Capital Market Story January 2021 OMV Aktiengesellschaft
OMV at a glance Three strong pillars, integrated along the value chain Chemical Recycling Mechanical (ReOil) Recycling Upstream Downstream Chemicals 5 core regions: CEE, MEA, 3 Refineries in Austria, Germany 75% share in…
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% OMV business and its chemical…
Global footprint Strong European core and well positioned to benefit from demand in growth markets Upstream 1 Integrated position in Germany: The Burghausen refinery is highly integrated with the Borealis Burghausen site Downstream…
Why invest Integrated business Focus on non-energy Well positioned to model along the chemical products, and become a leading value chain thus transitioning for player in the circular business success in economy a low-carbon…
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 Scope 1 & 2 emissions carbon capture and…
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-fired (50)% Natural gas offers immediate and power plant vs. coal Natural gas substantial emission reduction potentials CO2 emissions (20)% CNG vs diesel GDP…
Focus on natural gas Share of natural gas in OMVs Upstream production will be increased to at least 65 percent Share of natural gas in OMVs Upstream production Major natural gas fields contributing Pohokura New Zealand Aasta…
OMV closed the acquisition of a controlling interest in Borealis, repositioning the company for a low carbon future Key financials of Borealis Market presence of Borealis Borealis Employees Sales 2019 2 Leading polyolefin producer…
OMV becomes 1 in ethylene and propylene capacity in Europe Top ethylene & propylene capacities in Europe, 2019, mn t OMVs global monomer capacity will OMV 1 2.0 2.0 0.7 4.7 increase by over 50% to 6.4 mn t Ineos 4.4 Thereof European…
OMV extends value chain into polymers, immediately becoming one of the worlds leading producers Top 10 polyolefins capacities Globally, 2019 Mn t Borealis deal extends value chain, Sinopec 13.5 providing a natural hedge against…
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…
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…
High specialty share for high-end applications Application examples The growing Bormed polyolefin portfolio offers superior technical performance for medical devices, pharmaceuticals, and 60 Advanced diagnostic packaging.…
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…
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 temperatures into…
Borealis will substantially strengthen OMVs 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…
OMV reacted swiftly Multi-billion action plan to safeguard financial strength in the current challenging environment OMV Reaction: Reduce organic investments by around 30% OMV is responding the 1 to around EUR 1.7 bn in 2020 current…
Forward integration into chemicals will make OMV more resilient OMV Borealis Operating cash flow Operating cash flow (incl. Borouge dividends) EUR bn EUR bn -20% +6% +6% (20)% 2.9 1.1 1.1 Downstream 2.3 excluding 1.2…
Synergies of at least EUR 800 mn by end-2025 Operational cost savings Combined purchasing Debottlenecking Increased capital efficiency 800 EUR mn by end-2025 Tax benefits 24 OMV Capital Market Story, January 2021
Capital allocation 1 ORGANIC CAPEX 2 DEBT REDUCTION PROGRESSIVE 3 DIVIDEND POLICY 25 OMV Capital Market Story, January 2021
Disciplined capital spending remains an imperative OMV Borealis OMV & Borealis Organic CAPEX CAPEX combined organic EUR bn EUR bn CAPEX Flexibility to adjust EUR bn 2.5-3.0 CAPEX spending 2.4 1 below the guidance, if thats required by…
OMV has a healthy balance sheet despite major acquisitions and record dividends Net debt and gearing ratio 1 excluding leases EUR bn, % Long-term 26% gearing ratio target 1 22% excluding leases 21% 30 19% 19% % 12% 3.7 11%…
Good access to financial market at attractive conditions Financing activities in 2020 Coupon in Date of issue Bond Amount Maturity 4.5 % September 2020 Hybrid bond EUR 750 mn 2.50 fixed 1 Perp-NC6 September 2020 Hybrid bond…
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…
Good progress on EUR 2 bn divestment program Divestment of OMV retail Divestment of 51% share network in Germany in Gas Connect Austria Agreement reached on December 14 Signed on Sep 23, 2020 Closing expected in 2021 Closing expected…
Clear commitment to our progressive dividend policy Dividend Per Share EUR 1.75 1.75 Progressive dividend policy: OMV aims to 1.50 increase the dividend or at least maintain it at the respective previous years level 1.20 1.00 OMV…
Facts & Figures Upstream 32 OMV Capital Market Story, January 2021
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…
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…
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 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 by OMV 2014…
Facts & Figures Downstream 37 OMV Capital Market Story, January 2021
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…
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…
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 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 &…
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…
Facts & Figures Borealis 45 OMV Capital Market Story, January 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…
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…
Appendix 50 OMV Capital Market Story, January 2021
Outlook 2020 2019 Outlook 2020 Brent oil price (USD/bbl) 64 40 Average realized gas price (EUR/MWh)…
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…
Multi-billion action plan to safeguard financial strength Reduce organic investments by around 30% in 2020 1 OMV 2020 CAPEX reduced from EUR 2.4 bn to around EUR 1.7 bn Further optimization of combined business with Borealis in…
Stringent cost discipline OPEX savings In EUR mn 600 Operational efficiency in both 460 430 Upstream and Downstream Process optimization and 330 harmonization Capture economies of scale and 200 strictly manage overhead costs…
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 56 OMV Capital Market Story, January 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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