Capital Markets Story September 2016 Value creation through improved performance OMV Aktiengesellschaft
OMV at a glance Clean CCS EBIT1 Group sales 2015: 2015: EUR 23 bn EUR 1.4 bn Focused and Strong Integrated Excellence in sustainable Downstream Oil business model exploiting mature Upstream business with secures resilient…
OMV an international, integrated oil and gas company Upstream Three core regions: CEE, North Sea, Middle East and Africa Production: 303 kboe/d (50% oil, 50% gas) 1P reserves at year-end: 1.03 bn boe (reserve life of 9.3 years) 90%…
HSSE Safety is our top priority Safety record Sustainability highlights LTIR 1 OMV Group Major accident prevention policy implemented across the Group Specific training programs implemented 0.7 HSSE efforts not compromised by cost…
6m/16: Key messages Positive free cash flow after dividends 2016 CAPEX guidance reduced to EUR 2.2 bn Cost reduction ahead of schedule Rebalancing of the Upstream portfolio well on track: Sale agreement for a 30% stake in the…
6m/16: Financial performance Clean CCS EBIT Clean CCS net income Free cash flow in EUR mn attributable to stockholders in EUR mn in EUR mn 708 600 406 27 381 396 (421) (950) 6m/15 6m/16 6m/15 6m/16 6m/15 6m/16 58 40…
Ahead of schedule to reduce the cost base Operating cost 1 reduction in EUR mn 150 Delivery of EUR 100 mn 150 New target already in 2016E 50 mn EUR 100 100 100 Original target 50 100 mn EUR 0 Baseline 2015 Dec. 2016…
Portfolio developments Rosebank Sale agreement for a 30% stake in Rosebank field signed Initial payment of USD 50 mn on closing and up to USD 165 mn on FID Gazprom / OMV asset swap Negotiations regarding swap assets continuing…
Outlook for the full year 2016 Brent oil price: Annual average of USD 40/bbl expected H2/16 margins expected to be below H1/16 level; Refining: Utilization rate 90% in H2/16 European gas markets: Oversupply continues; H2/16 prices…
Strategy in a nutshell Upstream Downstream Exploration Development Production Downstream Downstream Gas Oil Restructure and Strong cash Value over volume growth grow volume generator 11 OMV Group, Capital Markets Story
Upstream Value over Focus on 3 core and selected volume growth development areas Lower cost and increase capital efficiency Achieve Reserve Replacement Rate of 100% Foster long-term strategic partnerships Maari, New Zealand…
Upstream activities will be focused Edvard Grieg (Lundin), Norway Urengoy, Russia (source Gazprom) Schnkirchen, Austria New Abu Dhabi, UAE Zealand Core regions contribute 50 kboe/d Core region 1 CEE Core region 3 MEA…
Value over volume growth in Upstream 1: Maintain base production of 300 kboe/d OMV production in kboe/d 360 Upside Russia (Achimov IV/V) potential Libya/Yemen 5-10% Base Upstream 303 300 CAPEX, production cumulative…
Middle East and Russia among the lowest cost upstream regions in the world Russia Middle East Northern Europe Reserves 719 410 remaining 1, 2 42 in bn boe Acquisition cost 2P 3 9 11 in USD/boe 2 43 Finding, development…
26% reduction of E&A expenditure in 2016 E&A expenditure EUR 450 mn of E&A expenditure in in EUR mn 2016 confirmed Lower activities across the portfolio (26)% Focus on low cost regions and near- 607 field opportunities 450 Main…
2016 CAPEX guidance reduced to EUR 2.2 bn Group CAPEX Well on track to reduce CAPEX incl. capitalized E&A, in EUR bn Focus on profitable barrels and sustainable reduction of unit CAPEX (21)% cost 2.7 Main investments in 6m/16:…
Achieve a sustainable position in Upstream with a Reserve Replacement Rate of 100% Reserve Replacement Rate (RRR) Three-year average Target: 100% 93% 87% 78% 79% 73% 2011 2012 2013 2014 2015 Reserve replenishment through…
Strategic partnerships: expand technological know-how and enable access to competitive upstream positions Close cooperation with Statoil in development projects and R&D Successful cooperation in Gudrun, Gullfaks, Edvard Grieg, and…
Asset swap between long-term strategic partner Gazprom and OMV progressing well Expected production development Project fully in line with new strategic direction Indicative production Achimov IV/V in % of plateau Upstream investment…
Downstream Gas Restructure and grow Create lean Northwest European gas volume sales business Divest up to 49% of Gas Connect Austria Minimize power activities 21 OMV Group, Capital Markets Story
Create lean Northwest European gas sales business Northwest Europe: Growing supply position Increase market share to prepare for future supply volumes Launch sales offensive in Germany; 2 bcm Target market share of 10% by 2025…
Minority divestment (up to 49%) of Gas Connect Austria Very stable return asset Regulated business with limited entrepreneurial control and diminishing strategic relevance of ownership Strong market interest Signing and…
Downstream Oil Strong cash generator Maintain strict capital and cost discipline Strengthen integrated margin Divest OMV Petrol Ofisi 24 OMV Group, Capital Markets Story
Strong cash generator Downstream Oil Strong free cash flow contribution even in times of low refining margins in EUR bn 2 1 annual cash contribution Cash flow from without divestments divestments Free cash flow w/o…
Restructuring drives competitiveness (27)% Assets restructured Downstream Oil rolling ROACE 1 Net assets in EUR 2011 2015 (17)% OPEX reduced Clean cash costs/refined product sales in EUR/t 2011 2015 +92% Borealis…
OMV Petrol Ofisi divestment in progress Generate additional cash flow through exit of non-strategic asset Despite difficult political situation in Turkey, the divestment process is progressing according to plan Information…
OMV in 2020 Sustainable resource base with improved profitability Cash: Broadly free cash flow neutral after dividends Production: 360 kboe/d including upside from Russia and Libya/Yemen Reserve Replacement Rate: 100%…
Upstream OMV Aktiengesellschaft Wisting, Norway
Upstream overview Production in kboe/d Proved Reserves 1 Exploration only Region 6m/16 2015 mn boe Exploration and CEE production (Romania and Austria) 196 202 709 North Sea (Norway and UK) 72 48 145 Middle East and Africa…
OMV Upstream asset base Clean EBIT Key figures 2015 in EUR mn 2,824 2,154 2,086 OMV produced an average of 303 kboe/d (110.4 mn 1,669 boe) and its proven reserves amounted to 1,028 mn boe 139 Around two thirds of total production…
Core 1 CEE counter natural decline rates at reasonable costs Field development Totea Deep, Romania Beating the decline at reasonable costs Production in Romania and Austria in kboe/d OPEX in USD/boe up to (23)% (4)% 1 204 202…
Core 2 North Sea deliver development projects and optimize portfolio Rowan Wiking rig, Edvard Grieg platform and flotel Ramp up production with declining production costs in kboe/d OPEX in USD/boe (35)% 24 48 37 16 2014 2015…
Core 3 MEA deliver Nawara, pursue growth opportunities in Middle East OMV stays committed to Libya and Yemen Production in kboe/d OPEX in USD/boe Upside of 40 USD 7/boe 15 11 23 2014 2015 2016 2017/18 2014 2015 2016…
Low cost growth opportunities in development areas Russia United Arab Emirates Iran Potential 24.98% participation in Ongoing appraisal activities in the Shuwaihat Appraisal and development of Band-E- Achimov IV/V deposits of the sour…
Upstream pipeline New ventures Exploration Appraisal Development Execution Production United Arab Emirates Romania deep onshore Neptun Deep Rosebank Schiehallion Maari Growth Iran Black Sea (Romania, Black Sea) (United Kingdom)…
Major projects under execution (post-FID) New ventures Exploration Appraisal Development Execution Production Production Cumulative Peak Project Working Project Country Type start production 1 production investments interest…
Schiehallion, UK Project phase: Execution Schiehallion field Licensees: BP (Op, 33.35%), OMV (11.76%), Shell (54.90%) Cumulative production of oil and associated gas: 42 mn boe Production start: 2017 Peak production: 12…
Aasta Hansteen, Norway Project phase: Execution Aasta Hansteen field Licensees: Statoil (Op, 51%), Wintershall (24%), OMV (15%), ConocoPhillips (10%); Includes Polarled pipeline project (OMV share 9%) Cumulative production of dry…
Nawara, Tunisia Project phase: Execution Nawara field Licensees: OMV (Op, 50%), ETAP (50%) Cumulative production: 40-50 mn boe of gas Production start: 2018 Peak production: 10 kboe/d To be double checked Investments: EUR 550…
Major projects under appraisal and development New ventures Exploration Appraisal Development Execution Production Production Cumulative Working Project Country Type start production 1 interest Operated primary year mn boe %…
Neptun Deep, Black Sea Romania Project phase: Neptun Deep Appraisal Licensees: ExxonMobil (Operator, 50%), OMV Petrom (50%) Domino-1 discovery in 2012 (first offshore deep water exploration well): 70.7 meters of net gas pay,…
Rosebank and Cambo Development, UK Project phase: Rosebank field Development Licensees: Chevron (Op, 40%), Suncor (30% 1), OMV (20% 1), DONG (10%) Expected cumulative production: 50-60 mn boe oil and associated gas Production…
Downstream OMV Aktiengesellschaft Schwechat refinery, Austria
Downstream Oil Facts and figures Utilization: 93% (6m/16: 81%) Refined product sales: 30.0 mn t (6m/16: 14.5 mn t) thereof petrochemicals volumes: 2.3 mn t (6m/16: 1.2 mn t) thereof retail sales volumes: 10.3 mn t (6m/16: 4.8 mn…
Mid-term outlook for European oil downstream environment remains challenging Further refinery closures required to rebalance the market 1 Declining demand and growing import volumes Europe in mn t Strongest decline expected for fuel…
Superior integration leads to high utilization rate Refinery utilization Strong integration along the value chain drives in % best in class capacity utilization 100 Crude supply optimization with a high share of equity crude (25% of…
High value petrochemical products as superior alternative to gasoline USD 3/bbl higher refining margins Strong contribution from Borealis Refining indicator and petrochemical margin in USD/bbl OMV share of net income in EUR mn 12…
Optimization of retail network and sharpened brand positioning Throughput per station Highly efficient retail network with focus on: in mn liters +15% Optimal brand positioning Two brand strategy in Austria and Romania increases…
Downstream Gas Gas logistics Stable result contribution form regulated gas transportation business in Austria (Gas Connect Austria) Gas transportation volume sold: 1,492 TWh (6m/16: 724 TWh) Average gas storage volume sold: 21 TWh…
Mid-term outlook for European gas downstream environment remains challenging EU 28 gas supply / demand balance Demand increase by 2020 is driven by gas to power in bcm potential Contracted supply will decrease significantly but will…
Decisions on asset portfolio taken Restructure gas Takeover of 100% of EconGas serves as the basis for all OMV gas sales sales business activities Divestment of Wind Park Dorobantu (Romania) in progress Minimize power Power Plant…
Financials Financials 55 OMV Group, Capital Markets Story
Financial performance overview Key financials 6m/16 6m/15 (%) in EUR mn Clean CCS EBIT 381 708 (46)% Clean CCS net income attributable to stockholders 396 600 (34)% Clean CCS Earnings Per Share (EPS), in EUR 1.21 1.84 (34)%…
Income statement summary in EUR mn 6m/16 6m/15 (%) Clean CCS net income attributable to stockholders EBIT (253) 451 n.m. in EUR mn 600 Financial result 113 69 64 Thereof Borealis 203 176 15 396 Taxes 159 (7) n.m. Net income 19…
Cash flow in EUR mn 6m/16 6m/15 Net income 19 513 Depreciation, amortization and impairments incl. write-ups 1,693 1,360 Change in net working capital components 272 (411) Other (368) (197) Cash flow from operating activities…
Sensitivities on OMV Group 2016 impact EBIT Operating cash flow in EUR mn Brent oil price +40 +35 (+USD 1/bbl) OMV indicator refining margin +100 +80 (+USD 1/bbl) EUR-USD +180 +160 (USD appreciates by 10 US cents) Note:…
Credit ratings Commitment to strong investment grade credit profile enhances the Companys high level of transparency with investors March 18, 2016 April 4, 2016 Senior unsecured: Baa1, outlook stable Senior unsecured: A-, outlook…
Funding activities of the last years Date of issue Bond Amount Coupon Maturity November 2014 Eurobond (XS1138423774) EUR 750,000,000 0.60% fix 11/19/2018 November 2013 Eurobond (XS0996734868) EUR 500,000,000 1.75% fix 11/25/2019…
Targeting a long-term gearing ratio of 30% Debt maturity profile Debt EUR 5.32 bn in EUR mn Gearing 1,200 Cash EUR 1.33 bn ratio 29% Net debt EUR 3.99 bn 1,000 Debt breakdown 800 Variable; Others; USD; 5% 21% 600 1%…
Financial priorities in a nutshell Improve shareholder return Focus on cash flow Maintain strong balance sheet 65 OMV Group, Capital Markets Story
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Appendix 1 OMV Petrom OMV Aktiengesellschaft Petromar, Romania
OMV Petrom operationally integrated oil and gas company Upstream Downstream Romania Downstream Oil Proved reserves: 625 mn boe Petrobrazi refinery (4.5 mn t capacity) Production 2015: 169.6 kboe/d (2014: 171.4 kboe/d) Refined…
Gas market in Romania Gas prices in Romania Liberalized prices for non-households starting January 2015 in EUR/MWh 1 Government decision to freeze price liberalization for 40 households until March 31, 2017; final deadline…
Appendix 2 OMV Aktiengesellschaft
Diversified international shareholder base Shareholder structure 1 Geographical distribution of institutional investors 1 0.5% 0.3% 24.9% 7% 18% Institutional investors 30% 327,272,727 25.7% 12% 31.5% shares 25.7% 7%…
OMVs strategy for responsible business behavior Eco-Innovation Investment in research and development of new technologies and energy sources to meet the challenges of tomorrow: Eco-Efficiency Hydrogen mobility Efficient use of…
SRI ratings and indices OMV remains a constituent of the FTSE4Good Global Index Series demonstrating strong environmental, social and governance practices. (July 2016) OMV is included in the Euronext-Vigeo Eurozone 120 index, the…
Contact Investor Relations Magdalena Bernhard Stefania Eric Bibiana-Maria Moll Heneis Barbuceanu Schmiedchen Puxkandl Head of Investor Deputy Head of Senior Investor Investor Relations Personal Relations Investor Relations…
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