OMV CAPITAL MARKET STORY June 2020 OMV Aktiengesellschaft
OMV Capital Market Story OMV at a glance Market and strategy 2015-2019 review: Active portfolio management towards returns and cash 2020: Acquisition of controlling interest in Borealis Financials, capital allocation priorities…
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 along the value chain Upstream DOWNSTREAM Downstream Gas Monomers and GAS Refining Sales channels polymers 5 core regions: CEE, Natural gas sales MEA, North Sea, OMV to increase its stake Top European…
Why invest in OMV Prospective project pipeline in Upstream focus on low-cost gas projects Growth in operating cash generation Top European refiner and strong position in Abu Dhabi benefitting from demand growth in emerging…
Multi-billion action plan to safeguard financial strength in the current challenging environment Reduce organic investments by more than 25% 1 to below EUR 1.8 bn in 2020 OMV is responding the 2 Cut costs by more than EUR 200 mn in…
OMV Capital Market Story OMV at a glance Market and strategy 2015-2019 review: Active portfolio management towards returns and cash 2020: Acquisition of controlling interest in Borealis Financials, capital allocation priorities…
Growing world population and improving living standards drive demand for oil and gas products World primary energy demand IEA World Energy Outlook 2019, Mtoe Oil and gas will remain main 17.7 sources of primary energy in the 16.3…
Petrochemicals markets with strong growth perspectives driven by economic growth and improving living standards Polyolefins 1 demand 2008 - 2028 Mt, CAGR Fast growing market: CAGR 4% until 2028, above GDP growth +3.9% 256 Asia is…
OMV Strategy 2025 presented at the Capital Markets Day in March 2018 in a nutshell Profitable growth Expand integrated portfolio Clean CCS Operating Result of Leverage on proven concept of EUR 5 bn in 2025 integration ROACE target…
The move towards a low-carbon future is embedded in the OMV Strategy 2025 More gas, More valuable Innovative less oil products, burn less technology We will increase the gas We will shift oil products We will allocate EUR 500 mn…
More gas Strong pipeline of gas projects, driving OMVs production towards the 600 kboe/d target Production, production split Kboed, % SapuraOMV Achimov 4A/5A SapuraOMV Nawara Upside: Neptun SARB and Umm Lulu 35% 43% 40% 52% 48%…
Extending the value chain towards more valuable products Acquisition of a controlling interest in Borealis OMV Upstream OMV Refining OMV Monomers Industries Borealis Monomers Borealis Polymers & Fertilizers Automotive Gas…
Plastic to Oil OMVs proprietary ReOil technology Synthetic Refinery/ Converts used plastics under moderate crude oil petchem process pressure and normal refinery operating temperatures into synthetic crude oil Synthetic crude oil…
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…
OMV Capital Market Story OMV at a glance Market and strategy 2015-2019 review: Active portfolio management towards returns and cash 2020: Acquisition of controlling interest in Borealis Financials, capital allocation priorities…
Active portfolio management towards higher returns Net acquisitions of EUR 3 bn Major divestments Major acquisitions Divested high cost and capex Established Russia as an Upstream core intensive OMV UK region Sold minority stake…
Stringent cost discipline Cost savings EUR mn 460 430 Operational efficiency in both Upstream and Downstream 330 Process optimization and harmonization Capture economies of scale and 200 strict management of overhead costs…
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…
Upstream Improved portfolio, lower cost Production volume Production cost Kboe/d USD/boe +61% +61% (50)% -50% 487 13.2 Asia-Pacific 427 MEA 10.6 348 8.8 303 311 North Sea 7.0 6.6 Russia CEE 2015 2016 2017 2018…
Internationalization of Downstream Oil Benefitting from an integrated position in UAE OMVs integrated value chain in the United Arab Emirates enhances profitability, increases optionality and reduces volatility Upstream Refining &…
OMV Capital Market Story OMV at a glance Market and strategy 2015-2019 review: Active portfolio management towards returns and cash 2020: Acquisition of controlling interest in Borealis Financials, capital allocation priorities…
OMV signs transformative agreement for increasing its share in Borealis to 75% OMV acquires additional 39% share in Borealis, increasing its share to a controlling interest of 75% Purchase price of USD 4.68 bn Purchase price will be…
Strategic rationale OMV repositions in a low-carbon world CEO Rainer Seele: We will change our portfolio towards products that are demanded in a low-carbon world 60% of plastic production expected to be based on recycled…
Borealis Leading polymer producer with a focus on innovation Key financials Market presence Employees Sales 2019 2 Leading polyolefin producer Major operations in Austria, Employees excluding JV Belgium, France, Nordics and 5.7 mt…
Borealis Technology leader with innovative solutions Innovative company Borstar 6,900 patents granted Borstar is a multi-modal proprietary and 3,000 patents technology that yields special properties and pending as of 2019 structural…
Borealis Strong profit contribution from specialties Total Sales by Specialty products in segment, 2019 Borealis margin, 2019 At-equity pro- Specialty products rata sales 1 17% EUR Fertilizers & 15% 60% ohers 9.8 bn 53%…
Borouge, the largest polyolefin site in the world benefitting from competitive feedstock and access to Asian growth markets The worlds largest integrated polyolefins complex JV between ADNOC (60%) and Borealis (40%) established in…
Well positioned for growth in cost-advantaged locations Europe Americas Middle East Belgium new PDH 1 plant in Kallo, Texas (US) Baystar JV with Total Abu Dhabi Borouge located in proximity to port of Antwerp 1,000 kt p.a ethane…
OMV to become 1 in ethylene and propylene capacity in Europe Top ethylene & propylene capacities in Europe Mn t OMVs global monomer capacity will increase by over 50% to 6.4 mn t OMV 2.0 2.0 0.7 4.7 Thereof European ethylene and DOW…
OMV extends value chain into polymers, immediately becoming one of the worlds leading producers Top 10 polyolefins capacities Globally, 2018 Mn t Extension of value chain provides a Sinopec 13.5 natural hedge against cyclicality…
OMV aims to become a significant player in circular economy Total investments of up to EUR 1 bn for innovative sustainable solutions planned until 2025 & Design for recycling & Chemical recycling Waste collection mechanical…
OMV Capital Market Story OMV at a glance Market and strategy 2015-2019 review: Active portfolio management towards returns and cash 2020: Acquisition of controlling interest in Borealis Financials, capital allocation priorities…
OMV to reach a new level of operating cash flow Illustrative OMV Operating Cash flow 5.4 excluding changes in net working capital Borealis EUR bn including 40% 1.4 4.3 dividends 3.9 4.2 from Borouge Downstream 3.2 3.0…
OMV stand alone perspective Focus on disciplined organic investments Organic CAPEX EUR bn 2020 CAPEX reduced by more than 25% to cope 3.1 with current situation CAPEX planning for 2020 2.0 - 2.5 reduced by more than 25% from 2.3…
Borealis Cash outflows related to growth mostly in 2020/21 Borealis organic Capex Borealis Organic Capex excluding leases and excluding Baystar JV Running business capex to remain EUR bn below EUR 500 mn 1.0 Growth capex in 2020/21…
OMV has a healthy balance sheet despite major acquisitions and record dividends Net debt excluding leases, Gearing ratio excluding leases EUR bn, % Long-term gearing ratio target 26% 30% excluding leases 23% 22% Q1/19 closing of…
Balanced maturity profile and strong liquidity position Maturity profile 1 End of March 2020 In May 2020 issued senior EUR bn OMV cash-position bonds, in particular for financing 1.5 the Borealis deal 2 EUR 2.8 bn EUR 1.75 bn 1.0…
Multi-billion action plan to safeguard financial strength Reduce organic investments by more than 25% in 2020 1 OMV 2020 CAPEX reduced from EUR 2.4 bn to below EUR 1.8 bn Further optimization of combined business with Borealis in…
Divestment program well underway Gas Connect Austria Ownership: OMV 51%, AS Gasinfrastruktur 49% (thereof, Allianz Group 60% and Snam 40%) Central hub in the European natural gas network Clean Operating Result in 2019 of EUR 97 mn…
Progressive dividend policy Record dividends for 2019 proposed Dividend Per Share EUR CAGR 2.00 +19% 1.75 Proposed record dividend of EUR 2.00 1 1.50 per share for 2019 (+14% vs. 2018) We are committed to delivering an 1.20…
Appendix 46 OMV Capital Market Story, June 2020
Updated outlook 2020 as published with Q1/20 results 2019 Outlook 2020 Brent oil price (USD/bbl) 64 40 (previously 60) Average realized gas price (EUR/MWh) 11.9 10…
Q1/20 Clean CCS Operating Result impacted by weaker market in Upstream, partially compensated by strong Downstream Clean CCS Operating Result Clean CCS Net Income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR…
Economic environment Sensitivities of the OMV Group results in 2020 Annual impact excl. hedging Clean CCS Operating Result Operating cash flow in EUR mn Brent oil price (USD +1/bbl) +60 +25 Realized gas price (EUR +1/MWh) +140 +90…
ESG Ratings External recognition of Best-in-Class ESG performance Member of Rated by Leadership A rating in the climate change category. OMV is one of the top 14 companies in the global oil and gas sector. since 2016 since 2018…
ESG Ratings OMVs performance relative to peers Relative rating vs industry peers top 10% top 10% top 5% top 12% SCORE 70 AAA B 2 76 3 Environmental 78 6.1 C+ 2 73 Social 66 7.4 B 2 79 Governance 67 1 6.3 B 2 76 1 Governance…
Upstream Strengthened reserve base 1P Reserves Reserve Replacement Rate Mn boe 3 years RRR, % 1,332 166 1,270 160 49 128 Asia-Pacific 1,146 1,030 266 285 MEA 116 120 122 North Sea 232 229 Russia 70 602 569 CEE 2016…
Upstream Major projects Development & Execution Project Country Type Production Cum. production Peak production Working interest Operated FID primary start year mn boe kboe/d % year Nawara Tunisia Gas 2020 40-50 10 50.0 by OMV 2014…
Downstream Oil Europe European Downstream Oil Value Chain 2019 figures Refinery Product supply and Petrochemical/ commercial/ Crude supply production logistics retail sales Purchase of other Purchase of Retail raw material 1.3…
Downstream Oil Europe Favorable yield structure European integrated refinery yield Heavy fuel oil yield (%) 2019, % OMV vs European refineries 2019 LPG, naphtha 13% (petrochemicals feedstock) 8% 17%…
Downstream Oil Europe Strong profit contribution 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…
ADNOC Refining Key facts 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 Petrochemical production: 1.7 mn t p.a. Abu Dhabi Associated…
ADNOC Refining 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…
Downstream Gas Downstream Gas Value Chain 2019 figures Gas supply Gas logistics Gas marketing sales Equity production in Romania 41 TWh Gas sales to third parties Equity production 137 TWh in Norway 26 TWh Sales in Europe…
Financing Strong credit rating A3 A- Outlook negative Outlook negative March 16, 2020 March 13, 2019 61 OMV Capital Market Story, June 2020
Financing Successful financing activities Date of issue Bond Amount in EUR mn Coupon in % Maturity May 2020 Eurobond (XS2154347293) 500 1.50 fixed 09/04/2024 May 2020 Eurobond (XS2154347707) 500 2.00 fixed 09/04/2028 May 2020 Eurobond…
Shareholders Diversified international shareholder base Shareholder structure 1 Geographical distribution of 0.4% 0.1% institutional investors 1 56.4% 7.4% Consortium 13% agreement 31.5% 30% 4% BAG & MPPH 5% 327.3 mn 5% 28.3%…
Corporate Governance OMV has a two-tier Board structure Supervisory Board Two boards with distinctive roles: Executive Board (EB) responsible for managing the company and representing it vis vis third parties Supervisory Board…
Corporate Governance Experience, skills and diversity of Supervisory Board Board Structure Analysis OMV Benchmark Comparison, July 20191 OMV 2017 OMV 2019 Change Peers' average4 Peer's min Peer's max Governance System two tier two…
Corporate Governance Clear performance criteria attached to bonus plans 2019 100% Financial targets Key elements Long Term Incentive Plan 50% Free 50% Relative Total Focus on long-term value generation Cash Flow2 Shareholder Return…
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