled centrally under a cash- pooling agreement and either made available for operating activities as required or invested on the capital market under consideration of profit and risk criteria. The cash pool was expanded during the report-ing period to include subsidiary vEMEx s. r. o.

in december 2012, GPG paid back the third tranche of its promissory note loan (EUR 224.5 million) as scheduled. GPG’s experience with this financial instrument has been positive, and it is likely that GPG will again turn to the capital market to cover any financing requirements it may have in the future. GPG also paid back the project investment loans that were due in October on schedule. Therefore, the only outstand-ing debt financing GPG had as of the balance sheet date were loans of EUR 25.5 million against promissory notes.

GPG’s finance strategy also incorporates a five-year syndicated credit facility of EUR 500 million signed in March 2011. This credit facility provides a secure, long-term liquidity reserve. however, no borrowings had been conducted under this credit facility as of the balance sheet date. GPG has also supplied and extended letters of credit and guarantees in order to support the business operations of its subsidiaries.

iNvEsTMENT AcTiviTiEs

GPG invested EUR 162.2 million in the 2012 financial year (previous year: EUR 164.7 million).

The largest portion of this involved capital measures at subsidiaries and investments, particularly at bosphorus Gaz corporation A. s. (bGc), istanbul (Turkey) and south stream Transport b. v., Amster-dam (The Netherlands), (ssT b. v.).

sUbsidiARiEs ANd iNvEsTMENTs

— NATURAL GAs TRAdiNGGPch, the subsidiary responsible for purchasing central Asian natural gas, recorded sales of around 32.7 Tm3 and revenues of Usd 9.9 billion in 2012. GPch recorded a profit for the year of Usd 49.6 million (EUR 38.6 million) compared to Usd 51.3 million (EUR 36.9 million) the previous year.

After being transported through Uzbekistan, kazakhstan, Russia, and belarus, this natural gas is usually sold to Gazprom export at the border to the destination country in question. Uzbek natural gas is also sup-plied to southern regions of kazakhstan as part of a swap transaction. Alongside its continued gas deliveries to serbia and Macedonia, GPch also entered into new sales markets in south-eastern Europe.

despite a difficult market and regulatory environment, GM&T sig-nificantly increased its earnings in 2012. Revenue grew significantly to GbP 3,015.0 million (previous year: GbP 2,213.1 million) and net income to EUR 178.1 million (GbP 144.2 million), up from EUR 96.2 million (GPb 83.5 million) the previous year. GM&T paid GPG a dividend of EUR 131.3 million during the reporting period (previous year: EUR 69.3 million).

Net income from German investments w & G beteiligungs- Gmbh & co. kG, kassel (Germany), (w & G) – formerly wiNGAs GmbH & Co. KG – and Wintershall Erdgas Handelshaus GmbH & Cо. KG, kassel (Germany), (wiEh) was EUR 201.0 million, 13.7% above the result from the previous year (EUR 176.7 million). The w & G subgroup was restructured in 2012 in response to unbundling requirements under applicable German and European energy policy. The task of managing and financing w & G subgroup companies has been assumed by w & G, and the sales business by the new company wiNGAs Gmbh, kassel (Germany), (wiNGAs). Astora Gmbh & co. kG, kassel (Ger-many) is now responsible for marketing storage capacity. Natural gas transportation activities were transferred to GAscAdE Gastransport Gmbh, kassel (Germany) NEL Transport Gmbh, kassel (Germany) and OPAL Transport Gmbh & co. kG, kassel (Germany).

The difficult 2011 financial year did not allow for vNG-verbundnetz Gas AG, Leipzig (Germany) to pay a dividend in 2012 (previous year: EUR 5.3 million). however, it was able to considerably improve its income during the 2012 reporting period.

ANNUAL REPORT2012

MANAGEMENT REPORTGazprom Germania GmBh

026

As part of the GAZPROM Group’s efforts to enter the italian end- customer market and optimize its activities in italy, PremiumGas s. p. A., bergamo (italia), commenced its operations on the italian natural gas market on 1 October 2008. PremiumGas paid GPG a dividend of EUR 2.5 million during the reporting period.

specific value adjustments were made to both the carrying amount for and receivables from vEMEx s. r. o., Prague, due to considerably lower margin expectations for gas sales on the czech market.

in Turkey, bGc has operated under particularly difficult circumstances since 2009. bGc underwent a restructuring programme that allowed it to considerably reduce its losses during the reporting period com-pared to the same period the previous year. in 2012, bGc concluded agreements with Gazprom export on the delivery of additional natural gas quantities from 2013 onwards. bGc imports around 3.3 Gm3 of natural gas a year, making it the largest privately-held importer of natural gas to Turkey and second only to state-owned bOTAs. in its efforts to diversify its business activities, bGc also received a license from regulatory authority EMRA to trade electricity and LNG on the spot market. in May 2012, the process of transferring 20 % of shares in bGc to GPG was completed. GPG how holds a 71 % share in bGc.

— NATURAL GAs sTORAGE2012 saw GPG continue to invest in expanding its infrastructure and exploring potential natural gas storage sites in Germany and Europe. As regards the south stream pipeline, the banatski dvor underground storage facility was constructed in 2012 in northern serbia with a working gas volume of 450 Mm3. This project is oper-ated by the Podzemno skladište gasa banatski dvor d. o. o., Novi sad (serbia), a 51 – 49 % joint venture between GPG and the stateowned serbian company jP srbijagas, Novi sad (serbia).

GPG is involved in the development of a cavern storage facility in Northern Germany through its shareholding in Etzel-kavernenbe-triebsgesellschaft mbh & co. kG, hamburg (Germany), and bunde- Etzel-Pipelinegesellschaft mbh & co. kG, hamburg (Germany). This facility is located 30 km south of wilhelmshaven and is connected by pipeline to the gas grid operated by the dutch Gas Transport service b. v. (GTs) and the Norddeutsche Erdgas-Transversale (NETRA), giving it high-capacity access to Europe’s major natural gas trading hubs. The Etzel facility allows working gas to be trans-shipped repeat-edly, thereby providing the flexibility demanded by the market. The storage facility will have a working gas volume of 690 Mm3 and will be put into operation in early 2013 following construction and facility testing.

GPG is constructing a natural gas storage facility, katharina, in coop-eration with vNG Gasspeicher Gmbh, Leipzig (Germany). This cavern storage facility is being planned, developed, and operated by Erdgas-speicher Peissen Gmbh, a joint venture. The storage facility currently comprises two caverns, but will be expanded stage-by- stage and ultimately have a working gas volume of around 600 Mm3 by 2026.

in response to the potentially high demand for natural gas storage in Turkey caused by the liberalization of the natural gas market and the low working gas volume currently available, GPG is investigating the realization of the Tarsus storage facility.

To ensure that delivery obligations to central European customers can be met, GPG intends to convert the former damborice oil field in the czech Republic into a natural gas storage facility in collaboration with MNd drilling services A. s. The first storage capacity is expected to be available in 2014.

— NATURAL GAs PROdUcTiONGPG’s 2012 exploration and production activities centred on central Asia. in Uzbekistan, GPG operates through its investment in projects managed by Gas Project development central Asia AG, baar (switzer-land), (G. P. d.), a joint-venture in which it has a 50 % shareholding.

2012 also saw GPG sell its 20 % shareholding in the wiNGATE natural gas production project in the british North sea to Gazprom international Uk Limited, London (Great britain).

ANNUAL REPORT2012

bUsiNEss PERfORMANcE ANd PROjEcTs Gazprom Germania GmBh

027

iNcOME, NET AssETs, ANd fiNANciNG


GPG’s business activities focus primarily on ensuring sustainable growth in the value of the GAZPROM Group. The value of GPG and its companies is measured and managed using an extensive system of strategic indicators, of which the primary indicator is profit for the year. Other indicators are used depending on the type of business, for example EbiTdA, ROcE, and gross margin (the difference between purchasing and sales prices less storage, transport, and other directly attributable costs).

iNcOME

Revenue for the financial year was EUR 647.0 million, falling short of the EUR 1,255.9 million recorded the previous year. This corresponds to total gas sales of 3.3 Gm3 or 33.8 Twh (previous year: 2.9 Gm3 or 29.9 Twh). The revenue posted the previous year included EUR 729.6 million in revenue from natural gas transportation that was paid to GPch; following the restructuring of sales channels 2012, GAZPROM paid this revenue directly to GPch. Natural gas sales revenue therefore increased during the reporting period (previous year: EUR 526.3 million) due to increased sales quantities. The result from ordinary activities for the reporting period was EUR 404.7 million, up from EUR 189.7 million the previous year.

Profit for the year was most significantly influenced by net income from investments of EUR 493.1 million (previous year: EUR 251.3 million). wiNGAs and wiEh, which GPG run as joint ventures with wintershall, together paid GPG EUR 201.0 million during the reporting period under profit transfer agreements, exceeding the previous year’s level of EUR 176.7 million. income from investments increased EUR 217.5 mil-lion to EUR 292.1 million and include EUR 158.3 million in dividends

from GPch, EUR 131.3 million from GM&T (previous year: EUR 69.3 million), and EUR 2.5 million from PremiumGas.

Other operating expense before exchange losses for the reporting period were EUR 84.3 million (previous year: EUR 67.4 million).

interest income fell from EUR +4.9 million the previous year to EUR – 3.2 million. The upstream merger of ZMb mobil Gmbh, Märkisch Luch (Germany), (formerly a wholly-owned subsidiary) with GPG with retrospective effect as of 1 january 2012 resulted in a merger gain of kEUR 554 that was recognized in extraordinary income.

As a consequence of the increased profit for the year, return on equity (profit for the year divided by equity, averaged from equity at the begin-ning of the financial year and equity at the end of the financial year) for the 2011 financial year grew to 16.1 %, up from 8.0 % the previous year.

NET AssETs ANd fiNANciNG

As of 31 december 2012, GPG’s total assets were EUR 2,920.6 million (previous year: EUR 3,298.8 million). On the assets side, fixed assets increased EUR 129.8 million due to investments and current assets decreased EUR 495.8 million, including a EUR 398.7 million decrease in securities. Liabilities fell EUR 607.7 million and include EUR 310.3 mil-lion payable to affiliated companies and EUR 297.7 million payable to banks.

GPG’s equity increased from EUR 2,190.8 million to EUR 2,416.8 mil-lion. The equity ratio was 82.8 % as of the balance sheet date (previous year: 66.4 %).

ANNUAL REPORT2012


028

cash and cash equivalents available for payment totalled EUR 499.2 mil-lion as of the balance sheet date (previous year: EUR 641.2 million). Net liabilities from cash pooling agreements were EUR 285.4 million as of the balance sheet date (previous year: EUR 289.4 million). Liabilities to banks totalled EUR 25.7 million as of the balance sheet date (previous year: EUR 323.4 million).

The net financial position as of the balance sheet date was EUR 188.1 million (previous year: EUR 427.1 million).

ANNUAL REPORT2012

iNcOME, NET AssETs, ANd fiNANciNG GAZPROM GERMANiA GMbh

029

hUMAN REsOURcEs

GPG had 202 employees (not including trainees) as of the balance sheet date (previous year: 197).

This financial year has again been characterized by constructive collabo-ration between the managing directors and the works council. This dia-logue has been positive for all involved and reflects the successful con-fluence of employee interests and company interests. in 2012, works agreements were concluded on a company pension scheme, trust-based working time, vacation, and employee assessment and motiva-tion for bonus purposes.

Our long-standing partnerships with the European school of Manage-ment & Technology, the humboldt University of berlin, and the faculty of Economics at the University of Leipzig (on the first German-Russian master’s programme in international Energy Economics and business Administration) have continued with the goal of supporting young grad-uates and helping our company to establish ties with future top execu-tives before they have completed their education.

ORGANiZATiONAL MANAGEMENT ANd iT

GPG is implementing more flexible process systems and reporting sys-tems commensurate to the dynamic market environment. during the reporting period, it developed a methodology for designing standard-ized business-process management that is currently being introduced. it also realized a technical solution for process documentation that interfaces with the company’s organizational structure documentation and its organizational manual.

GPG launched a business intelligence project with the goal of signifi-cantly accelerating and improving the quality of planning and reporting processes. This project addresses specialist, technical, and organiza-tional issues and focuses on harmonizing and further developing the underlying iT landscape at the GPG Group.

GPG assists its group companies in developing their risk management processes and systems and in developing and implementing systems for managing trading portfolios. One important activity is the provision of iT services to subsidiaries, in particular the implementation of ERP systems and a central file containing counterparty ratings.

sOciAL cOMMiTMENT

GPG has made a significant contribution to popularizing the GAZPROM brand and strengthening the public’s awareness of it in Germany and throughout Europe with its sponsorship and social sponsorship activ-ities. GAZPROM’s brand image in Germany has also considerably improved over the past few years. GAZPROM is increasingly perceived as a respectable, reliable, competent, and globally operating company.

— sPORTssince 2007, GPG’s sports sponsorship has focused on German bundes liga team fc schalke 04. This cooperation extends beyond shirt sponsorship to include projects such as the “weil du es verdient hast!” campaign, with which GAZPROM pays tribute to those who do volun-teer work for their contribution to the community. The initiative also comprises the GAZPROM social Event Tour and the long- established “Gib Gas gegen Gewalt” friendly match played in support of the preven-tion of violence in football. Elsewhere in football, GPG has a co-spon-sorship deal with Russian premier league club fc Zenit st Petersburg

NON-fiNANciAL PERfORMANcE iNdicATORs


ANNUAL REPORT2012


030

51.52010

%

66.42011

%

82.82012

%

Equity ratioGazprom Germania GmBh

Key Figures AnnuAl RepoRt2012

NON-fiNANciAL PERfORMANcE iNdicATORs GAZPROM GERMANiA GMbh

031

and is responsible for realizing GAZPROM’s sponsorship of the UEfA champions League.

— cULTURE ANd sOciALcultural projects play a key role in GPG’s diverse sponsorship activ-ities. during the Russia year in Germany 2012/2013, GPG’s cultural projects enjoyed the patronage of Russian President vladimir Putin and German President joachim Gauck. GPG has been the principle sponsor of Russian film week for many years and also supports the German-Russian festival, Germany’s largest festival of Russian cul-ture. it also devotes considerable time to promoting Russian art and culture in Germany; one such project from the past year was a con-cert given by the Moscow soloists at the berlin Philharmonic under the direction yuri bashmet.

GPG is a premium partner of Europa-Park in Rust, near freiburg, and is named sponsor of the “blue fire Megacoaster powered by GAZPROM”, a catapult rollercoaster. GAZPROM opened its Experience Energy attraction at Europa-Park in March 2010, and comprehensively renovated and expanded it to include addition-al exhibits in 2012. The new game stations give visitors interesting information on the Nord stream pipeline and a fascinating look at the diverse applications of natural gas.

GPG’s extensive social commitment also spans educational initia-tives and joint German-Russian projects aimed at furthering mutual understanding and encouraging German interest in Russia, its lan-guage, and its people, for example the “bundescup – spielend Russisch lernen” language initiative. Meanwhile, the annual ice hockey charity game between berlin’s Eisbären Allstars and the Gazprom export hockey team has become a well-established tradition. The benefit is held in support of up-and-coming young ice hockey players in GPG’s home city.

Financial assets

GAZPROM GERMANIA GMBH

Key Figures

ANNUAL REPORT2012


032

2010 2011 2012

1,69

9,01

0

1,81

1,90

4

1,94

4,98

8

kEU

R

kEU

R

kEU

R

AnnuAl RepoRt2012

NON-fiNANciAL PERfORMANcE iNdicATORs GAZPROM GERMANiA GMbh

033

OvERALL Risk AssEssMENT

GAZPROM and GPG welcome the liberalization of the European energy market, which will lead to greater diversity of market suppliers.

The current natural gas supply situation has created a challenging market environment for Russian natural gas that may lead to short-term profit risk and require new ways of stabilizing sales volumes.

The European financial crisis has not directly affected GPG’s risk situation. however, the changing market is taken into consideration when determining limits for sales and trading activities and financial transactions. GPG has also minimized its credit risk by diversifying its exposure to banks when investing.

in summary, we are not aware of any risks that threaten the existence of GPG in the foreseeable future.

Risk MANAGEMENT sysTEM

GPG’s Risk Management ensures that risk is identified, assessed, managed and monitored from an early stage throughout the GPG Group. Equity risk is managed with an economic-capital concept that assesses and limits risk using value-at-Risk (vaR) methods.

cash flow risk is also managed using a vaR-based method whereby risks are continuously measured against the company’s available liquidity. vaR is an estimate of the maximum possible loss the portfolio can incur during a specified holding period at a given confidence level.

The company’s aggregate risk is calculated monthly using vaR methods for a holding period of one year at a confidence level of 99.8 %.

The tasks of presenting GPG’s risk status to its parent company, obtaining risk approval for individual items of business or the involvement of new business partners, and approving modifications to risk policy and methods are handled by the Risk Oversight committee (ROc), which meets month-ly. The permanent voting members of the ROc include a representative of Gazprom export’s risk management department, a representative of GPG’s management, GPG’s director of finance and controlling, and GPG’s chief Risk Officer.

The major types of risk facing the company are market price risk, default risk, and technical risk arising from project activities. The company’s risk is managed using pre-tax figures.

— MARkET RiskThe primary market risk facing the company arises from changes in raw commodity prices and volumes and from exchange rate fluctuations affec-ting cash pooling for subsidiaries and foreign-currency positions (generally Usd). further market risk arises from loan receivables and liabilities. The company faces only insignificant interest-rate risk.

foreign exchange positions in the cash pool resulting from subsidiaries’ trading activities are managed primarily via the times of cash inflows and outflows in the various foreign currencies. The remaining net positions are offset against a foreign currency limit and monitored regularly.

Risk REPORT— MANAGEMENT REPORT

ANNUAL REPORT2012


034

To determine market risk, a Monte carlo simulation is used whereby the distribution of profit and loss is estimated statistically over a one-year holding period. This simulation involves modelling risk factor changes and their correlations. The vaR is calculated using a statistical ranking and represents the 99.8 % quantile.

in the context of risk management, derivative financial instruments serve to hedge against commodity and currency risks that arise in the course of regular business. These instruments include forward contracts, options, and swaps. No hedges had been concluded as of the balance sheet date.

GPG held no significant foreign currency derivative positions on the balance sheet date. interest rate risk arises from a potential change in market interest rates. This risk may lead to changes in fair value in respect of fixed-rate financial instruments and fluctuations in interest payments in the case of floating-rate financial instruments.

floating-rate loans granted to or by GPG are based on EURibOR and LibOR. This risk is assessed using the value-at-risk approach described above.

— dEfAULT RiskGPG’s default risk arises primarily from the group’s holdings in partici-pations, financial transactions, loans given, and cash in banks held for cash management purposes. This risk is assessed and limited using a dedicated internal rating procedure; counterparties‘ ratings are monito-red on an ongoing basis.

Unless corporate strategic risk is concerned, decisions on loan extensions are made on the basis of the counterparty’s credit rating and the potential loss. where possible, this risk is managed using framework agree ments with customary hedging and netting provisions. The majority of financial transactions are conducted with creditworthy counterparties only.

counterparties’ default risks are factored in directly when modelling credit risk; counterparty correlations are also taken into account.

The credit risk arising from derivative financial instruments is the amount of the positive fair value plus a premium to cover potential future increases in fair value due to changes in market price. To reduce this credit risk, global netting agreements are made with counterparties in accordance with standard trading agreements.

— OPERATiONAL RiskOperational risk is the risk of loss as a result of inadequate or flawed inter-nal processes, human error, system failure, or external events.

Regular risk audits are carried out to facilitate the early recognition, assessment, monitoring, and prompt reporting to the management. Operational risk is managed using basel ii’s basic-indicator approach.

— TEchNicAL RiskTechnical risk arising from GPG’s project activities is assessed based on expert estimates of the probability of loss and the potential loss amount. This risk is quantified using a vaR approach, taking potential event correla-tion into account.

— LiQUidiTy RiskLiquidity risk arises from the variability of future cash inflows and outflows. This risk can be countered by synchronizing cash flows and aligning foreign currency assets.

contractual clauses concerning the obligation to comply with the specific financial figures (covenants) are continuously monitored using both the vaR approach and scenario analyses.

— cAPiTAL sTRUcTURE MANAGEMENTcapital structure management aims to ensure that GPG and its subsidi-aries and investments have the financial freedom to act at all times. This centres largely around balance sheet equity. The risk pertaining to these figures is determined each month and included in the monthly risk reports.

capital structure management is undertaken by ensuring minimum equity, equity ratio, and leverage position. These figures are used as financial covenants when concluding loan agreements with banks. The leverage position is determined using the ratio of adjusted EbiTdA to net financial debt. The thresholds are set at EUR 2 billion minimum equity capital, 20 % equity capital ratio, and a leverage position of 2.5. These thresholds were kept to throughout this and the previous reporting periods.

ANNUAL REPORT2012

Risk REPORT GAZPROM GERMANiA GMbh

035

2,095,050kEUR

EquityGazprom Germania GmBh

Key Figures

AnnuAl RepoRt2012

MANAGEMENT REPORT

2010


036

2,190,762

2,416,821

AnnuAl RepoRt2012

EQUiTy

kEUR

2011

kEUR

2012


037

GPG is operating in a market environment that is undergoing swift, last-ing, and fundamental change. GPG’s stated goal is to assist the GAZPROM Group’s entry into consumer-oriented stages of the value chain in Europe and to open new sales channels for Russian natural gas. it remains GPG’s foremost priority to ensure the reliable supply of energy using medium- and long-term gas supply contracts as part of GAZPROM’s corporate strategy.

The full transfer of German trading and storage company w & G – which bAsf and GAZPROM previously operated as a joint venture – to GAZPROM may make a significant contribution. On 14 November 2012, GAZPROM and bAsf signed a letter of intent on an asset swap under which GPG is to receive the option to increase its shareholding in the w & G Group’s trad-ing and storage companies and wiEh to 100 %. it is planned that the final agreement will be concluded and all merger approvals obtained with retro-active effect to 1 April 2013.

Alongside its holding function, both continuing existing projects and devel-oping new projects in the area of gas storage will retain their high priority at GPG in the future. GAZPROM’s decision of january 2013 to restructure the GAZPROM Group’s foreign activities will lead to changes to the GPG’s subsidiary structure in the coming years. it is likely that GPG’s foreign sub-sidiaries and participations will be centralized at Gazprom export and its German participations centralized at GPG. it is not yet possible to fully antici-pate the financial consequences of this restructuring. irrespective of this, GPG forecasts a net profit of EUR 110 million for the 2013 financial year. it is not possible to forecast profits for 2014.


fOREcAsT

ANNUAL REPORT2012


038

03bALANcE shEET— GAZPROM GERMANiA GMbh

ANNUAL REPORT2012

bALANcE shEET GAZPROM GERMANiA GMbh

039

— bALANcE shEET

keur Notes 31 Dec 2012 31 Dec 2011

AssETs

A. Non-current assets (1) 2,013,065 1,883,279

i. intangible assets 4,681 5,454

ii. Property, plant, and equipment 63,396 65,921

iii. financial assets (2) 1,944,988 1,811,904

B. current assets 898,947 1,394,694

i. inventories (3) 504 495

ii. Receivables and other assets (4) 399,275 354,274

iii. securities – 398,683

iv. cash in hand, bank balances 499,168 641,242

c. Prepaid expenses and deferred charges (5) 8,139 20,437

D. Asset difference from the netting of assets 435 368

totAl Assets 2,920,586 3,298,778

EQUiTy ANd LiAbiLiTiEs

A. equity (6) 2,416,821 2,190,762

i. subscribed capital 225,595 225,595

ii. capital reserve 799,872 799,872

iii. Retained earnings 1,391,354 1,165,295

B. special reserve item (7) 1,002 1,062

c. Provisions (8) 24,826 19,339

D. liabilities (9) 456,348 1,064,004

e. Deferred income 33 27

F. Deferred tax liabilities (10) 21,556 23,584

totAl equity AND liABilities 2,920,586 3,298,778

ANNUAL REPORT2012

bALANcE shEETGazprom Germania GmBh

040

04

iNcOMEsTATEMENT


ANNUAL REPORT2012

iNcOME sTATEMENT GAZPROM GERMANiA GMbh

041

— iNcOME sTATEMENT

keur Notes 2012 2011

01. Revenue (11) 647,048 1,255,950

02. Other operating income (12) 77,443 130,275

03. cost of materials – 647,274 – 1,234,874

a) cost of raw materials, supplies, and goods purchased for resale – 613,167 – 496,779

b) cost of purchased services – 34,107 – 738,095

04. Employee benefits expense (13) – 22,314 – 20,961

a) wages and salaries – 19,688 – 18,584

b) social security and pension costs – 2,626 – 2,377

05. depreciation and amortization expense; impairment of intangible assets and property, plant, and equipment (14) – 8,010 – 7,449

06. Other operating expense (15) – 127,530 – 186,532

07. income from profit pooling 200,960 176,750

08. income from investments (16) 292,069 74,564

09. income from other securities and loans held as non– current financial assets (17) 23,429 33,138

10. Other interest and similar income (18) 11,172 8,322

11. impairment of non– current financial assets and current securities (19) – 4,505 – 2,906

12. interest and similar expenses (20) – 37,806 – 36,609

13. result from ordinary activities 404,682 189,668

14. Extraordinary income 554 –

15. extraordinary result (21) 554 –

16. income tax (22) – 36,956 – 28,941

17. deferred tax (10) 2,027 10,014

18. Other taxes – 21 – 29

19. ProFit For the yeAr 370,286 170,712

ANNUAL REPORT2012

iNcOME sTATEMENTGazprom Germania GmBh

042


NOTEs TO ThE ANNUAL fiNANciALsTATEMENTs

ANNUAL REPORT2012

NOTEs TO ThE ANNUAL fiNANciAL sTATEMENTs

05


043

GPG is a large corporation pursuant to section 267 of the German commercial code (hGb). The annual financial statements have been prepared in accord-ance with the accounting principles for large corporations of the German commercial code in conjunction with the German Act about companies with Limited Liability (GmbhG).

The balance sheet is structured on the basis of section 266 of the German commercial code. The classification of the balance sheet items is disclosed according to Section 265 (7) № 2 of the German Commercial Code in the Notes. The income statement was drawn up in the total expenditure format in accordance with section 275 (2) of the German commercial code.

The financial year is a calendar year.

for the sake of clearer presentation, details to the items of the balance sheet and the income statement as required by law, as well as those details which can be disclosed either in the balance sheet and in the income statement or in the notes, are provided in the notes.

The annual financial statements are drawn up in euro. Unless otherwise indicated, the amounts are shown in thousands of euros (kEUR).

The cash flow statement is drawn up using the direct method and is derived from the data in the annual statements. cash and cash equivalents comprise cash in hand and cash in banks.

ZMb mobil Gmbh merged with GPG by transferring its assets, as a whole and dissolved but not wound up, on the basis of a merger agreement of 14 August 2012 approved by the resolutions as of the same date.

Previous year comparatives reflect the unconsolidated view of the merged companies. The company refrains from disclosing the consolidated view due to its minor effect. The gain from the merger in the amount of kEUR 554 is disclosed within extraordinary income.

— NOTEs TO ThE ANNUAL fiNANciAL sTATEMENTs

GENERAL NOTEs

bERLiNfERNsEhTURM

GERMANyANNUAL REPORT2012

NOTEs TO ThE ANNUAL fiNANciAL sTATEMENTsGAZPROM GERMANiA GMbh

044

ANNUAL REPORT2012

GENERAL NOTEs GAZPROM GERMANiA GMbh

045

Tax simplification rules stipulated in section 6 (2) of the German income Tax Act concerning depreciation rules for law-value, non-current assets that can be used separately and cost maximal EUR 410 without input tax, are not applied to the assets’ valuation in the balance sheet in 2012. compound items with a useful life of 5 years were formed for addi-tions to movable property whose acquisition and production costs lay between EUR 150 and EUR 1,000 for periods from 2008 to 2010 in accordance to section 6 (2a) of the German income Tax Act.

Non-current financial assets are measured at cost, or if long-term impairment is likely, at their lower fair value. if the fair value subse-quently increases, the impairments are reversed. interest-free loans granted are measured at net present value; other loans granted are measured at nominal value.

inventories are measured at cost following the strict lower of cost or market principle.

receivables and other assets are measured at nominal value. individual risks are reflected in impairment losses.

Trade and other receivables for gas deliveries up to the reporting date are recognized at contractually agreed prices using estimates based on past experience. The subsequent determination of additional costs, including transportation and other service costs, may give rise to devi-ations, which are accounted for in the subsequent financial year.

cash and cash equivalents are measured at nominal value at the bal-ance sheet date.

useFul live (yeArs)

intangible assets 2 – 10

buildings and other constructions 6 – 60

Technical equipment and machinery 3 – 20

fixtures, fittings, and equipment 2 – 23

Property, plant and equipment, and intangible assets acquired from third parties for a consideration are valued at cost less straight-line reg-ular amortization or depreciation. Assets that are likely to be impaired in the long term are written down.

Amortization and depreciation rates depend on the useful lives of assets. The estimated useful lives of the individual groups of property, plant, and equipment are as follows:


AccOUNTiNGPOLiciEs

ANNUAL REPORT2012


046

Prepaid expenses and deferred charges have been recorded for out-lays prior to the balance sheet date where they represent expenditures for a specific time after this day.

subscribed capital is recognized at its nominal value.

A special reserve item was recognized equivalent to the amount of the special depreciation allowances made in previous years in accordance with section 4 of the German Assisted Areas Act (fördergebietsgesetz); this reserve item is reversed over its useful life. According to transitional rules of the German Accounting Law

Modernization Act (bilMoG), the items of the special reserve shall be recorded according to applicable rules as stipulated in the German commercial code, version as of 28 May 2009.

Pension provisions are allocated in full and recognized at values deter-mined using the projected unit credit method in accordance with the German commercial code. Professor klaus heubeck’s Mortality Rates 2005 G were used to complete this calculation. This calculation was made on the basis of an assumed average remaining maturity of fif-teen years and the following assumptions:

Pension claims are measured at their expected settlement amount. They are offset against assets that are available to be used only to pay or fund employee benefits, and are not available to the reporting entity’s further creditors (plan assets). Plan assets are valued according to section 253 (1.4) of the German commercial code at their fair value.

other provisions are measured to reflect all identifiable risks and uncer-tain obligations. They are recognized at their expected settlement amount required to meet any future payment obligations according to prudent commercial assessment. future price and costs increase is accounted for, provided there is sufficient objective evidence for their occurrence.

The portion of provisions that is allotted to expenses due after the balan-ce sheet date of the following financial year is discounted at the average market interest rate for the last seven years relevant to the remaining maturities of the provisions.

for future expenses due to contractual obligations for the dismantling of assets and cushion gas extraction obligations provisions were recognis-ed at their annual settlement amount, i. e. taking into consideration the expected costs at the settlement date. for the measurement of provisi-ons, corresponding remaining maturities and expected cost increases of 2 % per annum are assumed.

liabilities are recognized at their settlement amount.

31 Dec 2012 31 Dec 2011

discount rate 5.05 % 5.14 %

wage and salary trend 5.00 % 5.00 %

Pension trends 1.00 % 1.00 %

Expected rate of return on plan assets 4.00 % 4.50 %

ANNUAL REPORT2012

AccOUNTiNG POLiciEs GAZPROM GERMANiA GMbh

047

curreNcy (1 eur =)exchANge rAte oN

31 Dec 2012exchANge rAte oN

31 Dec 2011AverAge exchANge

rAte 2012AverAge exchANge

rAte 2011

Us dollar (Usd) 1.31940 1.29390 1.28479 1.39196

Pound sterling (GbP) 0.81610 0.83530 0.81087 0.86788

swiss franc (chf) 1.20720 1.21560 1.20528 1.23260

czech crown (cZk) 25.15091 25.78715 25.14901 24.58996

serbian dinar (Rsd) 112.41007 104.89877 112.46064 101.39931

Turkish lira (TRy) 2.35510 2.44320 2.31354 2.33781

remAiNiNg mAturity uNDer 1 yeAr remAiNiNg mAturity over 1 yeAr

Receivables Average spot exchange rate on the balance sheet dateforeign exchange selling rate on the date of the transaction or

the higher rate on the balance sheet date

Liabilities Average spot exchange rate on the balance sheet dateforeign exchange buying rate on the date of the transaction or

the lower currency exchange rate on the balance sheet date

foreign currency translation of receivables and liabilities is based on the following exchange rates:


fOREiGN cURRENcy TRANsLATiON

cash in hand and bank balances in foreign currency held at call are valued at the rate applicable on the reporting date.

Translation of receivables and liabilities in foreign currencies into EUR is based on the following exchange rates:

ANNUAL REPORT2012


048

16.1 %2012

8.0 %2011

ROE*


Key figures

*Average of equity measured at the beginning of the financial year and the end of the financial year

AnnuAl RepoRt2012

fOREiGN cURRENcy TRANsLATiON GAZPROM GERMANiA GMbh

049

The recognition and valuation of deferred taxes is carried out using the bal-ance sheet liability method. According to this method, deferred taxes are calculated on differences between carrying amounts and the tax base of all balance sheet items, whereas only temporary differences are relevant. deferred tax liabilities have to be recognised for net taxable amounts result-ing from these calculations. deferred tax assets can be recognised, if the net result is deductible in determining taxable profit or loss. GPG will use this option as soon as corresponding requirements are met.

deferred tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the deductible temporary differ-ence can be utilised.

deferred taxes are measured at the tax rates enacted at the reporting date or that have been substantively enacted and that are expected to apply to the period when the asset is realised or the liability is settled.

deferred tax assets and deferred tax liabilities are offset if the entity has a corresponding legally enforceable right and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.


dEfERREd TAxEs

ANNUAL REPORT2012


050

Provisions

Key Figures

24.8


19.3

AnnuAl RepoRt2012

DEFERRED TAXES

kEUR

kEUR

2011

2012

Million

Million


051

keur 1 JAN 2012 ADDitioNs DisPosAls trANsFers 31 Dec 2012

Acquisition costs 1,965,596 152,397 – 23,591 – 2,094,402

i. intangible assets 11,589 1,397 – 76 – 12,910

concessions, industrial property rights, and similar rights and assets, and licenses in such rights and assets 11,589 1,097 – 76 – 12,610

Prepayments made – 300 – – 300

ii. Property, plant, and equipment 114,647 3,423 – 300 – 117,770

Land, land rights, and buildings including buildings on third party land 22,891 309 – – 18 23,182

Technical equipment and machinery 58,461 1,112 – – 59,573

Other plant, factory, and office equipment 10,091 2,000 – 300 18 11,809

Prepayments made and assets under construction 23,204 2 – – 23,206

iii. financial assets 1,839,360 147,577 – 23,215 – 1,963,722

shares in affiliated companies 91,521 436 – 4,656 – 87,301

Loans to affiliated companies 21,110 43,088 – – 64,198

Other investments 1 1,174,512 44,968 1 – – 1,219,480

Loans to other investments 552,211 59,085 – 18,553 – 592,743

Other loans 6 – – 6 –

Accumulated amortization and depreciation 82,317 12,784 – 13,764 – 81,337

MOvEMENTs iN PROPERTy, PLANT, ANd EQUiPMENT — 01


NOTEs TO ThE bALANcE shEET

ANNUAL REPORT2012


052

keur 1 JAN 2012 ADDitioNs DisPosAls trANsFers 31 Dec 2012

Book values 1,883,279 139,613 8,726 – 2,013,065

i. intangible assets 5,454 – 773 – – 4,681

concessions, industrial property rights, and similar rights and assets, and licenses in such rights and assets 5,454 – 1,073 – – 4,381

Prepayments made – 300 – – 300

ii. Property, plant, and equipment 65,921 – 2,487 – 38 – 63,396

Land, land rights, and buildings including buildings on third party land 14,228 – 129 – – 15 14,084

Technical equipment and machinery 46,226 – 2,981 – – 43,245

Other plant, factory, and office equipment 5,467 623 – 38 15 6,067

iii. financial assets 1,811,904 142,873 8,764 – 1,944,988

shares in affiliated companies 73,566 – 4,069 – 622 – 68,875

Loans to affiliated companies 21,110 42,976 – – 64,086

Other investments 2 1,165,120 44,968 9,392 – 1,219,480

Loans to other investments 552,102 58,998 – – 592,547

Other loans 6 – – 6 – –

The impact of the merger of ZMb mobil Gmbh with GPG is reflected as an addition to the cost amounting to kEUR 138 and addition to depreci-ation amounting to kEUR 69.

i. intangible assets 6,135 2,170 – 76 – 8,229

concessions, industrial property rights, and similar rights and assets, and licenses in such rights and assets 6,135 2,170 – 76 – 8,229

ii. Property, plant, and equipment 48,726 5,910 – 262 – 54,374

Land, land rights, and buildings including buildings on third party land 8,663 438 – – 3 9,098

Technical equipment and machinery 12,235 4,093 – – 16,328

Other equipment, operating and office equipment 4,624 1,377 – 262 3 5,742

Prepayments made and assets under construction 23,204 2 – – 23,206

iii. financial assets 27,456 4,704 – 13,426 – 18,734

shares in affiliated companies 17,955 4,505 – 4,034 – 18,426

Loans to affiliated companies – 112 – – 112

Other investments 9,392 – – 9,392 2 – –

Loans to other investments 109 87 – – 196

1 Additions in the amount of kEUR 11,239 are transfers from current assets2 disposals in the amount of kEUR 9,392 relate to appreciation in value

ANNUAL REPORT2012

NOTEs TO ThE bALANcE shEET GAZPROM GERMANiA GMbh

053

iNvEsTMENTs — 02

investments with a direct interest of at least 20 % in share capital were as follows:

comPANy, registereD oFFiceshAre

31 Dec 2012 (%) curreNcyequity

31 Dec 2011Net result

2011

Affiliated companies

01 GAZPROM schweiz AG, Zurich (switzerland) 100.00 kchf 667,885 45,543

02 Gazprom Marketing & Trading Ltd, London (United kingdom) 100.00 kGbP 513,344 83,488

03 vEMEx s. r. o., Prague (czech Republic) 50.14 kcZk 216,626 49,296

04 ZGG – Zarubezhgazneftechim Trading Gmbh, vienna (Austria) 100.00 kEUR 9,688 – 986

05 Erste Gazprom Projektgesellschaft mbh, berlin (Germany) 100.00 kEUR 22 – 1

06 Zweite Gazprom Projektgesellschaft mbh, berlin (Germany) 100.00 kEUR 22 – 1

07 ZMb Gaz depo A. s., istanbul (Turkey) 100.00 kTRy 3,345 – 864

08 ZMb Gasspeicher holding Gmbh, vienna (Austria) 66.67 kEUR 35,263 – 1,361

other investments

09 bosphorus Gaz corporation A. s., istanbul (Turkey) 71.00 kTRy – 62,359 – 28,689

10 south stream Transport b. v., Amsterdam (Netherlands) 50.00 founded in November 2012

11 Podzemno skladiste gasa banatski dvor d. o. o., Novi sad (serbia) 51.00 kRsd 4,354,931 746,454

12 Erdgasspeicher Peissen Gmbh, halle/s. (Germany) 50.00 kEUR 9,072 – 930

13 fRAGAZ sA i. L., Paris (france) 2 50.00 kEUR 50 – 947

14 Gas Project development central Asia AG, baar (switzerland) 50.00 kUsd 193,312 23

15 sEP company kft., budapest (hungary) 50.00 khUf 182,711 – 451

16 wiEh verwaltungs-Gmbh, kassel (Germany) 50.00 kEUR 34 1

17 wintershall Erdgas handelshaus Gmbh & co. kG, berlin (Germany) 50.00 kEUR 52 0 3

18 PremiumGas s. p. A., Milan (italy) 50.00 kEUR 11,484 6,521

19 w & G beteiligungs-Gmbh & co. kG, kassel (Germany) 4 49.98 kEUR 623,516 0 3

20 w & G verwaltungs-Gmbh, kassel (Germany) 5 49.98 kEUR 275 5

21 Etzel kavernenbetriebs-verwaltungsgesellschaft mbh, hamburg (Germany) 33.33 kEUR 85 – 2

22 Etzel kavernenbetriebsgesellschaft mbh & co. kG, hamburg (Germany) 33.33 kEUR 46,668 – 24,953

1 cEA centrex Energy & Gas Gmbh was liquidated on 29 february 2012

2 fRAGAZ sA, Paris, france is in liquidation starting from july 20113 Profit and loss transfer agreement4 wiNGAs Gmbh & co. kG, kassel before April 20125 wiNGAs verwaltungs-Gmbh, kassel before March 2012

ANNUAL REPORT2012


054

investments with an indirect interest of 20 % in share capital were as follows at the balance sheet date:

comPANy, registereD oFFiceshAre

31 Dec 2012 (%) viA curreNcyequity

31 Dec 2011Net result

2011

Affiliated companies

23 iMUk AG, chur, switzerland 100.00 01 kchf 2,841 – 139

24 Gazprom Marketing & Trading Retail Ltd, Manchester (United kingdom) 100.00 02 kGbP 18,677 7,187

25 Gazprom Marketing & Trading Retail Germania Gmbh, walluf (Germany) 1 100.00 02 kEUR – 1,358 – 1,439

26 Gazprom Marketing & Trading Germania Gmbh, berlin (Germany) 100.00 02 kEUR 354 138

27 Gazprom Marketing & Trading france sAs, Nanterre (france) 100.00 02 kEUR 1,920 370

28 Gazprom Marketing & Trading switzerland AG, Zug (switzerland) 100.00 02 founded in december 2011

29 Gazprom Marketing & Trading singapore PTE Ltd, singapore (singapore) 100.00 02 kUsd 320,146 231,909

30 Gazprom Marketing & Trading UsA inc., delaware (UsA) 100.00 02 kUsd 371 – 1,047

31 Gazprom Global LNG Ltd, London (United kingdom) 100.00 02 kUsd 76,563 52,481

32 Gazprom Mex (Uk) 1 Ltd, London (United kingdom) 100.00 02 kGbP 1 0

33 Gazprom Mex (Uk) 2 Ltd, London (United kingdom) 100.00 32 kGbP 0 0

34 Gazprom Marketing & Trading México s. de R. L. de c. v., Tijuana (Mexico) 1 100.00 37/38 kUsd – 4,240 – 4,314

35 vemex Energo s. r. o., bratislava (slovakia) 50.14 03 kEUR – 47 – 236

36 vEMEx Energie a. s., Prague (czech Republic) 25.57 03 kcZk 75,974 – 19,101

37 RsP Energy sk a. s., bratislava (slovakia) 25.57 36 kEUR 16 – 133

other investments

38 Promgas s. p. a., Milan (italy) 50.00 01 kEUR 5,451 379

39 Gwh Gashandel Gmbh, vienna (Austria) 50.00 01 kEUR 4,445 2,846

40 Russian-serbian Trading corporation a. d., Novi sad (serbia) 25.05 01 kRsd 154,486 153,438

41 wiNGAs storage Uk Ltd, London (United kingdom) 33.33 09 kGbP 44,172 – 12,448

1 The most recent financial statements are available as of 31 december 2010

iNvENTORiEs — 03

inventories comprise raw materials and supplies.

ANNUAL REPORT2012


055

REcEivAbLEs ANd OThER AssETs — 04

keur 31 Dec 2012mAturiNg iN more

thAN 1 yeAr 31 Dec 2011mAturiNg iN more

thAN 1 yeAr

total trade receivables 87 – 57 –

receivables from affiliated companies

Trade receivables 44,959 – 76,372 –

Loans 55,675 – 3,551 –

Other assets 2,457 – –

total receivables from affiliated companies 103,091 – 79,923 –

thereof due from the shareholder 23,814 – 890 –

receivables from investments

Trade receivables 694 – 13,880 –

Loans 19,326 – 15,482 –

Other assets 200,960 – 176,750 –

total receivables from investments 220,980 – 206,112 –

total other assets 75,117 15 68,182 64

totAl trADe AND other receivABles 399,275 15 354,274 64

PREPAid ExPENsEs ANd dEfERREd chARGEs — 05

Prepaid expenses and deferred charges in the amount of kEUR 1,741 (2011: kEUR 10,219) have maturities of more than one year.

Receivables arising legally only after the balance sheet date amount to kEUR 31.

ANNUAL REPORT2012


056

EQUiTy — 06

keur suBscriBeD cAPitAl cAPitAl reserve retAiNeD eArNiNgs totAl

1 Jan 2011 225,595 799,872 1,069,583 2,095,050

dividends – – – 75,000 – 75,000

Profit for the year – – 170,712 170,712

31 Dec 2011 225,595 799,872 1,165,295 2,190,762

dividends – – – 144,227 – 144,227

Profit for the year – – 370,286 370,286

31 Dec 2012 225,595 799,872 1,391,354 2,416,821

sPEciAL REsERvE iTEM — 07

A special reserve item was recognised in accordance with the regulations of section 4 of the German Assisted Areas Act (förder gebiets gesetz) as per section 281 (1) of the German commercial code. According to transitional rules of the German Accounting Law Modernization Act

(bilMoG), the items of the special reserve shall be recorded in the same manner as stipulated in the German commercial code, version as of 28 May 2009.

PROvisiONs — 08

keur 2012 2011

Provisions for pensions and similar obligations 1,159 1,306

tax provisions 6,976 1,397

Return delivery obligations for natural gas 6,562 6,161

Employee benefits obligations 5,553 4,290

Restoration obligations 2,435 2,073

Outstanding invoices 1,095 1,100

Other provisions 1,046 3,012

total other provisions 16,691 16,636

totAl ProvisioNs 24,826 19,339

Pension obligations subject to provisions amounted to kEUR 4,490 (2011: kEUR 4,090) at the balance sheet date. These were offset with plan assets amounting to kEUR 3,767 (2011: kEUR 3,152) according to the section 246 (2.2) of the German commercial code. contractual Trust Agreements were classified as plan assets. At the

balance sheet date a net plan asset amounted to kEUR 435 (2011: kEUR 368).

Utilization of the provision for pensions in the amount of kEUR 101 mainly relates to a former management member.

ANNUAL REPORT2012


057

LiAbiLiTiEs — 09

31 Dec 2012

keuruP to

1 yeArBetweeN

2 AND 5 yeArs totAl

liabilities to banks 200 25,500 25,700

trade payables 24,316 – 24,316

Accounts payable to affiliated companies 373,497 66 373,563

Trade payables 1,677 – 1,677

Loans payable 371,820 – 371,820

Other liabilities – 66 66

Payables to other investments 31,953 – 31,953

Trade payables 23 – 23

Loans payable 31,930 – 31,930

Other liabilities – – –

other liabilities 816 – 816

Tax payables 533 – 533

social security contributions payable –

Other liabilities 283 – 283

totAl liABilities 430,782 25,566 456,348

31 Dec 2011

keuruP to

1 yeArBetweeN

2 AND 5 yeArs totAlthereoF secureD

liabilities to banks 297,940 25,500 323,440 8,050

Advance payments received for orders 25,531 – 25,531 –

trade payables 12,535 – 12,535 –

Accounts payable to affiliated companies 674,936 59 674,995 –

Trade payables 76,388 – 76,388 –

Loans payable 598,548 – 598,548 –

Other liabilities – 59 59 –

Payables to other investments 26,308 – 26,308 –

Trade payables 37 – 37 –

Loans payable 26,271 – 26,271 –

Other liabilities – – – –

other liabilities 1,195 – 1,195 –

Tax payables 561 – 561 –

social security contributions payable 1 – 1 –

Other liabilities 633 – 633 –

totAl liABilities 1,038,445 25,559 1,064,004 8,050

Accounts payable to the shareholder amount to kEUR 66 (2011: kEUR 12,557).

ANNUAL REPORT2012


058

dEfERREd TAx — 10

deferred tax is recognised due to the following valuation differences:

keur tAx rAte 31 Dec 2012 31 Dec 2011

30,18 % 25,00 % 15,83 % totAl totAl

discounting of non-current receivables not bearing interest – – 4,695 4,695 2,346

Other provisions 151 – 151 443

foreign currency exchange gains and losses on receivables 4 – – 4 –

Provisions for pensions – – – – 33

Offsetting of deferred tax assets and liabilities – 155 – – 4,695 – 4,850 – 2,822

totAl DeFerreD tAx Assets – – – – –

Proportionate deferred tax from partnerships – 115 – – 24,493 – 24,608 – 25,316

Provisions for pensions – 42 – – – 42 –

foreign currency exchange gains and losses on receivables – 361 – – – 361 – 121

Asset difference from the netting of assets – 131 – – – 131 – 111

foreign currency exchange gains and losses on payables – 721 – – – 721 – 362

Other provisions – – 44 – – 44 – 20

differing amortization and depreciation methods – – 499 – – 499 – 476

Offsetting of deferred tax assets and liabilities 155 – 4,695 4,850 2,822

totAl DeFerreD tAx liABilities – 1,215 – 543 – 19,798 – 21,556 – 23,584

deferred taxes through income tax expense (–) / income (+) – 1,096 – 48 3,171 2,027 10,014

totAl chANges iN DeFerreD tAxes – 1,096 – 48 3,171 2,027 10,014

ANNUAL REPORT2012


059

REvENUE — 11

keur 2012 2011

Natural gas trading in Eastern Europe and Asia 636,585 1,243,521

services 10,463 12,429

totAl reveNue 647,048 1,255,950

OThER OPERATiNG iNcOME — 12

keur 2012 2011

Gains from foreign currency exchange 38,434 123,081

Net profits from disposals of property, plant, and equipment 12,774 423

Gains from the revaluation of current assets 11,239 –

Gains from the revaluation of financial assets 9,392 –

Gains from reversal of provisions 243 716

Gains from reversal of the special reserve item 60 60

Gains from reversal of impairment losses from receivables – 1,584

Other income relating to previous periods – 16

sundry 5,301 4,395

totAl other oPerAtiNg iNcome 77,443 130,275


NOTEs TO ThE iNcOME sTATEMENT

ANNUAL REPORT2012


060

Other operating income in the amount of kEUR 12,735 relates to the sale of the share in licences for the oil and gas exploration in the wingate field in the southern part of the North sea. The sales agreement was conclud-ed on 21 december 2011 being economically effective as of 1 july 2011. The contract was subject to several conditions precedent. The last condi-tion precedent was fulfilled on 24 september 2012.

The sale resulted in profit amounting to kEUR 17,185. with the com-mencement of the exploration activities in October 2011, a positive impact on earnings amounting to kEUR 4,450 has already been real-ised. The remaining kEUR 12,735 were recognised through profit and loss in 2012 resulting from current operations.

keur 2012

income from operations held for sale 33,311

sales price reduction due to the reduced natural gas volumes as of 24 september 2012 – 11,230

costs reimbursed by the buyer – 4,896

Net iNcome From DisPoseD oPerAtioNs 17,185

EMPLOyEE bENEfiTs ExPENsE — 13

Employee benefits expenses comprise retirement benefit costs in the amount of kEUR 749 (2011: kEUR 458).

emPloyees oN AverAge For the yeAr 2012 2011

Employees 198 203

Apprentices and trainees 2 3

emPloyees 200 206

dEPREciATiON ANd AMORTiZATiON; iMPAiRMENT Of iNTANGibLE AssETs ANd PROPERTy, PLANT, ANd EQUiPMENT

— 14

keur 2012 2011

depreciation and amortization of:

intangible assets 2,126 2,144

Property, plant, and equipment 5,840 5,305

total depreciation and amortization 7,966 7,449

impairment of:

Property, plant, and equipment 44 –

total impairment 44 –

totAl DePreciAtioN AND AmortizAtioN; imPAirmeNt oF iNtANgiBle Assets AND ProPerty, PlANt, AND equiPmeNt 8,010 7,449

ANNUAL REPORT2012

NOTEs TO ThE iNcOME sTATEMENT GAZPROM GERMANiA GMbh

061

OThER OPERATiNG ExPENsE — 15

sundry operating expenses pertain mainly to sponsoring, consulting, and external personnel.

keur 2012 2011

Losses from foreign currency exchange 43,229 118,951

Additions to impairment losses from receivables 12,458 –

Net losses from disposals of property, plant, and equipment 11 138

Other losses not relating to this reporting period – 245

sundry 71,832 67,198

totAl other oPerAtiNg exPeNse 127,530 186,532

iNcOME fROM iNvEsTMENTs — 16

income from investments in the amount of kEUR 289,569 (2011: kEUR 69,301) pertain to affiliated companies.

iNcOME fROM OThER sEcURiTiEs ANd LOANs GRANTEd hELd As NON-cURRENT fiNANicAL AssETs

— 17

income from affiliated companies in the amount of kEUR 2,914 (2011: kEUR 8,132) is disclosed as income from securities and loans granted held as non-current financial assets.

OThER iNTEREsT ANd siMiLAR iNcOME— 18

Other interest and similar income pertain to affiliated companies in the amount of kEUR 224 (2011: kEUR 948) and in the amount of kEUR 4,746 (2011: kEUR 10,568) to compounding interest income.

iMPAiRMENT Of NON-cURRENT fiNANciAL AssETs ANd sEcURiTiEs hELd As cURRENT AssETs

— 19

Other investments were impaired in the amount of kEUR 4,505 (2011: kEUR 2,906).

ANNUAL REPORT2012


062

iNTEREsT ANd siMiLAR ExPENsEs — 20

interest and similar expenses pertain to affiliated companies in the amount of kEUR 1,530 (2011: kEUR 5,270) and to losses from discounting interest in the amount of kEUR 18,498 (2011: kEUR 10,417).

ExTRAORdiNARy REsULTs— 21

The merger of ZMb mobil Gmbh (formerly a wholly owned subsidiary of GPG) with GPG with retrospective effect on 1 january 2012 resulted in a merger gain in the amount of kEUR 554.

iNcOME TAx — 22

keur 2012 2011

income tax for prior periods 7,600 2,654

Tax on profit on ordinary activities 29,249 24,690

withholding tax 107 1,597

totAl iNcome tAx 36,956 28,941

ANNUAL REPORT2012

NOTEs TO ThE iNcOME sTATEMENT GAZPROM GERMANiA GMbh

063

cAsh fLOw sTATEMENT — 23

keur 2012 2011

cash receipts from:

Revenues 688,802 1,786,361

Usage fees and other revenues 6,312 5,104

interest received 25,959 28,677

Repayment of current loans granted 415,934 650,504

cash paid for:

Purchased goods, works, and services – 776,927 – 1,908,559

wages and salaries – 21,175 – 20,910

interest and finance cost – 21,118 – 23,417

Loans granted and purchase of securities – 103,011 – 748,706

Other taxes paid or received – 2,117 973

income tax paid – 35,902 – 49,300

cash flow from operating activities 176,756 – 279,273

cash receipts from operating divestments in:

intangible assets – 47

Property, plant, and equipment 10,376 25,684

dividends receipts from:

Affiliated companies 289,569 69,301

Associated companies 179,250 242,468

cash receipts from repayment of loans 18,560 100

cash receipts from disposal of non-current financial assets 14,281 465


OThER NOTEs

ANNUAL REPORT2012


064

dERivATivE fiNANciAL iNsTRUMENTs — 24

GPG is exposed to currency and interest risks through the course of ordinary business. in cases where GPG seeks to hedge risks, derivative financial instruments are used only if they are backed by funds arising from operating activities or future transactions. foreign exchange deriv-atives are generally used to hedge GbP and Usd exchange risk.

for details to the risk management system, please refer to the manage-ment report.

derivatives do not exist at the balance sheet date (2011: interest rate derivatives at fair value amounting to kEUR 1,142).

cash paid for investments in:

intangible assets – 1,398 – 551

Property, plant, and equipment – 9,072 – 19,888

Group companies / associated companies – 66,764 – 61,869

Loans granted – 84,928 – 82,403

cash flow from investing activities 349,874 173,354

dividends paid to the shareholder – 137,016 – 389,236

Proceeds from financing liabilities 118,351 409,189

change in current financing liabilities – 4,411 187,350

Repayment of loans – 645,630 – 365,246

cash flow from financing activities – 668,704 – 157,943

total cash flow – 142,074 – 263,862

cash and cash equivalents at the beginning of the period 641,242 905,104

cAsh AND cAsh equivAleNts At the eND oF the PerioD 499,168 641,242

cONTiNGENT LiAbiLiTiEs ANd OThER fiNANciAL cOMMiTMENTs

— 25

keur 31 Dec 2012

uP to 1 yeAr

BetweeN 2 AND 5 yeArs

over 5 yeArs totAl

Letters of comfort 1 10,000 – – 10,000

Payment guarantees (sureties) 114,534 10,470 14,405 139,409

Other performance obligations 24,113 79,903 94 104,110

totAl coNtiNgeNt liABilities AND other FiNANciAl commitmeNts 148,647 90,373 14,499 253,519

1 Thereof kEUR 10,000 from affiliated companies.

ANNUAL REPORT2012

OThER NOTEs GAZPROM GERMANiA GMbh

065

MANAGEMENT — 26

Managing directors in the reporting period were:

vyAchEsLAv kRUPENkOvsenior Managing director Moscow, Russian federation

ANdREy biRyULiNhead of Gas storage/Electricity Generation business areas Moscow, Russian federation

Active members of the management received remuneration in the amount of kEUR 2,243 (2011: kEUR 2,121).

Pension obligations were provided for these persons as of 31 december 2012, the present value of obligation amounting to kEUR 827 and plan assets amounting to kEUR 1,000.

The company chooses not to provide details on the remuneration of former managing directors, with reference to section 286 (4) of the German commercial code.

keur 31 Dec 2011

uP to 1 yeAr

BetweeN 2 AND 5 yeArs

over 5 yeArs totAl

Letters of comfort 1 10,000 – 11,277 21,277

Payment guarantees (sureties) 1 86,131 – 6,301 92,432

investment commitments 8,399 – – 8,399

Other performance obligations 14,424 2,543 100 17,067

totAl coNtiNgeNt liABilities AND other FiNANciAl commitmeNts 118,954 2,543 17,678 139,175

1 Thereof kEUR 97,408 from affiliated companies.

No claims with respect to letters of comfort or payment guarantees are expected.

ANNUAL REPORT2012


066

sUPERvisORy bOARd — 27

The supervisory board comprised the following members during the financial year:

ALEksANdER MEdvEdEv chairman of the supervisory board deputy chairman of the Management committee GAZPROM and director General of Gazprom export

ANdREy AkiMOvchairman of the Management committee of jsc Gazprombank

sERGEy chELPANOv(starting from 31 May 2012)deputy director General Gazprom export

ALExANdER EfREMOvdeputy director General of Gazprom export

sERGEy EMELyANOv(until 31 May 2012) first deputy director General of Gazprom export

ANdREy kRUGLOvdeputy chairman of the Management committee of GAZPROM and director of department finance and Economics

Members of the supervisory board received the remuneration in the reporting year in the amount of kEUR 775, the same amount as in 2011.

GROUP AffiLiATiON — 28

GPG is a subsidiary of Gazprom export, which is a subsidiary of GAZPROM. GAZPROM draws up financial statements for the largest scope of consolidation. GPG is included in this scope of this consol-idation. The consolidated financial statements are available from

GAZPROM, ul. Nametkina 16, v-420, GsP-7, 117 997 Moscow, Russia. The company is registered at the Registry Office of the Russian Federation, Moscow, under № 022.726.

AUdiT fEEs — 29

The company chooses not to provide details on the audit fees, with reference to the disclosure in the notes to the consolidated financial statements of GPG Group.

ANNUAL REPORT2012

OThER NOTEs GAZPROM GERMANiA GMbh

067

interest-free loans totalling kEUR 39,961 (2011: kEUR 26,550) were granted to associated companies in the reporting year.

GPG has a line of credit from jsc Gazprombank totalling kUsd 200,000 (no utilization as of 31 december 2012).

berlin, 28 february 2013

vyAchEsLAv kRUPENkOv senior Managing director

ANdREy biRyULiNManaging director

MATERiAL POsT bALANcE shEET dATE EvENTs — 30

keur gAs sAles gAs PurchAsesother iNcome AND exPeNse

iNterest result

controlling companies 540,751 – – 30,223 –

Other GAZPROM Group companies – – 501,827 12,735 –

Affiliated companies 82,401 – 102,444 – 1,607

Associated companies 19,302 – 10,520 – 1,930

totAl mAteriAl relAteD PArty trANsActioNs 2012 642,454 – 614,791 – 17,488 3,537

controlling companies 333 – 77,793 737,660 6,474

Other GAZPROM Group companies 3,314 – 382,095 – –

Affiliated companies – – – – 2,700

joint ventures 103,442 – – –

Associated companies – – – 15,184

totAl mAteriAl trANsActioNs with relAteD PArties 2011 107,089 – 459,888 737,660 18,958

MATERiAL RELATEd PARTy TRANsAcTiONs — 31

ANNUAL REPORT2012

NOTEs TO ThE ANNUAL fiNANciAL sTATEMENTs

Material post balance sheet events did not occur.


068

AUdiTOR’s REPORT


ANNUAL REPORT2012

AUdiTOR’s REPORT

06


069

ANNUAL REPORT2012


070

we have audited the annual financial statements, comprising the balance sheet, the income statement and the notes to the financial statements, together with the bookkeeping system and the management report, of GAZPROM Germania Gmbh, berlin, for the business year from january 1 to december 31, 2012. Maintenance of the books and records and the preparation of the annual financial statements and management report in accordance with German commercial law and supplementary provisions of the articles of incorporation are the responsibility of the company’s Managing directors. Our responsibility is to express an opinion on the annual financial statements, together with the bookkeeping system and the management report, based on our audit.

we conducted our audit of the annual financial statements in accordance with section 317 hGb (“handelsgesetzbuch”: “German commercial code”) and German generally accepted standards for the audit of financial statements promulgated by the institut der wirtschaftsprüfer (institute of Public Auditors in Germany) (idw). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the annual financial statements in accordance with [German] principles of proper accounting and in the management report are detected with rea-sonable assurance. knowledge of the business activities and the economic and legal environment of the company and expectations as to possible misstatements are taken into account in the determination of audit proce-dures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the books and records, the annual financial statements and the management report are examined pri-marily on a test basis within the framework of the audit. The audit includes

assessing the accounting principles used and significant estimates made by the company’s Managing directors as well as evaluating the overall presentation of the annual financial statements and management report. we believe that our audit provides a reasonable basis for our opinion.

Our audit has not led to any reservations.

in our opinion based on the findings of our audit, the annual financial statements comply with the legal requirements and supplementary provisions of the articles of incorporation and give a true and fair view of the net assets, financial position and results of operations of the com-pany in accordance with [German] principles of proper accounting. The management report is consistent with the annual financial statements and as a whole provides a suitable view of the company’s position and suitably presents the opportunities and risks of future development.

berlin, february 28, 2013

PricewaterhousecoopersAktiengesellschaftwirtschaftsprüfungsgesellschaft

sGd. hARALd hERRMANN German Public Auditor

sGd. PPA. sTEN kUNZMANNGerman Public Auditor

AUdiTOR’s REPORT

ANNUAL REPORT2012

AUdiTOR’s REPORT GAZPROM GERMANiA GMbh

071

EqUiTy (mEUR)

PROvisiONs (mEUR)

LiABiLiTiEs (mEUR)




TOTAL AssETs (mEUR)


gAs sALEs (Twh)

2010 2011 2012



2,095.1

17.4

1,919.9

2,190.8

19.3

1,064.0

2,416.8

24.8

456.3

1,790.4

1,699.0

2,275.6

4,067.0

280.9

387.7

1,883.3

1,811.9

1,394.7

3,298.8

170.7

29.9

2,013.0

1,945.0

898.9

2,920.6

370.3

33.8

PUBLisHER




cONcEPT ANd dEsigN

PBL Milk gmbH

PROdUcTiON


PHOTO cREdiTs





AvAiLABLE AT


10117 Berlin

T +49 30 20195 152f +49 30 20195 135

[email protected]

cONTAcT







2012

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Documents

2012 ANNUAL REPORT - GAZPROM Germania · 1,394.7 3,298.8 170.7 29.9 2,013.0 1,945.0 898.9 2,920.6 370.3 33.8 PUBLisHER gAZPROM germania gmbH EdiTiNg ANd cOORdiNATiON susanne fleischer,