OMV CAPITAL MARKET STORY November 2019 OMV Aktiengesellschaft
OMV The energy for a better life Ready for a changing and volatile world HSSE Top priority Safety first Aim for ZERO harm NO losses Financial Integrated portfolio across the value chain stability Balanced regional footprint…
One integrated company Two strong pillars UPSTREAM Balanced core regions DOWNSTREAM OIL Top European refiner Central Eastern Europe 17.8 mn t refining and Middle East and Africa 2.5 mn t petrochemical capacity in Europe North Sea…
OMVs value proposition Well positioned for rewarding shareholders ROACE Integrated and balanced 2018, Clean CCS figure Integrated and balanced portfolio of Upstream and 2015 Downstream assets provide resilient cash generation 13% 8%…
OMV Strategy In a nutshell Profitable growth Expand integrated portfolio Clean CCS Operating Result Leverage on proven concept of EUR 4 bn in 2020 and integration EUR 5 bn in 2025 Significantly internationalize ROACE target 12% mid-…
Delivering on targets Record clean CCS Operating Result in 2018 Clean CCS Operating Result Clean CCS ROACE EUR bn % 3.6 14 13 Target 3.0 12% 2.0 1.2 8 1.7 7 1.5 0.1 0.0 1.5 1.5 1.8 1.6 2015 2016 2017 2018 2015 2016…
A new level of sustainable cash generation and potential for increase above EUR 5 bn mid-term Cash generation 1 and oil price development Sources of funds, EUR bn Growth Turnaround 5.0 4.3 3.9 3.3 3.2 3.0 Downstream 99 72 Oil…
Strong performance in the first nine months of 2019 Clean CCS net income attributable Cash flow from operating activities Clean CCS Operating Result EUR mn to stockholders excl. working capital change EUR mn EUR mn Upstream Corporate…
Active portfolio management towards higher returns Major divestments Major acquisitions Divested high cost and capex Established Russia as an Upstream core intensive OMV UK region Sold minority stake in regulated Established an…
Clear commitment to digitalization Initiatives across the entire group driving efficiency and growth Selected digitalization infinitives Size of Investment () Real-time Growth Digital Rig Digital Oilfield of the Future 100 Mio…
Upstream Improved portfolio, lower cost Production volume Production cost Kboe/d USD/boe +59% +59% -49% (49)% 481 13.2 427 Asia-Pacific MEA 10.6 348 311 8.8 303 North Sea 7.0 6.7 Russia CEE 2015 2016 2017 2018…
Successful strategy execution in Upstream Developed Asia-Pacific Expanded footprint in New Zealand by increasing stake in existing into core region producing assets Partnered with Sapuras upstream business in Malaysia Platform for…
Strong project pipeline for further production growth SapuraOMV Upstream Production growth Achimov 4A/5A Kboe/d SARB and Umm Lulu Upside: Neptun Aasta Hansteen SapuraOMV Upstream 600 SARB and Umm Lulu Nawara SapuraOMV…
Downstream Upgrading European refining assets European market OMV European production 2016 - 2025 volume 2025 Change 2025 volumes Up to EUR 1 bn planned investments for upgrades in 2018 - 2025 +12% 2.8 mn t Increase production of…
Excellently positioned for IMO 2020 to capture upside No investment required Positioned to capture significant upside Middle Heavy fuel No refinery Balanced distillate yield oil yield turnaround sour/sweet in 2019 and 2020 crude slate…
OMV and ADNOC form a strategic downstream partnership Decisive step to deliver OMV Strategy 2025 OMV acquired a 15% interest in ADNOC Refining and in a to-be-established Trading Joint Venture (ADNOC 65%, ENI 20%) OMV is a strategic…
Benefitting from an integrated position in Abu Dhabi OMVs integrated value chain in Abu Dhabi enhances profitability, increases optionality and reduces volatility Upstream Refining & Trading Petrochemicals/Polymers Sarb and Umm…
Europe needs more natural gas EU-28 gas supply and demand Billion cubic meter (bcm) OMV Strategy 2025 500 460 480 40 Increase sales volumes to 20 bcm by 2025 Import Reach 10% market share in Germany Imports 330 requirement of…
Getting ready for a sustainable economy Alternative Future feedstocks & mobility circular economy 2025 targets 1 Gas ReOil Reduce carbon intensity of EUR 500 mn operations by 19% for innovative energy solutions by 2025 Reduce…
Plastics-to-Oil: OMVs approach towards a circular economy Conversion of used plastics (PE,PP, PS) into ReOil Process synthetic crude oil, further processed in Schwechat refinery Crude Refinery/ petchem International ReOil process…
OMVs commitment to ESG best practice widely recognized Top 11 in global oil and gas Top 10% Top 11% Top 5% Top 7% Highest (Level 4) 24 Capital Market Story, November 2019
OMV is committed to the goals of the Paris Climate Change Agreement and implements climate action measures SCOPE 1 SCOPE 3 Reduce the carbon intensity of OMVs Reduce the carbon intensity of OMVs operations 1 by product portfolio 2…
Focus on disciplined organic investments Organic CAPEX EUR bn 3.1 2.0 - 2.5 2.3 Increase in 2019 organic Capex guidance reflects a strong pipeline of profitable growth projects 1.8 The guided level of EUR 2.0 to 2.5 bn per…
Healthy balance sheet with substantial gearing headroom Net debt and gearing ratio Net debt, 2018, EUR bn post-IFRS 16 Q3/19, EUR bn Gearing ratio target 30% 28% 4.9 Gearing Gearing ratio, 21% headroom at 2.6 the end of 2018,…
Funding the announced acquisitions while delivering on progressive dividend policy Sources and uses of cash (indicative figures) As of end of 2018, 3 years cumulative, EUR bn Acquisitions in 2019 15 Acquisition of share in SapuraOMV…
New capital allocation priorities Previous priorities New priorities Organic Capex 1 Organic Capex ROACE TARGET Acquisitions 2 Dividends 12% Mid- and long-term Dividends 3 Debt reduction Debt reduction 4 Acquisitions 29…
Delivering on our progressive dividend policy Record dividends in 2018 Dividend per share EUR CAGR 1.75 Record dividend of EUR 1.75 per share for 2018 +21% 1.5 (+17% vs. 2017) 1.20 We are committed to delivering an attractive and…
Upstream OMV Aktiengesellschaft
Upstream At a Glance 2018 position Norway 427 kboe/d production (9m/19: 481 kboe/d) Russia with an oil and gas split of 43:57; Romania Austria Production cost at USD 7.0/boe (9m/19: USD 6.7/boe) Kazakhstan Bulgaria Kurdistan Region…
Transformed Exploration strategy: 60% success rate in 2018 Active in Austria, Romania deep onshore, Black Sea, Norway and New Zealand 2018 biggest success Increase size and quality of E&A portfolio Iris and Hades Apply proven…
Technology drives recovery and reduces downtime Highlights Mean-time-between-failure of producing wells of over 1,600 days (Austria) Reduced number of well interventions per year from over 150,000 to below 6,000 (Romania 1) Low cost…
Transform OMV Upstream into a top digital player Project examples Drilling cockpit for real-time collaboration Latest 3D visualization technology for geological interpretation Machine learning and cloud solutions for seismic data…
Upstream strategy 2025 Renew and improve the Production volume quality of our asset base of 500 kboe/d in 2020 and 600 kboe/d in 2025 Double reserves Production cost below Extend track record of USD 8/boe operational excellence…
Strengthened reserve base 1P Reserves Reserve Replacement Rate Mn boe 3 years RRR, % 1,270 160 49 Asia-Pacific 1,146 1,030 266 MEA 116 120 North Sea 232 Russia 70 602 CEE 2016 2017 2018 2016 2017 2018 37 Capital…
Project pipeline enables growth Production growth Kboe/d…
Focus shifts to strategy execution Project pipeline Development New ventures Exploration Appraisal & Execution Abu Dhabi Austria Neptun Deep Nawara (Tunisia) Asia-Pacific Romania deep (Romania, Black SARB/Umm Lulu onshore Sea)…
Major projects Development & Execution Project Country Type Production Cum. production 1 Peak production Working interest Operated FID primary start year mn boe kboe/d % year Nawara Tunisia Gas 2019 40-50 10 50.0 by OMV 2014 Achimov…
Focus on 5 core regions North Sea Russia CEE Asia-Pacific 1 MEA OMV Upstream regions Central Eastern Europe (CEE) North Sea Middle East and Africa (MEA) Russia Asia-Pacific Growth 1 On January 31, 2019 OMV acquired a…
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Sustain value generation in Romania and Austria, realize Black Sea potential Presence in CEE Production split 9m/19 Strategic direction Kboe/d 6 25 Maximize profitable…
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Growth project in Romania Neptun Deep, Black Sea Neptun Deep Project Phase: Engineering (pre-FID) Licensees: ExxonMobil (Operator, 50%), OMV Petrom (50%) Domino-1…
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Russia Build upon huge potential Presence in Russia Production 9m/19 Strategic direction Kboe/d Realize organic growth potential 100 kboe/d from Yuzhno Russkoye over…
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Yuzhno Russkoye and Achimov 4A/5A provide OMV with stable and sustainable production OMV production contribution from Russian fields 1 Kboe/d 200 150 100 50 0 2018…
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific North Sea region Secure long-term sustainable contribution Presence in North Sea Region Production 9m/19 Strategic direction Kboe/d Aasta Hansteen on stream 85 First…
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Grow and access potential in Middle East and Africa Presence in MEA Production split 9m/19 Kboe/d 4 Strategic direction 5 22 Further ramp up Umm Lulu and SARB and…
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Abu Dhabi High-quality assets with substantial cash generation Umm Lulu and SARB 20% interest awarded in April 2018; concession valid until March, 2058 (ADNOC: 60%,…
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Growth project in Tunisia Nawara Nawara field Project Phase: Execution Licensees: OMV (Operator, 50%), ETAP (50%) Cumulative production: 40-50 mn boe of gas…
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Asia-Pacific developed into core region Production 9m/19 Kboe/d Current developments/highlights 12 Partnered with Sapuras Upstream business in Malaysia Malaysia 1…
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific OMV acquired 50% of Sapuras Upstream business Presence in Malaysia Major independent Malaysian oil and gas company Total cumulative production estimated at around 260…
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Downstream OMV Aktiengesellschaft
Downstream Oil in a nutshell Downstream Oil presence as per year-end 2018 17.8 mn t (370 kboe/d) annual refining capacity in Austria, Germany and Romania, plus 7.1 mn t (150 Czech Republic 139 kboe/d) equity capacity in UAE Slovakia…
European Downstream Oil Value Chain 2018 figures Refinery Product supply and Petrochemical/ commercial/ Crude supply production logistics retail sales Purchase of semi- Purchase of Retail finished products 1.3 mn t 1 finished…
Downstream Gas in a nutshell Downstream Gas presence 2018 position 114 TWh natural gas sales, thereof 60% equity supplied 51% share in Gas Connect Austria, the Austrian Netherlands pipeline operator 30 TWh gas storage capacities in…
Downstream Gas Value Chain 2018 figures Gas supply Gas logistics Gas marketing sales Equity production in Romania 45 TWh Gas sales to third parties Equity production 114 TWh in Norway 18 TWh Sales in Europe 1 66 TWh Equity…
Best in class refinery utilization rate and stable sales Refined product sales Retail sales mn t mn t 10.4 30.7 OMV Petrol Ofisi OMV Petrol Ofisi divested in June divested in June 8.1 23.8 2017 2017 20.3 6.3 20.1 19.8 6.0…
OMVs refining sites are operated as one integrated refinery 3 refining sites = 1 integrated refinery concept Optimize asset utilization through intermediate product exchanges Burghausen Schwechat Petrobrazi 3.8 mn t/a 9.6 mn t/a 4.5…
Continuous cost and performance programs lead to a top position in European refining benchmarking HSB Solomon Associates LLC top ranking for Schwechat and Burghausen 1 and upside for Petrobrazi Net Cash Margin Net Cash Margin Net…
Flexible crude intake in OMV refineries Sources of processed crude oil 2018 Processed crude oil quality 2018 Heavy Others 16% Libya 27% Russia 4% Austria 4% Medium Azerbaijan 6% Light 21% 21% Kazakhstan Romania…
Favorable yield structure Integrated refinery yield 1 Heavy fuel oil yield (%) 2018, % OMV vs European refineries 4 2017 13% Petrochemicals 9% 18%…
The share in Borealis is a core asset in OMV Downstream and a basis for further growth Polyolefin production capacity Mn t p.a. Borealis Borealis contribution to 6 in polyolefins globally (incl. 100% of Borouge) OMVs Clean CCS…
Downstream strategy 2025 Europe International Downstream Oil: Further strengthen Export successful European refining competitive position and petrochemical business model to Operational excellence international growth markets Shift…
Strong petrochemicals position in Europe and potential for future growth Production capacity Clean CCS Operating Result petrochemicals Mn t p.a. EUR mn 2.8 300 2.5 Butadiene and 2.3 aromatics 245 1.8 Propylene 109 104…
OMV Retail Strong brands driving value growth OMV Petrom Avanti and Diskont 65% of network 25% of network 10% of network Premium fuels; share in sales doubled since 2012 Most trusted retail brand in Perceived as most Leading shop…
Retail ambitions for the future Profitability turnaround in last 6 years Highly efficient retail stations AT average DE average Operating Result per filling station, EUR 1,000 1 Average throughput per station, mn liters 1 2 RO average…
OMV will further improve its best in class captive sales volume Refineries Sales Retail sales volume % of refining capacity Equity crude oil processed 26% Captive sales outlets % of refining capacity % 35% 9% 40% 32% 23% 49%…
OMV and ADNOC form a strategic downstream partnership Decisive step to deliver OMV Strategy 2025 OMV European Champion ADNOC Refining Middle East Champion Operations Excellence Top performing ADNOC Refining team 1st quartile European…
OMV acquires a 15% interest in ADNOC Refining and in a to-be- established Trading Joint Venture Refining capacity of 922 kbbl/d: Ruwais Refinery East: 420 kbbl/d Ruwais Refinery West: 417 kbbl/d Abu Dhabi Refinery: 85 kbbl/d Dubai…
Trading Joint Venture instrumental to optimize margins along the value chain Refinery has an excellent location to supply growth markets Trading JV to start operations as early as 2020 OMV to own a 15% stake in the Trading JV…
Fantastic platform for further profitable growth SELF-FUNDED GROWTH Profitable long-term growth pipeline Integrate in petchem Increase feedstock value chain Detailed feasibility studies for future Operational excellence projects…
Nord Stream 2: Improvement of energy security in Europe Nord Stream 2 pipeline project Natural gas pipeline from Russia to Europe across the Baltic Sea Nord Stream 1 Russia 55 bcm per year capacity Development started in 2018 and is…
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Financials OMV Aktiengesellschaft
Financial steering framework Shareholder return and strong rating Value + Cash Focus Strength of balance sheet and Growth in profitability and steady value enhancement adequate liquidity KPIs ROACE/EVA Free cash flow after…
Development of the economic environment Oil prices USD/bbl OMV indicator refining margin USD/bbl 80 75 6 5.7 5.5 69 69 5.2 63 62 5 60 68 66 4.0 62 60 59 4 3.2 40 3 Average Brent price 2 20 Average realized crude price 1 0…
Financial performance overview in EUR mn (unless otherwise stated) 9m/19 2018 2017 2016 2015 2014 Clean CCS Operating Result before depreciation 1, 2 4,521 5,304 4,909 3,693 4,117 4,749 Clean CCS Operating Result 2 2,755 3,646 2,958…
Cash flow in EUR mn 9m/19 2018 1 2017 2016 2015 2014 Net income 1,689 1,993 853 (183) (1,255) 527 Depreciation, amortization and impairments incl. write-ups 1,780 1,780 1,941 3,784 5,153 3,165 Change in net working capital components…
Full-year 2018 Clean CCS Results Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR EUR mn Upstream Corporate & Others, Consolidation Downstream 3,646 4.97 4.88…
Free cash flow of EUR 0.3 bn after record dividends and major acquisitions Sources and uses 1 in 2018 EUR bn Cash flow from operating activities increased to EUR 4.4 bn (FY/17: EUR 3.4 bn) 4.9 +0.3 4.6 Cash inflow from disposals of…
Balanced maturity profile Maturity profile 1 EUR bn 1.5 A3 Outlook stable June 28, 2019 1.0 A- Outlook stable June 7, 2018 0.5 Fitch Ratings reconfirmed rating on January 29, 2019 following the ADNOC 0.0 Refining transaction…
Funding activities of the last years Date of issue Bond Amount in EUR mn Coupon in % Maturity November 2013 Eurobond (XS0996734868) 500 1.75 fixed 11/25/2019 February 2010 Eurobond (XS0485316102) 500 4.375 fixed 02/10/2020 October…
Diversified international shareholder base Shareholder structure 1 Geographical distribution of institutional investors 1 0.4% 0.2% Consortium 6.8% 7% agreement - 31.5% Free float 18% 31% BAG & MPPH 56.4% 327.3 mn 28.8% 43.6%…
OMV has a two-tier Board structure Supervisory Board Two boards with distinctive roles: Executive Board responsible for managing the company and representing it vis vis third parties Supervisory Board responsible for monitoring and…
IFRS 16 Impact on OMV Group Income statement 2019 Cash flow statement 2019 Balance sheet EUR mn EUR mn EUR mn Capital employed 700 at Jan. 1, 2019 Depreciation 90 Net debt Operating Free 700 at Jan. 1, 2019 result 5 cash flow…
Sensitivities of OMV Group in 2019 Annual impact 1 Clean CCS Operating Operating cash flow in EUR mn Result Brent oil price (USD +1/bbl) +60 +30 OMV invoiced gas price (EUR +1/MWh) +150 +105 CEGH/NCG gas price 3 (EUR +1/MWh) +50 +25…
Outlook 2019 2018 Outlook 2019 Brent oil price (USD/bbl) 71 65 NCG gas price (EUR/MWh)…
Sustainability OMV Aktiengesellschaft
What sustainability means for us At OMV, sustainability means creating long- term value for our customers and shareholders by being innovative and an employer of choice. We conduct our business in a responsible way, respecting the…
Responsible and sensible use of oil and gas Oil is a valuable resource Oil as an energy source: when renewable energies are not available or affordable, or when a guarantee is needed that supplies are available in sufficient quantity…
Gas is an enabler for the energy transition to a lower-carbon energy system Electricity production: By switching from coal to gas immediate CO2 savings of 50%. Natural gas Transport sector: Using gas instead of gasoline emits up to…
Continuous improvement in safety performance to protect people and the environment Occupational safety Process safety 1 0.74 Peer companies 2018: 0.39 0.43 0.34 0.30 0.29 0.18 2010 2017 2018 Target 2014 2017 2018…
OMVs Sustainability Focus Areas Focus Areas Commitments Health, Safety, Zero work related fatalities Security and Stabilize Lost-Time Injury Rate at below 0.30 (per 1 million working hours) Environment Keep leading position for…
Health, Safety, Security and Environment (HSSE) The health and safety of our employees and integrity of our facilities are crucial in terms of acceptance within society. OMV acts responsibly towards the environment. COMMITMENTS…
Carbon Efficiency OMV recognizes that climate change is one of the most important global challenges. The responsibility for a solution is in the hands of the entire community and requires global action. OMV is committed to the goals…
Innovation Research and development, and use of innovative solutions are important elements in guaranteeing long-term value creation for OMV, society and the environment, as well as in ensuring our competitiveness. COMMITMENTS…
Employees OMV aims to create an environment where all employees can learn, grow, connect and work together, and are able to strike the right work-life balance. OMV strives to be an employer of choice. COMMITMENTS TARGETS 2025…
Business principles and social responsibility OMV aims to be an attractive partner and adheres to the highest ethical standards in its business conduct. OMV relies on transparency and trust in its relations with internal and external…
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