PAVING THE

WAY FORWARD
—
Pedro Parente, CEO
May 16, 2018
Disclaimer
—
The presentation may contain forward-looking statements about future events In addition, this presentation also contains certain financial measures that are
within the meaning of Section 27A of the Securities Act of 1933, as amended, and not recognized under Brazilian GAAP or IFRS. These measures do not have
Section 21E of the Securities Exchange Act of 1934, as amended, that are not standardized meanings and may not be comparable to similarly-titled measures
based on historical facts and are not assurances of future results. Such forward- provided by other companies. We are providing these measures because we use
looking statements merely reflect the Company’s current views and estimates of them as a measure of company performance; they should not be considered in
future economic circumstances, industry conditions, company performance and isolation or as a substitute for other financial measures that have been disclosed
financial results. Such terms as "anticipate", "believe", "expect", "forecast", in accordance with Brazilian GAAP or IFRS.
"intend", "plan", "project", "seek", "should", along with similar or analogous
expressions, are used to identify such forward-looking statements. Readers are
cautioned that these statements are only projections and may differ materially
from actual future results or events. Readers are referred to the documents filed
by the Company with the SEC, specifically the Company’s most recent Annual
Report on Form 20-F, which identify important risk factors that could cause NON-SEC COMPLIANT OIL AND GAS RESERVES:
actual results to differ from those contained in the forward-looking statements,
CAUTIONARY STATEMENT FOR US INVESTORS
including, among other things, risks relating to general economic and business
conditions, including crude oil and other commodity prices, refining margins and
We present certain data in this presentation, such as oil and
prevailing exchange rates, uncertainties inherent in making estimates of our oil
gas resources, that we are not permitted to present in
and gas reserves including recently discovered oil and gas reserves, international
documents filed with the United States Securities and
and Brazilian political, economic and social developments, receipt of
governmental approvals and licenses and our ability to obtain financing.
Exchange Commission (SEC) under new Subpart 1200 to
We undertake no obligation to publicly update or revise any forward-looking Regulation S-K because such terms do not qualify as proved,
statements, whether as a result of new information or future events or for any probable or possible reserves under Rule 4-10(a) of
other reason. Figures for 2018 on are estimates or targets. Regulation S-X.
All forward-looking statements are expressly qualified in their entirety by this
cautionary statement, and you should not place reliance on any forward-looking
statement contained in this presentation.

2
FIRST QUARTER 2018
BEST RESULT
IN R$ SINCE 2013
51% NET INCOME
YoY US$ 2.1 BILLION

3
Quarterly distribution of

DIVIDENDS
APPROVED BY THE BOARD OF DIRECTORS

Payment R$ 0.05
in May per share

4
Net debt dropped US$ 21 billion and free cash flow
increased by US$ 33 billion
—
106
95 Debt reduction
100
96 US$ 21 billion
72 85
Net debt
55
42
37

21
US$ billion

15 12 14 Free cash flow

9
4

5 Turnaround of
0 -2 US$ 33 billion
-10 -8 -8
-15 -13
-19
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017
5
 Top metrics are being met
—
• Commitment to life Total Recordable Injury Frequency Rate
(TRI) Achieved 2
• Consistent reduction of 2.15 years ahead
SAFETY injury rate 1.69
1.83
1.65 of schedule
Total Recordable Injury Frequency Rate (TRI) 1.29 1.17
1.05 1.06 1.03 0.95
• Improvement in safety
BMP 18-22
avoided around 2,000
2.24Q15
1.0 in 2018
people being injured in the
last two years 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Net Debt / Adjusted Ebitda

• Production predictability
5.1 4.8 Class action agreement
• Competitive Prices 4.3
FINANCIAL 3.9
3.5 3.2 3.2
3.2
3.7 3.5
Net Debt / Adjusted Ebitda • Opex efficiency
BMP* 18-22 • Capex efficiency
5.14Q15
2.5 in 2018
• Partnerships and 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
divestment

* BMP = Business Management Plan 6

And results improved
— US$ Billion US$ Billion
4Q15 1Q18

Sales Revenue 22.1 23.0

Gross Profit 7.0 8.3

Adjusted EBITDA 4.4 7.9

Net Income -9.4 2.1

Free Cash Flow 1.9 4.0

7
Production targets consistently achieved in the last 3 years
—
2017 Oil Brazil Gas Pre-salt oil
Total
Production 2.15 3.2 1.29 production
Records Mbbl/d Bcf MMbbl/d 3.5 outlook

2.9 Oil Brazil

2.8 2.8 2.8 outlook
2.7
2.6 2.6 2.6
2.5 2.5 2.5
2.4
Oil + gas
abroad
Gas Brazil

Oil Brazil 2.1 2.1 2.2 2.1*

1.9 2.0 2.0 2.0 2.0 1.9 2.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

TARGET MET FOR 3 CONSECUTIVE YEARS

8
Along with an adequate pricing policy in Brazil
—
100

Gasoline
Market
75
share
86%
US$/barrel

50

100

Diesel
Market
75
share
79%
50

Jan/2017 Apr/2017 Jul/2017 Oct/2017 Jan/2018

Petrobras gasoline price in Brazil Gasoline price in Europe

Petrobras diesel price in Brazil Diesel Price in US Gulf

9
 A strong opex optimization was implemented
—
Opex 2014-2018 Opex 2018-2022

Optimization in the Business

13% 15% and Management Plan 18-22

33% 10% decrease in oil and gas

715 394
38% •
lifting cost*
-45%
31% US$ billion US$ billion
35% • 13% decrease in refining costs*

14%
2% 16% 3%

Feedstock
Government take
Other
Manageable operating expenses
Depreciation

* Average of the business plan compared to incurred costs in 2017

10
And capex was steered towards upstream investments
—
Capex 2014-2018 Capex 2018-2022 Capex (US$ bi)
48
43 43 43
1% 1% 37
18% 18
25% 21 19 18 11 23

221 75
4 16 15
30 26 2 3
-66% 21 23 25 19 14 12
US$ billion US$ billion
2010 2011 2012 2013 2014 2015 2016 2017
74%
81%

E&P share of total Capex

83% 85% 82%

Exploration and Production 62% 69%
53% 57%
49%
Refining and Natural Gas
Other segments
2010 2011 2012 2013 2014 2015 2016 2017

11
Pre-salt: standardization, cost optimization and fast track
—
LULA & CERNAMBI BÚZIOS MERO BERBIGÃO

CONCESSION TRANSFER OF RIGHTS PRODUCTION SHARING

ATAPU

PARQUE DAS
BALEIAS

SEPIA

The first unit already leased

The last two platforms First oil in April 2018
and the second ITAPU
will be installed in 2018 4 more units by 2021
under procurement

Leased platforms Owned standardized platforms Onstream

12
 A worldwide competitive portfolio

— TYPICAL
PRE-SALT
120 OPEC
PROJECT US Nigeria

100
Breakeven (US$/bbl Brent)

80

60

40
Other Non-
OPEC deepwater
20 Brazil
deepwater
Shallow water 0
Deep water
Onshore conventional
US Tight Oil
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Canadian Oil Sands Crude + NGL production in 2017 (MM bpd)

Sources: Woodmac Pre-FID (Final Investment Decision) Breakevens 13

Increased focus on partnerships in upstream
—
Strategic
Production from assets in partnership (MMboe/d)
partnerships to
unlock value of
existing assets 1800
1600
1400
1200
SHARING DEVELOPING GENERATING
RISKS TOGETHER VALUE 1000
800
600
400
200
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Petrobras share Partners share

14
A new business model in downstream
—
INTEGRATED LOGISTICS AND
GEOGRAPHIC CLUSTERS TRANSFER OF CONTROL
REFINING

• New operators
NORTHEAST
430 mbpd • Partial control premium
15 pipelines
5 terminals • Capture of operational results
upsides
Refineries Pipelines Terminals

PARTNER
• Access to regional market
60% 40%
• Integrated margin capture
SOUTH Operator
416 mbpd 100%
9 pipelines Pipelines
7 terminals Refineries Refineries and associated logistics assets

15
A strong paced divestment program
—
Non-binding Signed
Teaser Binding phase 2018 closings
phase Contracts*

Pasadena Refinery
Cashed-in by
Shallow-water fields
(RJ, SP and SE)
May 2018:
Onshore fields US$ 3 billion
(RN and BA)
Petrobras Oil & Gas B.V.
Azulão
(“POGBV”)
Piranema and
Suape e Citepe
Piranema Sul Fields
Downstream
TAG (90%) São Martinho
South Cluster (60%)
Downstream
BSBIOS Fertilizer sector Liquigás (Fine)
Northeast Cluster (60%)
Shallow-water fields
Baúna Field Maromba Field Carcará (2nd installment)
(CE and RN)
Tartaruga Verde e Mestiça and Onshore fields Roncador Field (25%)
Paraguay Assets Lapa and Iara
Module 3 Espadarte Fields (50%) (RN, SE and CE) US$ 2.9 billion

16
With an active debt management
— PETROBRAS COST OF DEBT
(LAST ISSUE X MAXIMUM)

Amortization Schedule Duration Last Maximum

25 4.87% p.y. 15.9% p.y.

Revolving 5 years
(05/22/17) (09/29/15)
credit facilities
US$ 5.0 billion 5.95% p.y. 14.4% p.y.
20 10/11 years
(02/01/18) (01/20/16)
7.0% p.y. 13.2% p.y.
30 years
(05/22/17) (02/11/16)
Cash available 15
on 05/03/2018
US$ 19.8 12/31/2015 Ratio 1Q17 1Q18
10
billion 05/01/2018
Average interest
6.2 6.2
rate (% py)
5
Average
Duration 7.61 9.26
(years)
0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Leverage (%) 54 49

17
Compliance and governance rules embedded in the bylaws
—
Statutory committees guarantee a compliant Market recognition
and efficient decision making process • Joined Level 2 of governance of B3
Board of Directors Statutory technical • Material weaknesses eliminated from
committees committees reports
The Board is supported by six Technical committees add • 8th largest O&G company in market cap
committees accountability and transparency

US$ 16.21
PBR NYSE (US$) 05/10/18
16
14
12
• Commitment to safety
Cultural changes • Workforce succession and planning
10
8 115% CAGR
on every driven by meritocracy 6
4
US$ 2.90
company level • Open dialog channels to all 2
0
02/11/16
employees 2015 2016 2017 2018

* Source: Bloomberg 18
What´s next?
—

Reach leverage Develop new Transition to a Add value through

close to our peers technologies low carbon digital transformation
focused on cost economy
reduction

19
Thank you.
—
Pedro Parente, CEO
May 16, 2018