ENERGY FOR PEOPLE - JSC Gazprom Neft

JSC GAZPROM NEFTANNUAL REPORT2009reduced the number of leased fillingstations by one.Active implementation of the project ofcreating a single brand name “GazpromNeft” to all filling stations. In 2009387 filling stations were rebranded,including partial rebranding of 179 fillingstations where stelae were installed andtemporary banners erected.In 2009 sales through the filling stations(excluding Sibir Energy) located on theterritory of Russia grew by 3% to reach2 860 th. tons of petroleum products.Gasoline sales increased by 9% up to 2186 th. Tons while diesel sales droppedby 12% to 619 th. tons.In 2009 the Company continuedworking under the program forunification of its distribution enterprisesuntil 2010, the principal objective ofwhich is to enhance the efficiency ofGazprom Neft’s distribution network.In 2009 the Company implementedunification projects of accountingpolicies for distribution companiesconcerning accounting procedures andbudget planning.The Company has four foreigndistribution enterprises in the customs’union countries: Gazprom Neft-Kazakhstan LLP, Gazprom Neft-Tajikistan LLC, Gazprom Neft AsiaLLC in Kyrgyzia and Gazprom Neft-Belnefteprodukt FLLC in Belorussia.During 2009 they sold 1 071 th. tons ofpetroleum products.Gazprom Neft continued with the activedevelopment of projects to enter themarkets of the Yaroslavl, Ivanovo andChelyabinsk Regions through OJSCGazprom Neft-Yaroslavl and GazpromNeft-Chelyabinsk LLC. A project toenter the market of Belarus startedthrough a new subsidiary GazpromNeft-Belnefteprodukt FLLCGazprom Neft-Belnefteprodukt FLLCwas founded as a result of the propertydistribution procedure of CJSC Slavneft-Start JV with TNK-BP. Operating inBelarus after handover of the propertyis completed in 2010, the Companywill have 38 filling stations and 5 tankfarms in the region with the total amountof sales of about 150 th. tons a year.According to the 2009 long-termdevelopment strategy of petroleumproduct supply enterprises, the amountof sales by 2020 should grow to 17.7mln tons.REBRANDING OF THE FILLING STATION NETWORKAt present Gazprom Neft managesfilling station network under differentbrands. In autumn 2009 a large-scalerebranding project of the Company’snetwork of filling stations started. Thefirst filling station under the new brandwas opened in Omsk on September 4,2009. This grand project of establishinga single network of filling stations withone brand name “Gazprom Neft”envisages the renovation of morethan 1000 filling stations in 17 regionsof Russia within 2009-2011. Theinvestments in implementation of theprogram are expected to total some7 bn rubles over the period of threeyears. To date experience has shownthat, after the rebranding activities,the sales at the filling stations grew by15–20%.Comprehensive preparation activitieswere carried out before the launchof the project, including unificationof management principals andorganization of all regional GazpromNeft’s distribution companies. GazpromNeft filling stations are of several formatstandards depending on their size andfunctions. The distinctive feature ofthe stations will be the extended set ofadditional services rendered and thenational customer loyalty programs.Through the use of Gazprom Neftfuel cards a corporate system of noncashtransactions operates at thefilling stations for rendering services tobusinesses. This system also helps thecustomer calculate the money spentand the amount of petroleum productsbought, set fuel consumption limits andregister the time and place the vehicleis refilled. Thus services rendered tocorporate clients via this system area convenient and effective way ofbuying fuel.Individuals can use discount cards withfixed discount rates at Gazprom Neft’sfilling stations. In the near future underthe rebranding project the Companyplans to introduce a loyalty programfor individuals. The new system willallow customers to accrue discountsfor fuel and related goods bought:they accumulate at the clients’ cardsas a bonus. The bonus can be usedfor paying for a service or a productthat are available at Gazprom Neft’sfilling stations or at the trading unitsof the program’s partners. Whereverit is practically possible a wide rangeof additional services will be on offer:change of oil and lubricants, technicalservicing, tyre fitting, watering, carwash, additional services: from shopsand cafes to ATM’s, Internet access andso on.In November 2009 Gazprom Neftstarted a federal advertising campaignfor the “Gazprom Neft” retail brand ofits filling station network. The creativeconcept of the campaign was called49