Capital Market Story February 2021 OMV Aktiengesellschaft
OMV at a glance Three strong pillars, integrated along the value chain Chemical Recycling Mechanical (ReOil) Recycling Exploration & Refining & Chemicals & Production Marketing Materials 5 core regions: CEE, MEA, 3 Refineries…
Integrated business model comes with resilience and stability Refinery utilization rates OMVs refining business is highly 50% OMV versus EU 16 peers integrated with its own retail Captive refining 94% business and its chemical demand…
Global footprint Strong European core and well positioned to benefit from demand in growth markets Exploration & Production 1 Integrated position in Germany: The Burghausen refinery is highly integrated with the Borealis Burghausen…
Why invest Integrated Focus on non-energy Well positioned to business model chemical products, become a leading along the value and thus transitioning player in the chain for business circular economy success in a low- carbon…
Updated strategic priorities 2025 STRATEGIC PRIORITIES FINANCIAL FRAMEWORK Transition into an integrated Clean CCS operating result of chemical company EUR 5 bn by 2025 Continue to leverage the proven Cash flow from operating…
Updated strategic priorities 2025 EXPLORATION & PRODUCTION CHEMICALS & MATERIALS REFINING & MARKETING Run portfolio for value, harvesting the cash flow Leverage Borealis as platform for chemicals growth Maintain production corridor…
OMVs net-zero ambition for Scope 1 & 2 emissions We will leave familiar paths to develop fundamentally innovative low-emission technologies NET-ZERO We will push innovative approaches like carbon capture and storage/usage Scope 1…
OMV is committed to the goals of the Paris Climate Change Agreement New, more ambitious emission targets for 2025 SCOPE 1 target 2025 (vs. 2010) SCOPE 3 target 2025 (vs. 2010) Reduce the carbon intensity of operations 1 by Reduce the…
Clear priorities for a low carbon future CO2 emissions Natural gas offers immediate and natural gas-fired (50)% power plant vs. coal Natural gas substantial emission reduction potentials CO2 emissions CNG vs diesel (20)% GDP…
Focus on natural gas Share of natural gas in OMVs upstream production will be increased to around 60 percent Share of natural gas in OMVs upstream production Major natural gas fields contributing Pohokura New Zealand Aasta…
Borealis joins the OMV family Extending the value chain towards more valuable products Exploration & Refining & Chemicals & Industries Production Marketing Materials Automotive Gas Consumer Products Energy Oil & Gas production…
Borealis at a glance Leading polyolefin producer with a focus on innovation Long history and expertise in polyolefins business, established 25 years ago by three oil & gas companies (Neste, OMV, Statoil) Global footprint in 250 mn t…
Borealis has a strong financial track record Operating result (incl. JVs) Cash flow from operating activities (incl. JV dividends) EUR mn Net profit from associates EBIT EUR mn 1,530 1,558 1,425 1,334 1,225 1,281 1,206 1,187 1,102…
Borealis has a resilient business model underpinned by solid 2020 financials Quarterly operating result (incl. JVs) and net profit 2020 EUR mn Strong operating cash flow and net profit even in a 288 volatile market environment 181…
Polyolefins continue to show above-average market growth Polyolefin demand by region Polyolefin market (representing 50% of mn t global polymer market) growing above global CAGR GDP and showing higher increase vs. 2020-2030 351…
OMV becomes 1 in ethylene and propylene capacity in Europe Top ethylene & propylene capacities in Europe, OMVs global monomer capacity will 2019, mn t increase by over 50% to 6.4 mn t OMV 1 2.0 2.0 0.7 4.7 Thereof European ethylene and…
OMV extends value chain into polymers, immediately becoming one of the worlds leading producers Top 10 polyolefins capacities Globally, 2019 Borealis deal extends value chain, Mn t providing a natural hedge against cyclicality Sinopec…
Borealis well positioned to participate in market expansion via global growth projects Europe Americas Middle East & Asia-Pacific Total Belgium new PDH 1 plant in Kallo, Texas (US) Baystar JV with Total Abu Dhabi Borouge located in…
Borealis is a technology leader with innovative solutions and strong direct customer relations Innovative company Borstar Excellent customer relations 6,900 patents granted Borstar is a multi-modal More than 2,500 direct and 3,000…
Leading polyolefin producer with strong global market presence and resilient portfolio focusing on specialties Large share of specialty products and application know-how, increasing earnings resilience (60% margin share) Leading…
Borealis providing solutions to growing energy market Long-distance energy Ongoing innovations Leading supplier to transportation with 640 kV like encapsulation the energy industry DC cable world record materials and backsheets…
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 & Waste collection Design for recycling & Chemical recycling mechanical…
Mechanical Recycling Borealis acts as frontrunner in transforming the industry toward circularity Borealis has the right capabilities to develop solutions for its customers Borealis leading in circular economy solutions Four…
Chemical Recycling OMVs proprietary ReOil technology Substitution of crude oil by post-consumer plastics Synthetic Refinery/ Converts used plastics under moderate crude oil petchem process pressure and normal refinery operating…
Borealis will substantially strengthen OMVs operating cash flow OMV Operating cash flow excluding changes in net working capital EUR bn 5 4.3 4.2 3.9 3.2 3.0 2.8 2015 2016 2017 2018 2019 2020 2025 27 OMV Capital Market…
OMV Group Good organic free cash flow of EUR 1.3 bn in 2020 Cash flow development Decrease in operating cash flow, mostly EUR bn driven by Exploration & Production due to lower oil and gas prices 4.3 Continued strong organic free…
Borealis Strong and stable cash flow generation in 2020 Borealis Operating cash flow 2020 Uses of cash in 2020 (including dividends from at-equity participations) Running CAPEX of around EUR 0.5 bn p.a. EUR bn Dividends 1.6 M&A…
Borealis synergies of at least EUR 800 mn by year-end 2025 800 EUR mn by year-end 2025 Operational cost savings 200 200 200 Combined purchasing 150 Debottlenecking 50-80 Value chain optimization Tax benefits 2021 2022…
Capital allocation 1 ORGANIC CAPEX 2 DEBT REDUCTION PROGRESSIVE 3 DIVIDEND POLICY 31 OMV Capital Market Story, February 2021
Disciplined capital spending supports high free cash flows from combined businesses Organic CAPEX Total organic CAPEX are forecast at EUR bn EUR 2.7 bn for 2021 2.5 - 3.0 thereof EUR 0.2 are related to non-cash items 2.7 2.7 40% of…
Temporary increase in net debt following Borealis acquisition Gearing ratio excluding leases 8.1 Gearing ratio excluding leases considering divestments signed Signed divestments 1.0 Long-term Net debt excluding leases in EUR bn…
OMV has a strong track record in active portfolio management OMV will reduce debt while delivering on dividend policy DPS DPS Progressive EUR EUR dividend policy reconfirmed 1.00 Acquisitions 1.75 Borealis acquisition EUR 6 bn…
Update on the EUR 2 bn divestment program Signed divestments Ongoing divestments 51% share in Gas Connect Austria Divestment of the NITRO business1 Closing expected in H1/21 Fertilizer, technical nitrogen and the Net debt reduction of…
Clear commitment to our progressive dividend policy Dividend Per Share Record dividend of EUR 1.85 per 2020 EUR proposed (+6% vs. 2019) CAGR We are committed to deliver an attractive +13% 1.85 shareholder return 1.75 1.75 1.50…
Facts & Figures Exploration & Production 37 OMV Capital Market Story, February 2021
Exploration & Production Improved portfolio, lower cost Production volume Production cost Kboe/d USD/boe +53% +53% (50)% -50% 487 13.2 463 1 427 Asia-Pacific 10.6 348 MEA 8.8 303 311 North Sea 7.0 6.6 6.6 Russia…
Successful strategy execution in Exploration & Production 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…
Exploration & Production Major projects Development & Execution Project Country Type Production start Cum. production Peak production Working interest Operated FID primary year mn boe kboe/d % year Nawara Tunisia Gas 2020 40-50 10 50.0…
Facts & Figures Refining & Marketing 42 OMV Capital Market Story, February 2021
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 Cash…
Sustainable Refinery OMV invests around EUR 200 mn in biofuel production at Schwechat Refinery Biofuel production at Converting up to 160,000 metric tons of liquid biomass, Annual savings of Schwechat refinery substituting fossil…
Strong profit contribution from the retail business 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…
Internationalization of OMV Benefitting from an integrated position in UAE OMVs integrated value chain in the United Arab Emirates enhances profitability, increases optionality and reduces volatility Production Refining & Trading…
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…
Facts & Figures Borealis 49 OMV Capital Market Story, February 2021
OMV closed transformative agreement for increasing its share in Borealis to 75% OMV acquired additional 39% share in Borealis, increasing its share to a controlling interest of 75% Purchase price of USD 4.68 bn OMV is entitled to…
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…
Together with Borouge and Baystar, Borealis supplies polyolefins across the globe PO sales volume and regional split 1 mn t 8.6 8.6 8.2 0.4 Baystar Americas 8% 7.5 7.4 7.1 6.8 Middle East, Africa 21% 3.8 Borealis CIS 2% 5.3…
Borealis benefits from feedstock cost advantage, integration, and high flexibility Central Europe Average feedstock flexibility at Borealis crackers Integration with OMV refineries, over the fence supply with ethylene and propylene…
Appendix 55 OMV Capital Market Story, February 2021
Outlook 2021 2020 Outlook 2021 Brent oil price (USD/bbl) 42 50-55 Average realized gas price (EUR/MWh) 8.9 10 Total hydrocarbon production (kboe/d) 463 480 OMV indicator refining margin in Europe (USD/bbl) 2.4 2.4 European ethylene…
Sensitivities of the OMV Group results in 2021 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) 1 +150 +100 OMV indicator…
Macro environment improved crude oil and gas prices, but still below prior-year level Oil prices OMV indicator refining margin Europe USD/bbl USD/bbl 70 63 6 5.0 4.9 60 50 5 61 44 50 43 4 40 47 30 42 3 2.3 30 37 Average Brent…
OMV reacted swiftly to COVID-10 crisis Multi-billion action plan to safeguard financial strength OMV Reaction: Reduce organic investments by around 30% OMV is responding the 1 to around EUR 1.7 bn excluding Borealis in 2020 current…
Stringent cost discipline OPEX savings In EUR mn 650 Operational efficiency in all business units 460 Process optimization and 430 harmonization 330 Capture economies of scale and strictly manage overhead costs 200 Leverage…
Clean CCS Operating Result substantially impacted by lower oil prices and reduced demand Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR Upstream Corporate & Other…
Strong balance sheet Balance sheet December 31, 2020 vs. September 30, 2020 EUR bn 49.3 49.3 Deviations predominantly impacted by the acquisition of additional 39% shares in Borealis Stockholders equity resulting in full…
Financing Successful financing activities Date of issue Bond Amount in EUR mn Coupon in % Maturity September 2020 Hybrid bond (XS2224439385) 750 2.50 fixed 1 Perp-NC6 September 2020 Hybrid bond (XS2224439971) 500 2.875 fixed 1 Perp-NC9…
Financing Strong credit rating A3 A- Outlook negative Outlook negative March 16, 2020 March 13, 2019 65 OMV Capital Market Story, February 2021
Shareholders Diversified international shareholder base Shareholder structure 1 Geographical distribution of 0.4% 0.1% institutional investors 1 56.4% 7.9% 11% Consortium agreement 31.5% 5% 30% BAG & MPPH 5% 327.3 mn 27.9% 5%…
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 Eurozone 120 gas sector. & Europe 120 since 2016…
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…
2020 AGM Key additions to the Remuneration Policy for the Executive Board compared to previous years Objectives Measures taken Consideration of explicit sustainability criteria Emphasising (CO2 efficiency and diversity) in the LTIP…
Annual Bonus and Equity Deferral for the Executive Board Key elements Financial Targets (currently 80%) 3 financial and operational performance criteria Reported Net Clean CCS ROACE 2 Income1 (3-year average) Fatal accidents at…
Long-Term Incentive Plan (LTIP) for the Executive Board Key elements Performance period of 3 years Financial Targets (currently 85%) Maximum vesting of 200% of target level Free Relative Total Shareholder 2 financial performance…
Summary of variable remuneration 2020 Annual Bonus & Equity Deferral Long-Term Incentive Plan (LTIP) 80% 85% Financial Targets Financial Targets 40% Reported Net 40% Clean CCS Income 1 ROACE 2 Fatal accidents at work 50% Free 35%…
OMVs ESG performance relative to peers Relative rating vs industry peers top 10% top 10% top 5% top 12% SCORE 70 AAA B 2 76 Environmental 78 6.3 73 Social 66 6.6 79 Governance 67 1 6.5 76 1Governance is the sub-category of…
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