OMV investor presentation May 2013 OMV Aktiengesellschaft
OMV an integrated, international oil and gas company All figures from 2012 Exploration and Production Worldwide activities, core countries: Romania and Austria Approx. 80% of production in EU and OECD countries Production: 303…
Exploration and Production 855 Exploration only Exploration and production 4 OMV Group, Investor Presentation
Gas and Power G&P Footprint Key KPIs 2012 TWh Sales EconGas 1 374 Petrom 52 Turkey 12 Total consolidated 437 Other KPIs Equity gas supply (OMV, Petrom) 58 CEGH trading volume 528 bcm Transport capacity sold 103.2 Storage…
Refining and Marketing R&M Footprint Key facts 2012 Efficient, streamlined western refineries Petrochemical operation with strong integration into Borealis Active in 13 markets in CEE, SEE incl. Turkey Strong retail brands and…
Strong financial performance in 2012 Clean CCS EBIT 1, in EUR mn Exploration and Production 3,407 +31% Production increase to 303 kboe/d (2011: 288): Romania and Austria stable, Libya up 2,530 Gas and Power (23)% Solid result…
Solid financial basis for growth 2012, in EUR bn 4 NWC Debt Group CAPEX 2012: reduction EUR 2.4 bn thereof 66% in E&P E&P Dividend EUR 690 mn gross working capital reduction E&P Gearing ratio down G&P from 34% to 26% G&P R&M…
Key financial indicators Gearing ratio in % 31 28 28 26 15 Key financial principles Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Long-term gearing ratio target of 30% Payout ratio and DPS 1 1.20 Maintain a strong investment grade rating 1.00…
Our strategy is simple: Grow upstream, optimize downstream Grow upstream Optimize downstream We aim to be a focused, integrated oil and gas company with improved overall profitability and strong growth in Growing Integrated…
Strategy Profitable Growth: Shifting the portfolio to E&P Asset base, in % Growing upstream E&P 35 55-60 G&P 12 Integrated gas 10-20 R&M 53 25-30 OMV OMV target Restructured portfolio 2010 portfolio 2021 oil downstream…
Profitable Growth: Main targets Stabilized production in Romania and Austria: 200-210 kboe/d until 2014 Production growth until 2016 1: 2% p.a. organic, up to 4% incl. acquisitions Upstream access for Nabucco: Caspian Region and…
Strategy delivery 2014 Stabilized production in Romania and Austria (200-210 kboe/d) Raise performance Improved competitiveness of gas marketing business short-term R&M divestments (up to EUR 1 bn) Performance improvement program (+2%…
Well on track to implement Profitable Growth: Achievements in 2012 208 kboe/d production in Romania and Austria +100% E&P project pipeline 4 major upstream transactions Largest gas discovery in OMVs history 860 MW gas-fired…
energize OMV 2% points ROACE increase in 2014 confirmed and major initiatives on track ROACE impact Date of Status percentage points finalization end 2012 Stabilize production in Austria and 2014 Romania Upstream Accelerate…
Expected ROACE impact in 2014 Impact of energize OMV on ROACE in 2014 (in % points) Already achieved in 2012: First commingling successes (additional 600 boe/d achieved in 2012) Reduce working capital Target +2% (EUR 690 mn working…
Upstream Key Initiatives 2012 Stabilize production in Romania and Accelerate production growth in Ongoing development and Austria Tunisia and Pakistan operational excellence in rest of world Facilities debottlenecked Accelerate South…
Downstream Key Initiatives 2012 Reduce working capital Optimize marketing Improve refining Reduce G&P costs Implementation of Sale of plots and low Integration and Cost reduction in G&P factoring contributed performing stations…
Romania: Gas price liberalization roadmap Planned gas price liberalization steps 1, 2 Main provisions in EUR/MWh 30 60% tax on net 3 additional 27.17 27.17 25 revenues resulting from domestic gas price 20 liberalization 15 Measures…
Exploration and Production OMV a top 30 international oil & gas company Entitlement production, 2011, kboe/d OMV E&P at a glance Supermajors 303 kboe/d in 2012 Active in 17 countries (exploration and production) 19,300 employees…
OMV E&P asset base 2.580 2.824 Key figures 2012 Clean EBIT 2.099 2.154 EUR mn 1.517 OMV produced an average of 303 kboe/d and its proven reserves amounted to 1,118 mn boe 2008 2009 2010 2011 2012 After the Arab Spring,…
Agenda 350 Grow Upstream to 350 kboe/d and beyond Develop asset base and projects Invest in exploration Secure sustainable reserve base 23 OMV Group, Investor Presentation
Strategy to grow upstream Exploit Stabilize production in the core (Romania the core Romania Raise performance and Austria) Austria short-term (2014) Drive production performance across the portfolio Grow production by 2% p.a.…
First priority Health, Safety, Security and Environment Lost Time Injury Rate 1 Improvement focus E&P group-wide -35% Visibility and Leadership 1.3 Consequence Management 0.8 Process Safety Contractor Management Incident…
Stabilize production in mature core Reduced rate of decline Highest ultimate oil recovery rates (60%) Production in Romania and Austria, kboe/d CAGR, % per year State-of-the-art oil recovery technologies Production share IOR/EOR 3 (25%…
Grow Upstream to 350 kboe/d and more Project pipeline doubled OMV production mn boe kboe/d Under appraisal Under development 900 350 303 450 430 430 150 125 450 280 September 2011 Q4/2012 2004 1 2012 2016 2021 (Capital…
Project pipeline doubled: 0.9 billion boe New ventures Exploration Appraisal Development Execution Caspian KRI 1 Domino (Black Sea) FRDs (Romania) FRDs (Romania) Middle East Black Sea FRDs (AT+ RO) FRDs (Austria) Mehar (Pakistan)…
OMV has strong technological capabilities in mature fields in complex developments World class recovery rates (60%) Fractured basement production in Yemen Combined steam flood/in-situ combustion World record Manaia well (New Zealand)…
Enabling upstream growth Top leadership in place External hires from top industry players Top internal talents developed and deployed Build strong capabilities for growth Up to 1,300 E&P professional intakes in next 4 years…
Agenda 350 Grow Upstream to 350 kboe/d and beyond Develop asset base and projects Invest in exploration Secure sustainable reserve base 31 OMV Group, Investor Presentation
Major projects under development New ventures Exploration Appraisal Development Execution Production 2P Peak Project Working Project Country Type Operated start reserves production investments interest primary year mn boe kboe/d…
Major projects under appraisal New ventures Exploration Appraisal Development Execution All figures net to OMV Production Cumulative Working Project Country Type Operated start production interest primary year mn boe % STOD 1 Oil…
Agenda 350 Grow Upstream to 350 kboe/d and beyond Develop asset base and projects Invest in exploration Secure sustainable reserve base 34 OMV Group, Investor Presentation
High impact wells 1 in 2013/14 Exploration and Production New ventures Exploration Appraisal Development Execution Exploration Apollo Spud Working Well Country Basin/Block Type 2 Operated Wisting date interest Bnna Bnna Barents…
Exploration: Focus on Black Sea and North Sea region Exploration only Exploration and production North Sea High impact wells 2013-2014 Significant Black position in 2012 Sea 101,000 km2 acreage 122 licenses 17…
Exploration Barents Sea and UK Norway: Drilling campaign in under-explored Barents Sea Up to 7 exploration wells 2013-2014 E.g., Bnna, Wisting Main & Central, Apollo UK: West of Shetland Constant exploration license turnover…
Exploration in the Black Sea Region Neptun Deep (Romania) Ukraine Domino gas discovery 3D seismic campaign near completion Russia New drilling campaign anticipated 2014: Domino-2 appraisal well and additional exploration wells…
Exploration in Australia and New Zealand Building on Zola gas discovery in Australia Bianchi-1, appraisal of well of Zola discovery, is currently drilling Palmerston-1, significant exploration well (offshore Australia), planned…
Agenda 350 Grow Upstream to 350 kboe/d and beyond Develop asset base and projects Invest in exploration Secure sustainable reserve base 42 OMV Group, Investor Presentation
OMV has a solid proven reserves life Proved Reserves/Production, 2011, years ExxonMobil 15 BG Group 14 BP 14 Total 13 11 Stable 11 11 Eni 12 10 10 10 10 10 reserve Occidental 12 life Shell 12 Chevron 12 Hess 11 Apache 11…
Improving reserve replacement ratio 1P RRR 1 target of 100% in 2016 Early indicator: 2P RRR 1 3 year average 1 year 158% 100% 97% 79% 55% 2008 2012 2016 2008 2012 target 1 Reserve Replacement Ratio. 44 OMV Group,…
Strong financial performance Production costs, in USD/boe CAGR 2008-11 OMV Peer median 16 4.4% 14 12 Strong cost management 10 -2.7% 1 8 2008 09 10 11 2012 NOPAT 2 per barrel, in USD/boe CAGR 2005-11 24 OMV more profitable…
Renewing the production portfolio 350 303 Production kboe/d 2012 2016 2021 5 Maturity Maturity, 30 35 37 New plays 35 International portfolio % of production 60 Core 70 28 17 20 Operatorship Operatorship, 50 50…
Gas and Power: Implementation of the strategic priorities is progressing Strategy Integrated gas Progress on key priorities for G&P Raise performance short-term (2014) Asset-backed trading built up CCPP Brazi (860 MW) on stream,…
Changing environment and equity gas options triggered a strategy reassessment in 2012 Traditional gas midstream 1 OMV in good position to benefit from model heavily under pressure new equity gas and attractive markets A Gas…
A EU gas market changed fundamentally market will likely continue to be oversupplied Range for contracted supply volumes incl. indigenous production EU 27+Turkey, bcm OMV expected demand forecast range Full demand forecast range High…
B Oversupply has led to decoupling of hub markets from long-term oil-indexed supply EUR/MWh Border contract tracker (mainly oil-indexed) 1 NCG Forecast uncertain Gap between oil- indexed LTC prices and 35 spot prices 30…
C OMV equity gas position likely to grow significantly Equity gas volumes of OMV are expected to increase significantly Clear role of G&P Black Sea Generate additional value compared to Domino discovery E&P direct sales by creating…
D With SEE and Turkey, OMV is active in Europes most attractive markets Nabucco West TANAP South Caucasus Gas demand by submarket Pipeline bcma Stagnating demand Growing demand 97 92 SEE: Moderate avg. 2009-11 1 2020 growth…
E OMV holds a position of strength in its core countries 2012 est, % Total market est. Position of OMV OMV Remaining market shares Strong current equity gas position (5 bcm) 34 Growth potential: Domino and potentially shale gas…
Nabucco West connecting OMVs core markets Status Transit pipelines to Available gas: 10 bcm from SD II European markets Signing of Cooperation and Equity Option Agreements with Shah Deniz II consortium Open season process…
G&P business model Regions Austria & around Romania Turkey Central portfolio optimization Integrated gas - OMV Supply G&P is covering the Equity gas Long-term whole value chain (AUT, ROM, UK) contracts Short-term (RUS, NOR)…
First power plant in Romania in operation; Turkey will follow with Samsun in H1/13 Brazi CCPP (Romania) Samsun CCPP (Turkey) 860 MW net capacity 870 MW net capacity Equity gas-fired Equity gas integration targeted, bridging with…
Refining and Marketing: European downstream market is under pressure Market growth Average refinery utilization 2012-21 (without future closures) EU-27, in % EU-27 oil product (10)% market 1 85 OMV product market 1 +5% (excl.…
Divestment of up to EUR 1 bn on track Refining Divestment of 45% stake in Bayernoil refinery by 2014 Petrobrazi: Capacity reduction from 4.5 to 4.2 mn t/y Own crude consumption reduced by 1% point Marketing Transactions completed:…
Petrobrazi modernization continuing, important milestones achieved in 2012 Target yield structure to support Petrobrazi modernization program Petrobrazi result substantially Finalization of Crude Distillation Unit in time Yield, in %…
Petrol Ofisi: Leading fuel marketing company in Turkey Profitable market leader & innovative Strongly improved performance partner for synergy creation achieved in 2012 Focused growth of retail network Clean CCS EBIT in EUR mn 3%…
Borealis a leading provider of chemical and innovative plastic solutions Borealis 1 operates two business groups, Polyolefins and Base Chemicals Net sales in 2012 increased to EUR 7.5 bn (EUR 7.1 bn in 2011) 2012 net profit stood at…
Refining and Marketing supports future growth Cash Generation vs. CAPEX 2012 Cash Generation EUR 1.1 bn cash generation CAPEX EUR 0.4 bn investments focusing on existing business EUR 0.7 bn gross working capital reduction…
Q1/13 Highlights Clean CCS EBIT in EUR mn +6% Production at 302 kboe/d, 3 kboe/d up vs. 800 851 Q1/12 although lower E&P sales Average Brent oil price at USD 113/bbl G&P benefited from new transportation 653 capacities and Brazi…
Results in Q1/13 Clean CCS net income attributable in EUR mn Q1/13 Q1/12 to stockholders in EUR mn 1 EBIT 1,261 912 38% Financial result (58) (10) n.m. Taxes (252) (276) (9)% (8)% 379 Effective tax rate 21% 31% (31)% 349 Net income…
Cash flow Q1/13 in EUR mn Q1/13 Q1/12 in EUR mn Net income 951 626 52% 0 1,414 Depreciation and 478 473 1% 478 amortization (414) 391 951 (650) 659 Other (414) (111) 275% Sources of funds 1,015 989 3% Change in net working 391…
CAPEX and EBITD 2013 Key investments in Q1/13 in EUR mn 1,737 Petrom drilling, workovers and redevelopments Field developments in Norway (Aasta Hansteen and Edvard Grieg) 946 132 568 EBITD contains EUR 440 mn one-time result…
Special items and CCS effect Q1/13 in EUR mn Q1/13 Q1/12 in EUR mn 1,261 Clean CCS EBIT 851 800 6 CCS gains/(losses) (17) 112 440 Clean EBIT 834 912 851 (17) (2) (21) 4 Personnel related costs (2) (1) Unscheduled depreciation (21)…
Exploration and Production Clean EBIT in EUR mn Q1/13 vs. Q4/12 Q1/13 vs. Q1/12 767 698 55 24 (150) 653 (143) 653 7 43 15 (10) Q4/12 Realization Volume Exploration Other Q1/13 Q1/12 Realization Volume Exploration Other Q1/13…
Exploration and Production Key Performance Indicators Hydrocarbon production (kboe/d) Q1/13 vs. Q4/12 299 305 309 301 302 Production slightly up More stable environment in Oil 157 164 168 159 163 Yemen and Libya and NGL Improved…
Exploration and Production Petrom group Hydrocarbon production (kboe/d) Q1/13 vs. Q4/12 184 182 182 183 183 Clean EBIT of EUR 323 mn up by 10%, mainly due to 90 89 88 88 89 Oil and NGL Higher realized oil price and higher gas price…
Exploration summary Q1/13 High impact drilling: Bianchi-1 appraisal well drilling Bina Bawi-4 appraisal well drilled; TD4100m; testing Jorvik Taggart Bina Bawi-5 appraisal well drilled; TD3400m; testing Other drilling: NOR:…
Gas and Power Clean EBIT in EUR mn Q1/13 vs. Q1/12 99 102 5 (14) 4 7 Q1/12 Supply, Gas logistics Power Other Q1/13 marketing and trading SMT: Lower gas margins; gas sales decreased in Petrom Gas logistics profited mainly…
Gas and Power Key Performance Indicators Gas sales volumes in TWh Q1/13 vs. Q1/12 136 129 119 Gas sales volumes up by 14% 100 89 due to higher trading Petrom sales volumes decreased by 5% Q1 /12 Q2 /12 Q3 /12 Q4 /12 Q1 /13…
Refining and Marketing Clean CCS EBIT in EUR mn Q1/13 vs. Q1/12 112 23 34 85 (30) Q1/12 Fuels Petrochemicals Marketing Q1/13 Higher refining margins due to gasoline and middle distillate spreads Higher petrochemicals…
Refining and Marketing Key Performance Indicators Refining utilization rate in % Q1/13 vs. Q1/12 97 94 93 89 89 87 86 Utilization remained on same level 79 76 West East Marketing sales volumes declined 43 Lower Borealis contribution…
Recent strategic highlights Romania and Austria: Production at 209 kboe/d in Q1/13 Neptun: 630 mcf/d estimated potential gas production (preliminary results) Final investment decision for Aasta Hansteen gas field Growing Bina Bawi…
Outlook 2013 Market environment Brent price: Above USD 100/bbl Gas market: More influenced by hub prices Romania: Gas price liberalization in implementation Refining margins: More modest levels than in 2012 Business outlook…
Overview debt structure and credit lines 1,000 Money market borrowings As of March 31, 2013: 900 Bilateral, syndicated, other loans Debt EUR 5,100 mn Eurobonds Cash EUR 2,685 mn 800 Net debt EUR 2,415 mn German Loan Notes 700…
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