Capital Market Story November 2017 OMV Aktiengesellschaft
OMV at a glance Integrated Clean CCS business model Operating Result1 secures resilient 2016: cash flow EUR 1.5 bn Focused and Strong Market Excellence in sustainable Downstream Oil capitalization exploiting mature Upstream…
OMV an international, integrated oil and gas company Upstream Four core regions: CEE, Norway, Middle East and Africa, Russia Production 2016: 311 kboe/d (50% oil, 50% gas) 1P reserves at year-end: 1.03 bn boe (reserves life of 9…
HSSE Safety is our top priority Safety record HSSE Highlights LTIR OMV Group 1 Successful implementation of two preventive health 0.69 programs in each country where we operate 0.52 Group-wide roll out of the Safety Culture…
Strategy in a nutshell Upstream Downstream Exploration Development Production Downstream Downstream Gas Oil Restructure and Strong cash Value over volume growth grow volume generator 6 OMV Group, Capital Market Story…
OMV delivers on strategy PORTFOLIO COST DISCIPLINE STRONG DIVIDEND RESHAPING CASH FLOW Yuzhno Russkoye deal in progress Upstream production cost Free cash flow break-even Dividend Per as planned below USD 9/boe 1 decreased to 35…
Strategic steps towards building sustainable Upstream portfolio Divestments Acquisitions Scaled down exposure in Signed acquisition of 24.99% in high-cost regions (e.g. UK Yuzhno Russkoye gas field Upstream) Signed binding asset…
Optimized Downstream portfolio Gas sales business Gas transportation business Acquired, restructured and Signed financing agreements integrated gas sales and trading for Nord Stream 2 businesses (renamed OMV Gas Reduced exposure in…
Major achievements in reshaping OMVs portfolio Sale of 30% in Sale of a 49% Sale of Divestment of Divested OMV Sale of Ashtart Rosebank; stake in Gas Aliaga OMV UK Petrol Ofisi net field in Tunisia USD 50 mn Connect Austria; terminal…
Balanced portfolio results in strong and resilient cash generation Cash generation Sources of funds in EUR bn 3.6 3.5 3bn 3.3 3.2 3.0 EUR Downstream Upstream Other (0.3) 0.0 (0.1) (0.2) (0.3) 2012 2013 2014 2015 2016…
Free cash flow after dividends of EUR 2.5 bn Organic free cash flow 1 of EUR 1 bn Sources and uses 2 of cash in 9m/2017 9m/2017 in EUR bn Strong cash flow form operating activities of EUR 2.7 bn 9m/2017 (Q3/17: EUR 0.8 bn) 4.2…
Strong Group Clean CCS Operating Result in Q3 2017 driven by Upstream and higher refining margins Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share in EUR mn to stockholders in EUR Downstream…
Significant increase in Group Operating Result Operating Result Net income attributable to Earnings Per Share in EUR mn stockholders in EUR Downstream Upstream in EUR mn Corporate & Others 758 177 247 1.35 439 489 517 169…
Strict cost discipline Upstream production cost 1 CAPEX 2 Cost-savings program 3 in USD/boe in EUR bn in EUR mn +50 (34)% -34% (39)% -39% +50 13.2 2.8 250 10.6 200 8.8 8.8 1.9 1.7 0.6 1.1 9m 2015 2016 H1 2017…
Increased cost savings target for 2017 to more than EUR 250 mn Operating cost 1 reduction Procurement optimization in EUR mn continues; over 1,000 measures 300 Delivery of EUR 200 mn New target 2 developed to date already in 2016…
2017 OMV share price performance (based to 100) 160 May 25, 2017: June 13,2017: 160 Jan 13, 2017: March 3, 2017: MoU with Closed Closing OMV Sale agreement ADNOC divestments of 150 150 (U.K.) Limited signed for OMV Petrol Ofisi…
Updated outlook for 2017 2016 Outlook 2017 Brent oil price (USD/bbl) 44 52 CEGH gas price (EUR/MWh) 15 15 Total hydrocarbon production (kboe/d) 311 330 (Previous: 330) 1 OMV indicator refining margin (USD/bbl) 4.7 4.7…
OMV Vision 2020 We are the energy for a better life Restructuring Value added growth Streamlined portfolio Upstream Integrated gas sales and Growing in low-cost regions with hydrocarbon-rich trading businesses reserves OMV Achieved…
Upstream OMV Aktiengesellschaft Wisting, Norway
Upstream activities focus on four core regions Urengoy, Russia (source Gazprom) Edvard Grieg (Lundin), Norway Schnkirchen, Austria New Zealand Core regions contribute 50 kboe/d Core region 1 CEE Core region 2 North Sea…
Upstream at a Glance Production in kboe/d Proved Reserves 1 Region 2015 2016 9m/17 mn boe CEE (Romania, Kazakhstan and Austria) 211 202 197 686 North Sea (Norway and UK) 48 71 79 139 Middle East and Africa (Tunisia, Libya, Yemen,…
Upstream Financial and operational KPIs Clean Operating Result Key figures in EUR mn 2,834 Clean Operating Result of EUR 880 mn in 9m/17 2,098 1,641 OMV produced 338 kboe/d in 9m/17; Romania and 117 40 Austria contributed close to…
OMV Upstream adjusted to the low oil price environment CAPEX (incl. capitalized E&A, incl. acquisitions) Spending profile reset to lower price environment in EUR bn CAPEX reduced to EUR 1.4 bn (9m/17: EUR 0.7 bn) 4.4 3.0 1.6 2.1…
Core region 1: CEE counter natural decline rates at reasonable costs Field development Totea Deep, Romania Beating the decline 1 at reasonable production costs 1 Production Romania, Kazakhstan, Austria in kboe/d in USD/boe (4)% 2…
Core region 2: North Sea deliver development projects and optimize portfolio Rowan Wiking rig, Edvard Grieg platform and flotel Ramp up production 1 Production cost 1 in kboe/d in USD/boe 90% 71 48 37 9 2014 2015 2016…
North Sea is a core region for OMV OMV (Norge) AS: WISTING 29 production licenses, 4 operated by OMV 1 2P reserves of 200 mn boe; 50% split between liquids and gas 9m/17 production: 79 kboe/d AASTA HANSTEEN Main interests:…
Core region 3: MEA deliver Nawara, pursue growth opportunities in Middle East OMV stays committed to Libya and Yemen 1 Production cost 1 Production in kboe/d in USD/boe 40 10 23 19 2014 2015 2016 2017 2018/19 2016 2017…
OMV operations in Libya OMV operations in Libya OMV restarted production in Murzuq and Sirte basins in 2016 Expansion of capacity OMV increased stake in four Exploration and Production Sharing Agreements in the Sirte Basin (C103,…
OMV shareholding in Pearl Petroleum Company OMV operations in Kurdistan Region of Iraq Status OMV holds a 10% stake in Pearl Petroleum Company Limited (further shareholders: Dana Gas and Crescent Petroleum 35% each, MOL and RWEST 10%…
Core region 4: Russia OMVs new core region OMV production contribution from Russian fields 1 in kboe/d 200 150 100 50 0 20172 2018 2019 2020 2021 2022 2023 2024 2025 2026 Urengoy, Russia. Source: Gazprom Achimov IV/V Yuzhno…
Asset swap between Gazprom and OMV progressing well OMVs share of Achimovs IV/V production Project status development Signing of final transaction expected in Q4 2017 Closing expected by end of 2018 in kboe/d 100 Investments 80…
Acquisition of 25% stake in Yuzhno Russkoye gas field OMV acquires 24.99% participation in Yuzhno Russkoye natural gas field from Uniper SE The purchase price amounts to USD 1.85 bn (EUR 1.75 bn1) plus cash on the balance sheet as…
Opportunities in Middle East United Arab Emirates Iran Appraisal activities in the Shuwaihat sour gas and Signed MoU with local Iranian private entity Dana Energy for condensate field finalized. cooperation in potential future…
Middle East and Russia among the lowest cost upstream regions in the world Russia Middle East Northern Europe Reserves remaining 1 977 in bn boe 401 41 Finding, Development and 31 Production cost 2 10 8 in USD/boe 1…
Upstream pipeline New ventures Exploration Appraisal Development Production & Execution Development United Arab Emirates Romania deep onshore Neptun Deep Aasta Hansteen Maari Growth Iran Black Sea (Romania, Black Sea)…
Major projects Development Production Cumulative Peak Working & Execution Project Country Type start production 1 production interest Operated FID primary year mn boe kboe/d % year Aasta Hansteen 2 Norway Gas 2018 43 18 15.0 no…
Aasta Hansteen, Norway Aasta Hansteen field Project Phase: Execution Licensees: Statoil (Operator, 51%), Wintershall (24%), OMV (15%), ConocoPhillips (10%); Includes Polarled pipeline project (OMV share 9%) Cumulative production of…
Nawara, Tunisia Nawara field Project Phase: Execution Licensees: OMV (Operator, 50%), ETAP (50%) Cumulative production 1: 40-50 mn boe of gas Production start: expected in 2018 Peak production 1: 10 kboe/d Final Investment Decision…
Neptun Deep, Black Sea, Romania Neptun Deep Project Phase: Engineering (pre-FID) Licensees: ExxonMobil (Operator, 50%), OMV Petrom (50%) Domino-1 discovery in 2012 (first offshore deep water exploration well) Preliminary estimate:…
Wisting, Norway and Shuwaihat, U.A.E. Wisting, Norway Project Phase: Appraisal Wisting Licensees: OMV (Operator, 25%), Petoro, Idemitsu (each 20%) and Statoil (35%) Estimated 50-125 mn bbl (net to OMV) total recoverable oil resources…
Strategic partnerships enable access to competitive upstream positions Long-term cooperation along the entire integrated value chain Decade-long cooperation in the Downstream Gas business Access competitive upstream assets (24.98%…
Downstream OMV Aktiengesellschaft Schwechat refinery, Austria
Mid-term outlook for European downstream oil environment Further refinery closures required to rebalance the market 1 Declining demand and growing import volumes Europe in mn t Strongest demand decline expected for gasoline 900…
Strong business integration Equity Oil Supply OMV Refineries Customers Equity oil 2016 1 Retail sales volume 2016 1 Customer allocation in % of refining capacity in % of refining capacity in % Peers 2 24% OMV 33% OMV 25%…
Superior integration leads to best in class asset utilization Best in class capacity utilization of OMV refineries Strong integration along the value chain Refinery utilization 1, in % drives best in class capacity utilization 100…
Downstream Oil strong cash generator Strong free cash flow contribution even in times of low refining margins in EUR bn 2 1 annual cash contribution without Cash flow from divestments divestments Free cash flow w/o…
Restructuring drives competitiveness Downstream Oil rolling ROACE 1, 2 (27)% Assets restructured Net assets in EUR 2012 2016 (24)% OPEX reduced Clean cash costs/refined product sales in EUR/t 2012 2016 +131% Borealis…
High value petrochemical products as superior alternative to gasoline Petrochemicals margin adds stable uplift of OMV petrochemical capacity of 2,190 kt/year USD 4/bbl to the refining margin in kt/year in USD/bbl 1 12 350 8 350…
Borealis at a glance Ownership: 36% OMV and 64% IPIC Strong contribution from Borealis OMV share of net income in EUR mn Sales of EUR 7.2 bn and a record net profit of EUR 1,107 mn in 2016 Total production capacity of 13 mn t 1 in…
Optimization of retail network and sharpened brand positioning Throughput per station Highly efficient retail network with focus on: in mn liters 4 Optimal brand positioning OMV has a multibrand strategy to address different…
OMV Petrol Ofisi divestment closed Closed divestment of OMV Petrol Ofisi to Vitol Group on June 13, 2017 Overall transaction value of EUR 1.4 bn Important step in the implementation of OMVs corporate strategy 54 OMV Group,…
Impact of OMV Petrol Ofisi sale in OMV Downstream Oil financials 2016 2016 Impact of OMV OMV Downstream OMV Downstream Oil Petrol Ofisi sale Oil excl. OMV Petrol Ofisi Total refined product sales (mn tons) 30.7 20.1 (35)% thereof…
Mid-term outlook for European downstream gas environment remains challenging EU-28 gas supply / demand balance in bcm Gas demand outlook almost flat until 2020 with slight increase from demand in the power sector replacing 523 coal…
Create lean Northwest European gas sales business Northwest Europe: Growing supply position Expand European gas sales business to monetize OMVs supply position Launched sales offensive in Germany; 31 TWh Contracted so far 19 TWh of…
Downstream Gas Gas logistics Regulator reduced gas transportation tariffs, resulting in significantly lower profit contribution of Gas Connect Austria (GCA) from 2017 onwards Gas transportation volume sold: 1,448 TWh (9m/17: 1,126…
Financials Financials 59 OMV Group, Capital Market Story (November 2017)
Financial steering framework of OMV Shareholder return and stable rating Value + Cash KPIs ROACE Free Cash Flow Focus Strength of balance sheet Growth in profitability Operational efficiency Principles Capital efficiency…
Cash flow in EUR mn 9m/17 2016 2015 2014 2013 2012 Net income 432 (183) (1,255) 527 1,729 1,790 Depreciation, amortization and impairments incl. write-ups 1,456 3,784 5,153 3,165 2,289 2,034 Change in net working capital components…
New dividend policy Dividend per share in EUR We are committed to delivering an attractive and predictable shareholder return through the 1.25 1.25 business cycle 1.20 1.20 1.10 1.00 1.00 Floor dividend of EUR 1 per share…
Credit ratings Commitment to strong investment grade credit profile enhances the Groups high level of transparency with investors June 12, 2017 May 8th, 2017 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 5.09 bn in EUR mn Gearing 1,200 Cash EUR 4.64 bn ratio 3% Net debt EUR 0.45 bn 1,000 Debt breakdown 800 Variable: 18% USD: 5% 600 400 200 EUR:…
Appendix 1 OMV Petrom OMV Aktiengesellschaft Petromar, Romania
OMV Petrom operationally integrated oil and gas company Upstream Downstream Romania Downstream Oil Proved reserves: 582 mn boe Petrobrazi refinery (4.5 mn t/yr capacity) Production: 166 kboe/d (9m/17: 161 kboe/d) Refined product…
Gas market in Romania Gas prices in Romania Prices for non-households liberalized since January 2015 in EUR/MWh Producer price for households liberalized since April 2017; 40 end-price for households still regulated 31 Gas…
Appendix 2 OMV Aktiengesellschaft
Diversified international shareholder base Shareholder structure 1 Geographical distribution of 0.4% institutional investors 1 0.2% 9.1% 8% 31.5% 19% 33% Institutional 327.3 mn investors 26.9% shares 26.9% 6% 7% 24.9%…
OMV Sustainability Strategy OMV Sustainability Strategy is based on three pillars Eco-Innovation Skills to Succeed 1 Eco-Efficiency 2 3 Efficient use of resources and Investment in research and Development the local reduction of…
OMVs Strategy for responsible business behavior A responsible business behavior is crucial for OMV to create a win-win situation secure gain attract for society, the environment social acceptance access to best employees, and the…
ESG1 performance OMV has in 2017 again achieved a score A- (leadership) for both CDPs Climate and Water. OMV is among the best in the global oil and gas sector, is the index/sector leader in Austria for climate change score and is the…
Contact Investor Relations Florian Stefania Eric Oana Barbara Nicolas Vlad Christa Gloria Greger Barbuceanu Schmiedchen Goje Krappinger Tegelmann Alexandru Hanreich Kaluza Head of Deputy Head Investor Investor Investor Investor…
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