Integrated (GRI/TCFD/SASB) Report 2024

FROM A BOLD STEP TO A GRAND JOURNEY

Integrated

Annual Report

2024

2 | 3 INTEGRATED АNNUAL REPORT 2024

Contents

About the Company 4

3 Geographical Presence 6

3 WE ARE TATNEFT 8

3 Mission 10

3 Vision 12

3 Culture Code 14

3 Company's Values 16

3 Sustainability Strategy 18

3 Business Model 20

3 Goal-Setting 22

3 Motivation 24

3 Key Indicators 26

3 Ratings and assesments 30

3 Competitions and awards 32

Strategic Report 34

3 Message from the Chairman of the Board of Directors 36

3 Message from the General Director 37

3 Sustainable Development Strategy 38

Sustainable development 42

3 Sustainable Development Management 45

3 Map of Key ESG Goals 47

3 Integration of the Sustainable Development Goals 48

3 Openness to stakeholders 49

3 UN Sustainable Development Goals Navigator 50

3 Human rights 56

Personnel 58

3 Management System 60

3 Personnel Structure 62

3 Remuneration 66

3 Employee Welfare and Social Security 70

3 Training and Development 78

3 Collective representation 84

Production Safety 88

3 Management System 92

3 Hazard identification, risk assessment,

and incident investigation 96

3 Occupational and production safety 100

3 Occupational injuries 104

Environment

and climate 108

3 The Company's Position

on Climate Change 112

3 Management System 114

3 Risk Management 117

3 Climate-Related Opportunities 120

3 Interaction on the Environmental

and Climate Agenda 122

3 Contribution to Environmental Protection 124

3 Air Emissions 127

3 Water Intake and Water Consumption 138

3 Water disposal 144

3 Waste Management 145

3 Biodiversity Preservation 149

3 Resource Efficiency 156

Promotion of social

development 164

3 Approach to Governance 168

3 Social infrastructure development 171

3 Healthy Lifestyle 176

3 Charitable Foundation 182

3 Educational ecosystem 186

3 Preservation and Development

of Cultural and Historical Legacy 196

3 Interaction with local indigenous

peoples living a traditional way of life 202

Corporate governance 204

3 Corporate Governance System 206

3 Structure of Governance and Overseeing Bodies 210

3 General Meeting of Shareholders 212

3 Board of Directors 214

3 Committees of the Board of Directors 222

3 Executive Bodies of the Company 228

3 Motivation System for Members

of Governance Bodies 230

Risks and control 232

3 Risks and control 234

3 Risk management culture 238

3 Internal Control 242

3 Control Systems Efficiency Assessment 243

3 Internal Audit 244

3 External Audit 245

3 Revision Commission 246

Business ethics 248

3 Management System 250

3 Insider Information Protection 253

3 Information Policy 256

3 Conflict of Interest 258

3 Anti-Corruption Policy 260

3 Antimonopoly Policy 263

3 Cybersecurity Policy 264

3 Information System 268

Shareholders' Equity 270

3 Authorized capital 272

3 Shareholders' Equity Structure 273

3 Yield on Securities 276

3 Shareholder and Investor Relations 278

Value chain 280

3 Investment Policy 282

3 Innovative activities 288

3 Supply Chain 298

3 Product Quality 207

3 Government Relations 313

3 Support for Development Initiatives 314

About the report 318

3 Material Topics 323

3 Public assurance of the report 326

3 Independent Practitioner,s Limited Assurance

Report (translation from Russian original) 327

3 Forward-looking statementsstatements 331

Applications 332

3 Report on compliance with principles and recommendations

оf the corporate governance code 334

3 Key Risks 356

3 List of sustainability reporting indicators 364

3 List of indicators for sustainable development reporting that reflect contributions

to national development goals 368

3 GRI сontent index 372

3 SASB Industry Standard Index (Version 2023-12) 382

3 TCFD Index 389

3 List of abbreviations 390

3 Internal documents of the Company 392

3 Contact information 393

ШМУЦ

About the Company

Geographical Presence 6

WE ARE TATNEFT 8

Mission 10

Vision 12

Culture Code 14

Company's Values 16

Sustainability Strategy 18

Business Model 20

Goal-Setting 22

Motivation 24

Key Indicators 26

Ratings and assesments 30

Competitions and awards 32

6 | 7 INTEGRATED АNNUAL REPORT 2024

Geographical Presence

GRI 2-1

PJSC TATNEFT named after V.D. Shashin and its subsidiaries (hereinafter referred to as the "Company", the "Group", or "TATNEFT") is one of the largest oil companies in Russia.

In 2025, the Company celebrates a milestone - the 75th anniversary of the establishment of the TATNEFT Production Association. The Company's oil field development divisions have over 80 years of operational experience. Its key production assets are located within the Russian Federation, primarily concentrated in the Republic of Tatarstan, ensuring efficient business infrastructure. The Company's headquarters are located in Almetyevsk, Republic of Tatarstan, Russian Federation.

The core business activities include the exploration, development, production, processing, and sale of crude oil and petroleum products. The Company is also engaged in the following areas:

8 Field development

8 Oil and gas processing

8 Petrochemicals

8 Retail sales network

8 Power generation

8 Mechanical engineering

8 Composite materials

8 Technology and engineering

8 Biotechnology

8 Tire manufacturing

The Company does not have a controlling shareholder. The sole majority shareholder is the Government of the Republic of Tatarstan, which holds 34% of the Company's charter capital.

Product Supply > Over 50 countries Shareholder Geography > Over 30 countries

KEY OIL FIELDS:

Republic of Tatarstan: Outside Tatarstan:

Romashkinskoye, Novo-Elkhovskoye, Ashalchinskoye, Bavlinskoye, Bondyuzhskoye, Pervomayskoye, Sabanchinskoye, Arkhangelskoye

Samara, Ulyanovsk, and Orenburg Regions, Nenets Autonomous Area, Republic of Kalmykia

MISSION

WE ARE

VISION

CULTURE

CODE

VALUES

STRATEGY BUSINESS

MODEL

The 3 pillars that have supported our business for many years have evolved into a bridge we use to convey the mission TATNEFT stands for. Having a solid foundation-a past woven from colossal experience and continuity-has always been essential for us.

We leverage the expertise we have accumulated to create an effective present. We work every day, take decisive actions and reach new heights to synthesize the energy of life and contribute to creating a sustainable future. This is why we are confident in every step taken and in great accomplishments that lie ahead.

TATNEFT !

EXPERIENCE

OF THE PAST

GOAL-SETTING

MOTIVATION

ENERGY

OF THE PRESENT

SUSTAINABILITY

OF THE FUTURE

a foundation directly influencing the present. The green color symbolizes the earth, the support beneath our feet and its origin in nature. The consistency of forms and their monumentality reflect commitment to traditions

the energy of life catalyzes here and now; we symbolize it with vibrant tongues of flame, endlessly flowing into one another

this is the result of our actions today, a confirmation that we are on the right path. The future is streamlined, cyclical and transparent in nature, like a Möbius strip

10 | 11 INTEGRATED АNNUAL REPORT 2024 > ABOUT THE COMPANY

2 2 2 2

Mission TOGETHER WE CREATE THE ENERGY OF LIFE

AND NEW SOLUTIONS

FOR A SUSTAINABLE FUTURE

MISSION

VISION

CULTURE CODE

We can realize the Mission only working

together.

Together with like-minded people: employees, customers, partners and shareholders.

Together with those who are ready to work hard with us, create a sustainable future for the next generations, be a leader and part of our culture

We want people to have active, conscious and healthy lives, filled with energy, lives that constantly improve. We create energy, solutions, many different products and social benefits for life, movement (activity), creativeness and happiness

We possess and constantly improve our innovative potential, strive to be a leader in creating the best, progressive, technological and breakthrough solutions and products, continuously perfect and develop our R&D efforts, encouraging the initiative and bold ideas of our employees

The sustainable Company creates a sustainable future. We create conditions making people feel happiness, understand their value, consume resources consciously and have room for self-realization and development. The Company creates a future with no threats to descendants and the prospects of the planet

VALUES

STRATEGY

ENERGY AND SOLUTIONS

8 energy in different forms

8 set of products, services and social benefits for life and development

BEST PRODUCTS

8 high quality

8 best consumer properties

NOVELTY AND INNOVATION

Culture of creativeness:

8 innovations, progressive ideas, streamlined design, new solutions

8 hard work and perseverance

RATIONALITY, AWARENESS

8 conscious production and consumption without harm to the future

IMPROVING QUALITY OF LIFE

8 better habitat

8 creation of opportunities for comprehensive personal development

CLEAN FUTURE

8 preservation of the environment, nature and climate

8 no threats to the future

BUSINESS MODEL

GOAL-SETTING

MOTIVATION

12 | 13 INTEGRATED АNNUAL REPORT 2024 > ABOUT THE COMPANY

Vision

2 WHAT DO WE WANT TO BE?

2 WHAT WILL WE DO FOR THIS?

2 HOW WILL WE ACHIEVE THIS?

MISSION

TO BE A SUSTAINABLE, HIGH-YIELDING COMPANY

TO RESPONSIBLY AND EFFICIENTLY GENERATE ENERGY AND MAKE PROMISING PRODUCTS

BY DEVELOPING THE EXISTING AND CREATING NEW BUSINESSES

BASED ON INNOVATION AND LOW-CARBON SOLUTIONS

WITH CARE FOR PEOPLE, NATURE AND THE COMMON FUTURE

VISION

CULTURE

The Vision is a connecting element between the Mission and the Strategy of the Company, which conveys the essence of strategic plans, values and meanings of the mission.

The TATNEFT Group's 2030 Strategy seeks to increase the Company's flexibility in relation to external changes and to transform business processes.

CODE

VALUES

STRATEGY

BUSINESS MODEL

GOAL-SETTING

MOTIVATION

We are building a sustainable company of the future. A constantly developing company, successful in the energy-of-the-future and other markets. «Sustainable» means a thriving, growing business on an endless horizon, giving due regard for the interests of society, the native land and nature.

We see the Group's income as a source for sustainable development, creating new benefits for employees, regions of operation and society as a whole.

The Company embeds these ideas into each unit of produced energy, in each product and solution, in each action, in order to become better itself and to lead others by its example.

We believe that energy is a basic element of life, well-being and progress of society.

Traditional energy will be in demand in the world for a long while. However, we are aware of and support the worldwide transformation of the energy market and the path towards a low-carbon future. Our task is to do our job responsibly and efficiently by offering the best products, services and solutions.

We not only develop and improve the current business lines, but also launch new points of growth, including

non-fuel businesses based on synergies, market potential and exploring the trends of the future.

We pay great attention to streamlined design and innovation, develop low-carbon technology and solutions. We create a culture of innovative thinking, ambition and creativeness.

People are the backbone of the Company and society. We trust the bold ideas and professionalism of our employees. Nature is the basis of this world. We develop the Company by maintaining a balance of public interests and a responsible attitude to nature.

INTEGRATED АNNUAL REPORT 2024 > ABOUT THE COMPANY

Culture Code

Every company goes through a journey of realizing its uniqueness through the experience of the past, traditions, culture and rich history, which serve as sources of inspiration to eventually combine in the Cultural Code.

The Republic of Tatarstan is home to numerous ethnic groups who live peacefully and respect one another. The industrial history of the region includes dozens of construction and far-reaching projects, where TATNEFT has achieved significant milestones, records and victories. All this has left a mark on the character of our people-we show leadership and are a tight-knit team focused on new

W

GENERATION

Alphα

GENERATION

0-15 2

DIGITAL IDENTITY

15-24 2

INDIVIDUAL APPROACH

2 SELF-ACTUALIZATION NEEDS

2 NEED FOR RESPECT AND RECOGNITION

VII

TECHNOLOGICAL WAVE

LINK BETWEEN ARTIFICIAL AND ORGANIC SYSTEMS

victories.

We have people who witnessed the birth of TATNEFT and who carry the experience and knowledge vital to pass on to future generations.

The Corporate Cultural Code is a key tool for uniting generations, bringing together people of different genders, ages, education levels and experiences. It guides our collective efforts toward a common goal.

The Cultural Code shapes a unique corporate spirit, helping employees feel the significance and value of their work. They can preserve and pass on the Company's unique history, culture and values to future generations.

THE CULTURE CODE OF THE COMPANY, AS THE CORE OF OUR CORPORATE CULTURE, INCLUDES:

8 fundamental values: ideas, ideals and ethical meanings shared by all employees

8 national values and spiritual traditions: respect for roots, moral guidelines the cultural heritage has shaped

8 corporate values: established behavior patterns in business and reflected in the Company's Mission and Vision, based on sustainable development principles

Z

GENERATION

Y

GENERATION

X

GENERATION

GENERATION

25-35 2

FREEDOM

AND CREATIVITY

36-50 2

SUCCESS AND BENEFIT

51-71 2

INDEPENDENCE AND PRAGMATISM

from 72 2

OPTIMISM

2 SOCIAL

NEEDS

2 NEED FOR SECURITY

2 PHYSIOLOGICAL NEEDS

ENERGY

2 OF THE GENERATION

TECHNOLOGICAL WAVE

VI

ERA OF NANOTECHNOLOGY, BIOTECHNOLOGY, SOLAR AND NUCLEAR ENERGY

V

TECHNOLOGICAL WAVE

ERA OF INFORMATIZATION AND TELECOMMUNICATIONS

IV

TECHNOLOGICAL WAVE

ERA OF OIL, AUTOMOBILES AND MASS PRODUCTION

The Culture Code of the Company

OF WINNERS

=

Company's Mission and Vision

AND CULT OF LABOR

+

Sustainable Development Goals

OF WINNERS

+

National Traditional Values

14 | 15

MISSION

VISION

CULTURE CODE

VALUES

STRATEGY

BUSINESS MODEL

GOAL-SETTING

MOTIVATION

INTEGRATED АNNUAL REPORT 2024 > ABOUT THE COMPANY

Company's Values

It is important to us that every employee takes part in the life of the Company. A highly organized corporate culture ensures that our Strategy is successfully implemented.

RESULT

The Company's values underpin the corporate culture; they serve as principles it uses in business: significant, generally accepted and shared beliefs among employees. The Company's values, as well as its Mission, Vision and Culture Code, reflect the key lines of its development and are also the foundation on which key employee competencies are created and developed.

These are almost invariable components that have a decisive influence on the behavior and activities of employees, the actualization of their needs and motives as well as their adoption of vital decisions-especially in unstable, crisis situations.

The Company's values are shaped by the individual values of its employees, its history, cultural characteristics, corporate legacy and traditions, its development priorities.

2 SAFE AND PROSPEROUS LIFE

2 OWNER MENTALITY

2 ECO-CONSCIOUSNESS

2 GROWTH OF WORK CULTURE

FUNCTIONS OF THE CORPORATE CULTURE

8 IMAGE BUILDING

8 EMPLOYEE ENGAGEMENT

8 EMPLOYEE MOTIVATION

8 TEAM MANAGEMENT

8 EASY ADAPTATION

2 SHARING THE COMPANY'S VALUES

2 WE ARE LEADERS

8 we take responsibility

personally and confidently

8 we set ambitious goals for ourselves and our team

8 we inspire the team and lead it to achieve its goals

2 WE ARE A TEAM

8 we value and support each other

8 we achieve common goals through cohesion and understanding of the role each of us has

2 WE ARE OPEN TO COOPERATION

8 we build honest and open equal relationships with external partners and peers striving for our success

8 STANDING OUT FROM COMPETITORS

8 ATTRACTIVENESS TO CLIENTS

8 INSPIRING NEW IDEAS

8 REDUCING CORPORATE RISKS

8 EMPLOYEE SELF-REALIZATION

8 GOODWILL OF THE COMPANY

8 HEALTHY ATMOSPHERE IN THE TEAM

2 WE ARE EFFICIENT

8 we aspire to achieve maximum results based on the optimal use of resources and compliance with industrial and environmental safety standards

2WE EMPLOY ADVANCED TECHNOLOGY

8 we are looking for cutting-edge scientific ideas and technology

8 we implement innovative solutions

8 we improve and use our knowledge and experience

16 | 17

MISSION

VISION

CULTURE CODE

VALUES

STRATEGY

BUSINESS MODEL

GOAL-SETTING

MOTIVATION

INTEGRATED АNNUAL REPORT 2024 > ABOUT THE COMPANY

Sustainability Strategy

MISSION AND VISION

CULTURAL CODE AND VALUES

GRI 2-22

Our stability is based on the corporate values and the principles of responsible business. The Company is committed to protecting human rights, labor rights, combating corruption, and minimizing environmental impact, as outlined in the 10 Principles of the UN Global Compact. By fostering a culture of integrity and responsibility throughout the value chain, the Company expects shareholders, partners, suppliers, and contractors to adhere to

those areas and focus of UN SDGs that it can implement as efficiently as possible by managing its capabilities and resources.

We cooperate closely with stakeholders in taking effective actions to achieve the UN SDGs and also adhere to the principle of

precaution, taking measures in advance to

2030 STRATEGY

LONG-TERM SUSTAINABILITY

CLIMATE IMPACT REDUCTION AND CARBON NEUTRALITY BY 2050 SCOPE 1 AND 2

TECHNOLOGICAL SOVEREIGNTY

PRODUCTION PROCESS INDEPENDENCE FROM IMPORT SUPPLY DISRUPTIONS

these Principles.

The Company's mission, culture, and values are in line with the 17

prevent and mitigate potential adverse consequences in all areas of business.

14%

BY 2025

30% 100%

BY 2030

UN Sustainable Development Goals. Taking into account the directions of its activity, the Company pays most of its attention to

DIVERSIFICATION

SHARE OF NON-FUEL BUSINESSES IN OPERATING PROFIT BY 2030

DEVELOPMENT OF INTERNAL INTEGRATION AND SYNERGY ENSURING VERTICAL INTEGRATION OF CORE BUSINESSES

ENSURING THE COMPANY'S SUSTAINABILITY THROUGH ACHIEVING THE SDGS

20% 50%

Priority SDGs

steady reduction of

Supported SDGs

SOCIO-ECONOMIC DEVELOPMENT

INVESTMENTS IN PRODUCTION SOCIAL INVESTMENTS

> RUB 160 bln per annum ~ RUB 20 bln per annum

environmental impact

CREATION

OF NEW JOBS

EMPLOYEE SATISFACTION

TAX PAYMENTS TO BUDGETS OF ALL LEVELS

The Company recognizes the global challenges, problems and trends related to aspects of sustainable development, adheres to the provisions of the UN Global Compact, the UN Principles for

Global goals and principles of operation are reflected in our Strategy 2030, which provides for sustainable growth and

>5 thousand

BY 2025

75% > 700 billion per year

BY 2025

Responsible Investment (PRI), the UN Sustainable Development Goals, the United Nations Environment Program (UNEP), the G20/ OECD Fundamental Principles of Corporate Governance and the Social Charter of Russian Business, the RSPP Approaches to the Formation of National Indexes of Corporate Sustainability, Responsibility and Openness for Sustainable Development.

provision of favorable economic and social conditions for business development based on the most efficient use of all types of resources and creating value for stakeholders at each stage of activity.

INVESTMENTS IN ECOLOGY AND ENVIRONMENT PURCHASES FROM LOCAL SUPPLIERS

> RUB 10 bln per annum >40%

TOTAL SHAREHOLDER RETURN

CAPITALIZATION GROWTH

USD 36 billion

BY 2030

ALIGNMENT WITH OBJECTIVES OF INDUSTRY STRATEGIES IN THE RUSSIAN FEDERATION

CONTRIBUTION TO THE ACHIEVEMENT OF THE INDUSTRY STRATEGY

18 | 19

MISSION

VISION

CULTURE CODE

VALUES

STRATEGY

BUSINESS MODEL

GOAL-SETTING

MOTIVATION

INTEGRATED АNNUAL REPORT 2024 > ABOUT THE COMPANY

Business Model

GRI 2-6, 201-1

BUSINESS MODEL FUNDAMENTALS:

OUR RESOURCES (capitals*) FINANCIAL

PJSC TATNEFT is the Group's corporate centre, which coordinates the activities of the entities forming the business segments. The Group's management is based on the unified principles

while respecting the fair interests of all participants. The Company's business model is based on the principles of responsible business conduct and creates added value by ensuring high sustainability.

OUR RESULTS (capitals*) FINANCIAL

235,8

RUB billion

of investments

170,97

484

RUB billion

254

RUB billion

of adjusted EBITDA

of free cash flow

306

RUB billion

25,2

%

of profit payable

to shareholders

ROACE

RUB billion

> 3 000

CAPEX

SOCIAL AND REPUTATIONAL

SOCIAL AND REPUTATIONAL

34,9

RUB billion

in social investments

students per year

10

children's camps

> 47 thousand

2 600

researchers

8

health resorts

employees and their children received health resort

41,9 thousand

EDUCATIONAL ECOSYSTEM TATNEFT CHARITABLE FOUNDATION

treatment and recreation in

children's health camps

people received charitable

assistance

10

active longevity centers

HUMAN

42,7

of training per worker

537

allocated to staff training

>71

HUMAN

of qualified

personnel thousand people

INTELLECTUAL

research

CREATED AND DISTRIBUTED ECONOMIC VALUE | RUB BILLION

hours

INTELLECTUAL

2 030

19

-99

-202

-742

-17

84

-905

3 493

active intellectual

RUB billion

34

specific EMV of the project

8 centers (R&D)

property items

for investments in R&D

NATURAL

16,1

of investments in environmental

NATURAL

0,45

million t of CO2-eq

OPERATIONAL

The results are shown in the Key Indicators section

RUB billion protection

OPERATIONAL

as environmental effect of activities under the program to reduce greenhouse gas

133

enterprises of TATNEFT Group

emissions

8

business lines

* Definition of capital types, as well as the list thereof, is provided under the International Integrated Reporting Framework published by the International Integrated Reporting Council (IIRC).

20 | 21

MISSION

VISION

CULTURE CODE

VALUES

STRATEGY

BUSINESS MODEL

GOAL-SETTING

MOTIVATION

INTEGRATED АNNUAL REPORT 2024 > ABOUT THE COMPANY

Goal-Setting

GRI 2-19

To achieve the 2030 Strategic Goals, the Company has set up a goal-setting and motivation system. This system covers key management personnel, middle and junior-level leaders and is directly tied to annual remuneration.

The system is based on key performance indicators (KPIs) and is implemented according to unified corporate principles:

8 ambitious target values ensuring great results;

8 evaluation of indicators in the context of risk management;

8 decomposition of strategic goals in terms of creating additional value;

8 transparent and objective mechanism for managing indicators.

THE COMPANY USES A COMPREHENSIVE AND BALANCED APPROACH TO CREATE TARGET INDICATORS, TAKING INTO ACCOUNT POSSIBLE BUSINESS DEVELOPMENT

GOAL-SETTING COVERAGE

SCENARIOS, AND INCLUDES:

8 production,

8 financial and economic,

8 objectives

of project activities,

8 quality requirements,

8 process safety.

SDG LEADERS

100%

GOAL-SETTING COVERAGE

BUSINESS LINE MANAGERS

100%

GOAL-SETTING COVERAGE

SDG 17

2030

STRATEGY

ESG GOALS

The KPI system is expanded through the integration of controlled companies into the corporate standards of the motivation system linked to KPI achievement. New assets are integrated into the KPI system on an ongoing basis, as the perimeter of the TATNEFT Group changes.

KPI ACHIEVEMENT PROGRESS BY KEY MANAGERS

Target level K=1 (100%)

0,934

0,995

0,958

0,963

0,980

2019

2020

2021 1,007

2022

2023

2024

SHARE OF TATNEFT GROUP'S ENTERPRISES

KPI SYSTEM

THE KPI SYSTEM FOCUSES ON:

8 quality of sustainable development management

8 reducing sustainability risks

8 achievement of SDG indicators

KPI achievement by key management personnel is regularly discussed by the Human Resources and Remuneration Committee and then annually reviewed by the Board of Directors.

In terms of consolidated financial indicators, in particular EBITDA and FCF, the Company exceeded its strategic goals last year. The main factors, in addition to rising energy

The Board of Directors has integrated sustainable development goals into the KPI system and decomposed them at the strategic, tactical and operational levels for key management personnel, SDG Leaders and managers responsible for achieving

the sustainable development goals. Annual remuneration depends on achievement progress for indicators among the priority sustainable development goals, such as reducing greenhouse gas emissions, increasing energy efficiency, implementing innovative projects and socially-oriented programs.

prices, are the growth in production and sales of petroleum products and the increase in the production efficiency, as well as the integration of indicators of new business areas. Additional value is created by investment projects and business diversification projects; increasing internal efficiency and improving business processes are in focus.

22 | 23

MISSION

VISION

CULTURE CODE

VALUES

STRATEGY

BUSINESS MODEL

GOAL-SETTING

MOTIVATION

INTEGRATED АNNUAL REPORT 2024 > ABOUT THE COMPANY

Motivation

Throughout its history, the Company has strived to inspire employees to complete tasks, achieve goals and propose new ideas. As motivation, we offer competitive salaries and intangible benefits. The Company provides more than 70 thousand jobs with social guarantees and opportunities for professional and personal growth.

SYSTEMATIC SALARY INDEXATION

2021 +6%

HEALTH IMPROVEMENT AND CHILDREN'S RECREATION

8

corporate health resorts

HEALTHCARE SUPPORT

8 Voluntary health insurance system

EDUCATIONAL ECOSYSTEM

6

5

11 kindergartens 7 schools

2022 +12%

2023 +12%

2024 +8%

active longevity centers

10

children's health

8 Creation of an industry for the provision of high-tech medical care

secondary vocational education institutions

higher educational institutions

2025 +14%

10 camps

20 areas of additional education

67,8

EMPLOYEE SATISFACTION

Guided by high principles of care for the working individual, alongside our production activities, we implement significant social initiatives aimed at improving the quality of life, preserving a safe and favorable environment, improving the infrastructure of cities and settlements we have business in, and supporting healthcare, education, culture and sports.

OPPORTUNITIES FOR CAREER GROWTH AND SELF-REALIZATION

> 3

thousands employees in the personnel reserve

SPORTS

43

support and development of

sports

DECENT SALARIES | RUB THOUSANDS

2022

104 115

83

72 88

59

2023 2024

average monthly salary in the region of business

average monthly salary of employees

ADVANCED BONUS SYSTEM

8 Quarterly and annual bonuses

8 KPI system

8 rewards for participation in project activities, for patents and developments

2,4

SOCIAL PAYMENTS TO EMPLOYEES

RUB billion in 2024

SOLVING HOUSING PROBLEM

> 15 000

families provided with comfortable housing under the social mortgage program

CORPORATE PENSION PROGRAM

> 19 000 pension

24 | 25

MISSION

VISION

CULTURE CODE

VALUES

STRATEGY

BUSINESS MODEL

GOAL-SETTING

MOTIVATION

26 | 27 INTEGRATED ANNUAL REPORT 2024 > ABOUT THE COMPANY

Key Indicators

SASB EM-EP-000.A; EM-RM-000.A

RF SRS 4.1

Financial performance

Profit due to shareholders, RUB billion ROACE, %

EBITDA, RUB billion Adjusted EBITDA, RUB billion

2022

2023

2024

285 2022

288 2023

306 2024

27,6

25,9

25,2

2022

2023

2024

447

475

392

2022

2023

2024

414

478

484

Free cash flow, RUB billion

Sales revenue (excluding financial services), RUB billion

Taxes and social contributions to the budget, RUB billion

Investment, RUB billion

2022

2023

2022

197

103

2023

1427

1589

2022

2023

607

579

2022

2023

184,4

287,5

2024

254

2024

2030

2024

742

2024

235,81

Operating performance

Oil production, million t

Average daily oil production, thousand barrels per day

Gas production, million m³

Average daily gas production, thousand barrels of oil equivalent per day

2022

2023

2024

29,1

28,45

27,28

2022

2023

2024

568

555

531

2022

2023

2024

871

935

921

2022 15

2023 15

2024 14

Petroleum product output, million t

Oil refining, thousand barrels per day

Gas product output

2022

2023

16,0

16,9

2022

2023

324

342

2022

2023

1,04

1,096

1 including well interventions costs

2024

17, 1

2024

341

2024

0,955

28 | 29 INTEGRATED ANNUAL REPORT 2024 > ABOUT THE COMPANY

Sustainable Development indicators

GRI 2-4

Social investments, RUB billion Contribution to occupational safety, RUB million

Staff turnover, % Social payments to employees, RUB mln

2022

2023

2024

26,9

1930

2

1099

31,7

34,9

2022

2023

2024

2712

2022

2023

2024

12

12

2022

2023

2024

1289

3334

1657

Water consumption, mln m³ Volume of recycled and reused water, million m³

Contribution to environmental protection, RUB billion Volume of gross emissions of pollutants, thousand t

2022

2023

2024

61,1 2022

61,8 2023

65,2 2024

1111

1045

1061,5

2022

2023

2024

10,8

18,9

16,1

2022

2023

2024

100,2

102,2

90,4

Carbon footprint, million tonnes CO₂-eq. Scope 1 Carbon footprint, million tonnes CO₂-eq. Scope 2

Carbon footprint, million tonnes CO₂-eq. Scope 31 Associated petroleum gas utilization rate2, %

2022

2023

2024

8,40

8,19

8,18

2022

2023

2024

5,26

5,18

5,17

2022

2023

2024

104,24

95,83

119,64

2022

2023

2024

98,09

98,13

98,29

1. The figures for 2022 and 2023 have been adjusted due to the integration of Scope 3 systems for sold product accounting and settlement automation.

2. The methodology for calculating the associated petroleum gas is disclosed on page 137.

30 | 31 INTEGRATED ANNUAL REPORT 2024 > ABOUT THE COMPANY

Ratings and assesments

Credit ratings

Уровень

Level

ESG ratings and rankings

Position

Rating 2022 2023 2024

8 social performance - 2 3

ESG-ranking December 2022 December 2023 December 2024

Position 39 3 12

Rating Environment

Employees and Society

Corporate Governance

Best Russian Employer "Platinum" "Gold" "Platinum"

FRESEARCH and PRIDEX ranking

Top 50 Headquarters of Russian Companies

office building 2 (75 Lenina St.)

Standard 43% Standard 45% Standard 52%

One of the best offices in Russia in the categories of "human-centricity" and "technological effectiveness", and also received high marks for the quality

of the building, ergonomics, environmental friendliness and strategic location

32 | 33 INTEGRATED ANNUAL REPORT 2024 > ABOUT THE COMPANY

XXVII Annual Report Competition

8 Winner in the category "Best Disclosure of ESG Information"

8 Grand Prix in the category "Best Sustainability Report"

For outstanding achievements in strengthening and developing the economic, scientific and defense potential of the Russian Federation, the Company's team was awarded the Order "For Valorous Labor"

Integrated Report 2023

XXVI Annual Report Competition

8 1st place in "Best Integrated Annual Report"

"Top 100 Goods of Russia" Competition

TatOilExpo-2024 International Specialized Exhibition

Tatarstan Petrochemical Forum International Forum HSE DAYS

8 The Company's refinery was awarded the "Leader Quality" rating

TATNEFT Group enterprises were awarded the Grand Prix in the following nominations:

8 • "Best project/technical solution in the field of ecology and industrial

safety"

8 • "Technologies and developments for enhancing oil recovery"

8 • "Best Digital Solution in Oil Production and Petrochemistry" "Best Project/Technical Solution in Improving the Efficiency of Chemical-Engineering Processes in Production"

8 Grand Prix for the developed wastewater treatment and water recycling

plant

8 leader in industrial safety. TATNEFT employees entered the TOP-10 HSE. The Company's health resorts are winners in the following nominations:

8 • Leader in wellness recreation

8 • The best institution for organizing health recreation

8 • The best mud baths

All-Russian forum "Zdravnitsa-2024"

8 • The best health resort for medical rehabilitation

8 • The best health resort for prevention of occupational diseases and

corporate health improvement

8 • The best preventive health resort

8 • The best children's health resort

8 • The best technologies of kinesiotherapy

Competitions and awards

"Filling Station of Russia" all-Russian competition

International award in the field of visual communications, architecture, industrial and product design Best for Life Design Award-2024

TATNEFT filling stations recognized as the best in the following category:

8 "Fuel Filling Station Network of the Year"

8 "Best Catering Service"

8 "The best loyalty program at filling stations"

8 "Fuel filling station of the year"

8 winner in the "Project of the Year" nomination in the category "City" - best filling stations

Competition "Leader of Competitive Procurement" 8 winner in the "Best System of Work with Suppliers" nomination

All-Russian competition of the best regional environmental protection practices "Reliable partner - Ecology" 2024

All-Russian competition "Flagships of Business: Dynamics, Responsibility, Sustainability"

ECOleader Republican Competition

8 winner in "Best educational project in the field of ecology and nature management" - the project "Olympiad of young ecologists "Clean Heritage"

8 winner in "For the climate project" nomination

Absolute leader in the competition group "Organizations and individual

entrepreneurs"

TATNEFT Group enterprises won prizes in the following nominations:

8 "Water protection"

8 "Ambient air protection"

8 "Effective waste management"

8 "The best project in the field of environmental safety"

ШМУЦ

Strategic Report

Message from the Chairman of the Board of Directors 36 Message from the General Director 37

Sustainable Development Strategy 38

36 | 37

INTEGRATED ANNUAL REPORT 2024 > STRATEGIC REPORT

Message from the Chairman of the Board of Directors

Message from

the General Director

GRI 2-22

In the context of ongoing global transformations of the world economy, the TATNEFT Group completed 2024 with positive final results. The experience and professionalism of our team allows us to overcome the most difficult challenges and consistently follow the course of increasing shareholder value.

Our stability is based on the corporate values and the principles of responsible business. The Company accepts the commitments in the field of human rights, labor, environment and anti-corrup-tion, reflected in the 10 Principles of the UN Global Compact, and strives to ensure that shareholders, partners, suppliers and contractors also adhere to these Principles, creating a culture

of integrity and responsibility.

The Company's short-term and long-term growth prospects are based on effective governance, environmental stewardship and respect for human rights in all aspects of our operations.

We constantly improve processes along the entire value chain: increasing productivity, using resources rationally and developing a culture of energy efficiency and energy saving.

The key to ensuring a sustainable future is the sustainability of our production processes and social initiatives. We strive to minimize the negative impact on nature by implementing the best

solutions and complying with environmental protection standards.

Our responsibility to future generations inspires us to continuously

search for innovative solutions that improve the efficiency of

our activities.

The Company's strategic priorities are consistent with the UN Sustainable Development Goals. We develop recycling of secondary raw materials, form a circular economy model and produce products with a minimal carbon footprint. The ecosystem of social partnership and social investment we have created lays a solid foundation for the well-being of future generations.

Dear shareholders, partners and colleagues, I sincerely thank you for your trust and support as they are the key factors in TATNEFT's success. In its turn, the Board of Directors will continue to integrate sustainable development goals into the corporate strategy, set ambitious goals for the team, creating new opportunities

for the Company's growth and the development of human resources in the industry. I am confident that together we will reach new heights and make a significant contribution to economic prosperity, environmental protection, and improving

the quality of people's lives.

The modern world is in the process of profound transformation, where geopolitical challenges and macroeconomic shifts require from us not only flexibility, but also strategic foresight.

Despite the difficulties, the TATNEFT Group has confirmed

the reliability of its business model, relying on the professionalism of the team and commitment to the principles of sustainable development.

We continued to integrate ambitious environmental and social goals into our corporate strategy, in line with the principles

of the UN Global Compact. Our Mission reflects our wish

to maintain a balance between economic efficiency and business

responsibility.

We are developing a circular economy, increasing the share of recycling, and introducing technologies for the production of products with minimal impact on the climate. The Company's efficiency is increased through digitalization of processes and rational use of resources. Our large-scale social investments in the development of the regions where we operate create the foundation for the well-being of future generations.

But we also recognize the challenges: the transition to a low-car-bon economy requires significant investment, and geopolitical instability impacts logistics. Our response is the implementation of innovations, the development of new growth opportunities, and the deep integration of responsible business principles into all processes. For us, sustainable development is not a trend,

but a duty. We minimize the man-made impact

on the environment, restore ecosystems,

and develop dialogue with local communities.

The achievements of TATNEFT are the result of the efforts of each and every one of us. Thanks to our employees for their dedication, our partners for their trust, and our investors for their support

in implementing bold ideas. I am confident that through joint efforts we will continue to transform challenges into opportunities and our resources into the energy of progress.

38 | 39

Sustainable Development Strategy

INTEGRATED ANNUAL REPORT 2024 > STRATEGIC REPORT

Management System

STRATEGIC LEVEL

The Company improves approaches to sustainability management based

on the integration of the UN Sustainable Development Goals into the Group's Development Strategy until 2030. Business solutions provide for comprehensive measures to ensure economic efficiency, transition to a low-carbon economy, minimize environmental impact, create conditions for efficient work and human development, and improve ESG risk management processes. The Strategy 2030 targeted programs are implemented through an open dialogue with the local community

and stakeholders, which improves the targeting of the Company's initiatives

and decision-making transparency.

Sustainable Development and Corporate Governance Committee of the Board of Directors

and risks related to sustainability issues

8 plans, defines goals, and coordinates measures

8 oversees the implementation of measures and the occurrence

of risks and notifies the Board of Directors accordingly

8 assesses the efficiency of the sustainable development policy,

including human rights aspects

The Board of Directors plays a key role in the sustainability strategy. The priorities of the approved Strategy are the current and long-term sustainability of the business, primarily through to such factors as: achieving technological sovereignty, developing internal integration and synergies, diversification, promoting the socio-economic development of the regions of operations.

The Strategy long-term goals remain unchanged despite the dynamic external environment. The main target indicators are increasing internal efficiency, improving financial results and ensuring the target total shareholder return, including growth of the Company's capitalization and payment of dividends at a level not lower than that established in the dividend policy.

Statement of Continued Support For the UN Global Compact

OPERATIONAL LEVEL

Director General and the Management Board

Governing Council for Sustainable Development

The Company's ambitious goal is to ensure the Group's value growth by managing the sustainable development agenda risks

and introducing efficient

transformation approaches

to achieve leadership in this area.

Incentive system for achieving the SDGs

SDG leaders and management staff

8 coordinates business-specific actions

on matters of sustainable development

8 analyzes and evaluates progress, prepares information for the SD&CG Committee concerning the results achieved, risks, and problems

8 analyzes the quality of the information disclosed

and monitors compliance with the reporting standards

8 identifies areas of responsibility within the TATNEFT Group

in the sustainable development

8 integrates sustainable development goals into key performance indicators

8 introduces a monitoring and incentive system for achieving the goals according to the management levels

8 build employees' involvement in SDG achievement

8 develop and implement measures for the approved goals

8 prepare regular milestone reporting

INDEPENDENT ASSESSMENT

Major stakeholders

8 assess the Company's socioeconomic effect

and efforts to achieve sustainable development goals

8 communicate the request for adjustment of the management approach in achieving sustainable development goals