INA-Industrija Nafte d.d. · ZSE:INA
INA-Industrija Nafte d.d — MOL Group — Investor Presentation (November 2010)
82 slides from INA-Industrija Nafte d.d's investor presentation, November 2010
Slide 1: Investor Presentation November 2010
INVESTOR PRESENTATION November 2010
Slide 2: A leading European integrated oil and gas company
A leading European integrated oil and gas company Crude to plastic optimisation Unbundling E&P R&M Petchem Other Energy Gas transmission ► Producing assets in ►5 refineries with ► Petchem plants in ► UGS with 1.2 bcm ►TSO in Hungary 7, exploration in 14 total 470,000 bbl/day Hungary and Slovakia str
Slide 3: Highlights of Exploration & Production activities
Highlights of Exploration & Production activities ► More than 7 decades of exploration and production experience in CEE region with more than 300 oil and gas fields discovered ► E&P activities in 14 countries with production in 7 countries PL ► Significant reserve and production base with further ex
Slide 4: Production & reserves
Production & reserves SPE 2P reserves by country SPE 2P reserves by product 700 700 600 600 500 500 MMboe MMboe 400 400 300 300 200 200 100 100 0 0 Hungary Croatia Russia Syria Pakistan Other Total Oil Gas Condensate Total Production by country* Production by product* 160 160 140 140 120 120 100 100
Slide 5: Production activities in 7 countries
Production activities in 7 countries CEE onshore Syria Croatia, Hungary Hayan Block Reserves: Reserves: 373.4 MMboe 55.9 MMboe Production: Production: 91,950 boepd 4,110 boepd CEE offshore Pakistan Croatia Tal Block Reserves: Reserves: 65.0 MMboe 13.8 MMboe Production: Production: 14,140 boepd 1,400
Slide 6: Exploration activities in 14 countries
Exploration activities in 14 countries CEE offshore CEE onshore Croatia Hungary, Croatia, Croatia, Romania INAgip, INAgip, EdINA Recoverable resource potential*: Recoverable resource potential*: 145 MMboe 15 MMboe Russia Kazakhstan Matjushkinskiy, Surgut-7 Blocks Recoverable resource potential*: Fed
Slide 7: Significant investment plan to build platform for future growth
Significant investment plan to build platform for future growth CAPEX* (2010-12 plan): USD 2.6 bn Other ► Focus on field developments aiming early cash Kazakhstan CEE generation with key projects in Syria, Pakistan, Russia, onshore Kurdistan Hungary and Croatia Region of Exploration Iraq ► Increased
Slide 8: MOL's efficiency leadership and peer comparison
MOL’s efficiency leadership to be utilized on the Group level in order to exploit significant synergy and efficiency improvement potential Comparison of MOL and peer group performance (2005-2009) Lifting cost*/boe (2005-2009) ► Highly competitive lifting costs and unit opex maintained in the crisis
Slide 9: Solid base to become the Premium Refinery Group by 2012
Solid base to become the Premium Refinery Group by 2012… ► Duna and Bratislava refineries in top performer position since 2003 ► Commitment to elevate newly consolidated assets to MOL standards Competitive advantage ►Proven track record of cutting edge asset development ►Supply chain optimization al
Slide 10: Leveraging synergies of 5 refineries and 2 petchem units
… by leveraging synergies of 5 refineries and 2 petchem units ►Optimized asset development programs ►Joint supply chain management ►Joint stocking and shutdown scheduling ►Increased asset utilization Bratislava Refinery ►Integrated logistic infrastructure ►Feedstock and product transfer Duna Refiner
Slide 11: Extending operational excellence to Group level
Extending outstanding operational excellence to Group level REFINING LOGISTICS COMMERCIAL RETAIL ►Yield and spread improvement ►Increase asset ►Commercial techniques – capture ►Portfolio optimization ►Energy optimization utilization market improvement ►Increase of non-fuel ►Debottlenecking ►Optimize
Slide 12: Downstream asset developments 2010-2012
Downstream asset developments 2010-2012 Investments targeting to eliminate low margin products and further increase valuable motor fuels Bratislava (6.1 Mt) Rijeka & Sisak modernization program, Phase I. ► TPP revamp to secure market outlet for HFO products Compliance with EURO-5 (10 ppm) motor fuel
Slide 13: Disciplined CAPEX management – Group level optimization
Disciplined CAPEX management – Group level optimization 2010-2012 CAPEX: USD 2.0 bn ►Clean Fuels and Expansion program focus on Rijeka & Sisak Refineries 26% 30% ►Growing share of Efficiency Improvement ►Stable share of Compliance driven investments ►Disciplined maintenance and turnaround activities
Slide 14: On the track to become the Premium European Refinery Group
On the track to become the Premium European Refinery Group Refinery throughput: 22.4 Mt Refinery throughput: 24.6 Mt Refinery throughput: 27.3 Mt 2010 E 2012 E Long term target 4% 3% 4% 4% 3% 3% 4% 3% 5% 5% 6% 9% 6% 11% 10% 2% 4% 6% 21% 19% 19% 49% 54% 46% Middle Distillates Motor Gasoline Naphta LP
Slide 15: Gas transmission provides stable cash flow
Gas transmission provides stable cash flow Developments Regulation change Import capacity extension from Ukraine by 11 bcm/yr ► Hungarian State implemented Directive 2003/55/EC on 14th Interconnection to Romania (capacity: 1.75 bcm/yr) of January 2010 Interconnection to Croatia ► ITO -Totally indepe
Slide 16: Outlook for 2011 - premises
Outlook for 2011 - premises Average Q1-Q3 MAIN EXTERNAL PARAMETERS 2004-08 2009 2010 2011 Brent dated (USD/bbl) 65.5 61.7 77.1 82.0 Crack spread – premium unleaded (USD/t) FOB ROTT 121.8 112.5 133.9 130.0 Crack spread – gas oil (USD/t) FOB ROTT 135.4 68.8 81.7 81.0 Crack spread – naphtha (USD/t) FOB
Slide 17: Existing portfolio has a significant EBITDA generation potential
Existing portfolio has a significant EBITDA generation potential MOL Group EBITDA (USD bn) 5,0 Upstream ► Focusing on key cash generation development projects 4,0 ► Increase production to 140-145 Mboe/d ► Exploration to further increase the reserve base 3,0 2,0 Downstream ► Became the most efficient
Slide 18: Disciplined CAPEX program
Disciplined CAPEX program Upstream – USD 2.6 bn ► Focus on high return development projects 2010-12 CAPEX plan by segments ► Conventional and unconventional exploration targeting significant resource base ► Key regions: Syria, Hungary, Kurdistan, Croatia and 9% Russia 4% 3% Downstream – USD 2.0 bn 4
Slide 19: Strong financial position
Strong financial position ► 33.7% gearing ratio ► Net debt amounted to HUF 981.0 bn ► Net debt, excluding INA’s full consolidation impact was HUF 620.9 bn Gearing (30 Sept 2010) ► Ratings: Fitch: BBB- with Stable Outlooks; S&P: BB+, stable outlook ► Financing transactions in 2010 driven by diversifi
Slide 20: Well balanced funding portfolio
Well balanced funding portfolio Committed funding portfolio (facilities) 10% 20% Bilateral ► 3 syndicated revolving loan facilities and 2 club loans (EUR 2.85 bn) 24% Syndicated and club loans ► Bilateral loans (EUR appr. 1.2 bn): ► Local facilities Bond ► Facilities from multilaterals (EUR 446 mn)
Slide 21: MOL group net currency exposure (without INA)
MOL group net currency exposure (without INA) Net currency exposure* Expected group net FX exposure* Long FX exposure Short FX exposure ► Upstream ► long in USD ► short in HUF, RUB 20% ► Downstream 51% 49% ► long in USD ► short in HUF and EUR 80% ► Petchem ► long in EUR ► short in USD, HUF USD EUR H
Slide 22: Sensitivity analysis for 2010 (without INA)
Sensitivity analysis for 2010 ( without INA) Effect on FY operating profit (HUF bn) E&P R&M Chemicals TOTAL +/- 5 USD/bbl crude oil price movement (with fixed crack spread and petrochemical margin) +/-7.5 -/+ 0.8 -/+0.9 +/-5.8 +/- 10 USD/HUF, with fixed crack spreads +/-5.9 +/-13.3 -/+10.0 +/-9.2 +/
Slide 23: Back up slides
BACK UP SLIDES > MOL GROUP
Slide 24: Upstream
UPSTREAM Nw,
Slide 25: CEE onshore conventional activities
CEE onshore conventional activities – maximise recovery of existing fields while exploiting further upside potential Key Facts (2009) ► 373.2 MMboe 2P reserves ► 91,950 boepd production Highlights (2010-12) ► 31% of total upstream CAPEX Production share CAPEX share allocated on field development, 20
Slide 26: Adriatic offshore – significant production growth until 2012
Adriatic offshore – providing significant production growth until 2012 Key facts (2009) ► 65.0 MMboe 2P reserves ► 14,140 boepd production Highlights (2010-12) ► 4% of total upstream CAPEX on Production share CAPEX share field development, EOR and 2010-12 maintenance activities ► 5,000 boepd increme
Slide 27: CEE onshore unconventional activities
CEE onshore unconventional activities – platform of long-term growth Key facts (2009) ► Unconventional potential in 5 different basins Highlights (2010-12) Derecske Basin ► Total area of more than 3,500 km2 ► Total risked resource potential under assessment Békés Basin Zala Basin Makó Basin Drava Ba
Slide 28: Russia – stable production in forthcoming years
Russia – stable production in forthcoming years Key facts (2009) ► 146.3 MMboe 2P reserves ► 20,060 boepd production Highlights (2010-12) ► 14% of total upstream CAPEX on Production share CAPEX share fast track field development and 2010-12 exploration activities ► 7,000 boepd incremental production
Slide 29: Syria – fast-track development of Hayan block
Syria – fast-track development of Hayan block to strengthen production base by 2011 while testing exploration potential of Aphamia project Key facts (2009) ► 55.9 MMboe 2P reserves ► 4,110 boepd production Highlights (2010-12) ► 11% of total upstream CAPEX on Production share CAPEX share field devel
Slide 30: Pakistan - major production increase in 2010
Pakistan - major production increase in 2010 Key facts (2009) ► 13.8 MMboe 2P reserves ► 1,400 boepd production Highlights (2010-12) ► 4% of total upstream CAPEX on Production share CAPEX share field development and increased 2010-12 exploration activities ► 5,000 boepd production increase primarily
Slide 31: Kurdistan Region of Iraq – significant developments
Kurdistan Region of Iraq – significant developments by investing into a sizeable asset base Key facts (2009)* ► Acquisition of 10% in Pearl project ► Significant discovery in Shaikan block Highlights (2010-12) ► 19% of total upstream CAPEX on CAPEX share fast track field development and 2010-12 expl
Slide 32: Kazakhstan – putting recent discovery into production
Kazakhstan – putting into production our recent discovery Key facts (2009) ► Successful testing of appraisal well proving significance of discovery Highlights (2010-12) ► 3% of total upstream CAPEX on CAPEX share development and appraisal 2010-12 activities ► 50 MMboe recoverable resource potential
Slide 33: Other international E&P – platform for growth beyond 2012
Other international E&P – platform for growth beyond 2012 Key facts (2009) ► 10.6 MMboe 2P reserves ► 3,860 boepd production Highlights (2010-12) ► 8% of total upstream CAPEX on Production share CAPEX share field development and increased 2010-12 exploration activities ► 500 MMboe recoverable resour
Slide 34: Downstream
DOWNSTREAM YS » MOLK-GROUP A DP XY Jo Wis
Slide 35: Extended asset portfolio leverages competitive advantage
Extended asset portfolio leverages competitive advantage Competitive advantage ► Proven track record of cutting edge asset development ►Supply chain optimization along the whole value chain (7 plants refinery model incl. petchem, retail) ►Diversified crude supply with option to Bratislava opportunit
Slide 36: Long-term demand - CEE favourable growth position
Long-term demand - CEE favourable growth position Demand growth driven by dieselization and Car penetration curve (2007) economic growth ► GDP growth potential maintained ► Rapid growth of car penetration with significant further potential ► Dominant share of road in transportation supports diesel c
Slide 37: Significant diesel shortage expected even after refinery investments
Significant diesel shortage expected even after refinery investments Supply-Demand Balance - 2010 / 2012 / 2015 / 2020 (including refinery and bio supply in Mt) 28 31 36 41 Gasoline MOL’s core region is in balance regarding Gasoil gasoline -4 -4 -9 North-West Europe -9 -10 -12 -10 ►Growing passenger
Slide 38: Rijeka modernization program – Current Stage
Rijeka modernization program – Current Stage Full Full 10 10 ppm ppm diesel diesel and and gasoline gasoline production production FUEL GAS Mild Mild HCK HCK complex complex LPG MEROX LPG i-PENTANE (2,6 (2,6 MT/y) MT/y) n-HEXSANE Start-up: Start-up: Q4 Q4 2010 2010 Light REF. to DIP ISOMERISAT Euro
Slide 39: Rijeka modernization program – Current Stage
Rijeka modernization program – Current Stage Full Full 10 10 ppm ppm diesel diesel and and gasoline gasoline production production Product yields – basis and after Phase 1 0% 6% 18% 1% 6% Parallel increase in Nelson Complexity 1% Index 25% 4% 8+ 28% 5.8 29% 42% 40% 2010 E 2011 E basis with MHC LPG M
Slide 40: Sisak modernization program – Current stage
Sisak modernization program – Current stage Clean Clean gasoline gasoline and and partial partial transition transition to to 10 10 ppm ppm diesel diesel Coker Coker Gasoil Gasoil HDS HDS unit: unit: revamp revamp was was completed completed in in 2007. Increase quality of 2007. Increase quality of
Slide 41: Crude supply security managed by diversification
Crude supply security managed by diversification Baltic Pipeline System 1-2 Primorsk (BPS 1) crude Current capacity: 75 Mt/y ► EU export expected to export 2008: 70 Mt Total planned capacity 105 Mt/y -2012 Total planned capacity 125 Mt/y –end of 2013 be stable ► Russian suplliers have BTL strong int
Slide 42: Second generation of biofuels - Part of Downstream strategy
Second generation of biofuels - Part of Downstream strategy EU Directives – CARE package Compliance makes the different Given rules for fuel suppliers Solution needs second generation of biofuels 100 Lifecycle CO2 Emission G/MJ ►EU CARE package expects fuel ►GHG threshold cannot be suppliers to incr
Slide 43: Retail coverage to support refinery sales
Retail coverage to support refinery sales Retail Market Share Key Drivers / Facts ► Provides strong captive market for refineries: 19% ► 90 % of sales on Core and Growth markets ► 1 600+ filling stations in 10 countries in the supply radius of our refineries ► Successful multi-brand strategy to maxi
Slide 44: Petrochemicals – crude to plastic optimisation
Petrochemicals – crude to plastic optimisation Petrochemicals is a significant risk mitigator in the hydrocarbon value chain R&M Petrochemicals Transfer to Petchem 16% ► Petrochemicals support Refining Olefins Polymers R&M growth as captive (naphtha, LPG, gasoil) (ethylene, propylene) (LDPE, HDPE, P
Slide 45: Other energy
OTHER ENERGY > MOL GROUP
Slide 46: Other energy – stable return due to previous investments
Other energy – stable return due to previous investments Gas storage Power Slovnaft HFO: ~ 500 kt Refinery Steam Thermal Electricity Power Plant Electricity Major project (2010-2012) is the revamp of the TPP MMBF – UGS from Szőreg-1 reservoir Partnership with CEZ ► Strategic storage is filled up by
Slide 47: Q3 2010 financial results and 2011 outlook
Q3 2010 FINANCIAL RESULTS AND 2011 OUTLOOK
Slide 48: Continuously improving operating results
Continuously improving operating results Q2 2010 Q3 2010 Q3 2009 Ch. % (IFRS), in HUF billion Q1-Q3 Q1-Q3 Ch. % 2009 2010 CONTINUING OPERATIONS 1,048.4 1,181.9 922.0 28 Net sales revenues 2,253.1 3,096.6 37 123.9 163.3 98.1 66 EBITDA 329.8 417.4 27 159.8 193.1 98.3 96 EBITDA excl. special items(1) 2
Slide 49: CAPEX spending was in line with our plan
CAPEX spending was in line with our plan In HUF bn* 200 160 72 120 85 77 80 68 43 73 40 63 14 7 3 0 4 E&P R&M G&P Petchem C&O Q1-Q3 2009, MOL incl INA Q3 contribution Q1-Q3 2010, MOL incl INA MOL - Non cash item (Pearl) ► CAPEX spending was HUF 240.9 bn (11% lower than previous year) in Q1-Q3 2010,
Slide 50: Upstream - Stable macro environment
Upstream - Stable macro environment Brent (USD/bbl) HUF/USD average 100 240 1 80 -2 200 160 60 120 218,7 216,1 40 78,2 76,9 80 ► Oil prices remained relatively stable within 20 the 70-85 USD/bbl range during Q3 2010, the 40 Brent averaged at 76.9 USD/bbl in Q3 2010, 2% 0 0 lower than in the previous
Slide 51: Upstream – Production increased 9% year-on-year in Q3
Upstream – Production increased 9% year-on-year in Q3 Daily hydrocarbon production (boepd) 150 0,7 Other International 6,1 condensate 9 5,8 0,2 6,6 8,6 Croatian condensate 120 6,1 3,1 ► In the third quarter, total hydrocarbon Hungarian condensate production was 142,000 boe/day 38,0 29,3 ►Crude oil p
Slide 52: Upstream – Strong results due to international operation
Upstream – Strong results due to international operation Operating profit* (HUF bn) Average hydrocarbon production (thboe/d) ► Operating profit* increased to HUF 150 84 10 -2 81.7 bn, up 133% vs. Q3 2009 and 10% 72 120 vs Q2 2010 60 90 48 145,0 81,7 142,0 36 74,1 60 24 30 Key drivers y-o-y 12 0 0 Q2
Slide 53: Downstream – Improving macro environment in October
Downstream – Improving macro environment in October Brent-Ural differential Crack spread – premium (USD/bbl) unleaded, gasoline (USD/t) ►The external conditions in Q3 2010 3 150 -20 showed mixed picture, compared to Q2 2,5 120 19 2010, but favored our result. 2 90 -50 1,5 56 60 140,9 112,9 134,8 ►Di
Slide 54: Downstream - Slightly improving diesel demand in Q3
Downstream - Slightly improving diesel demand in Q3 in the region Real GDP for Gasoline Diesel Motor Fuel % change 2010 Demand Demand Demand y-o-y Jul-Sept Jul -Sept Jul -Sept Legend: demand change Q3 2010 / Q3 2009 (%) Hungary 1.1% (8.5%) (2.0) (4.2) 8.5% -2.1 % Slovakia 4.4% 2.8% 16.8% 12.2% Gasol
Slide 55: Downstream - Strong operating profit improvement
Downstream - Strong operating profit improvement ► Operating profit* improved by 85% EBITDA* (HUF bn) Operating profit* (HUF bn) to HUF 38.5 bn in Q3 q-o-q 70 40 60 Key drivers 42 85 30 50 ► The profit was influenced positively by 40 63,4 20 38,5 ► higher sales volume by 14,7% in line 30 44,7 with s
Slide 56: Petrochemicals – Improving operating profit in Q3 2010
Petrochemicals – Improving operating profit in Q3 2010 EBITDA (HUF bn) Operating profit (HUF bn) ► Operating profit more than tripled to 10 10 HUF 6.0 bn compared to Q2 2010 77 8 8 Key drivers 6 6 10,6 ► the more favourable petrochemical margin, 4 4 275 ► the increased sales volumes and 6,0 6,0 2 2
Slide 57: Gas & Power – Temporary freezing of gas tariffs
Gas & Power – Temporary freezing of gas tariffs affected negatively the results of FGSZ, as the main profit contributor Gas & Power EBITDA* Gas & Power operating (HUF bn) profit* (HUF bn) 30 30 ► Operating profit* decreased to HUF 8.8 24 24 bn in Q3 2010 -66 18 18 26,1 -58 FGSZ Zrt. 12 12 20,7 6 13,
Slide 58: Key projects and 2011 outlook
Key projects and 2011 outlook 58
Slide 59: Upstream - Promising field development and exploration activity
Upstream - Promising field development and exploration activity Upstream Upstream production production is is expected expected around around 145-150 145-150 th th boe boe per per day day in in 2011 2011 Hayan Hayan Block Block will will strengthen strengthen the the production production base base
Slide 60: Ongoing integration and efficiency improvement in Downstream
Ongoing integration and efficiency improvement in Downstream Rijeka Refinery Product yields 0% 25% 6% 1% Rijeka Rijeka Phase Phase 11 –– first first step step towards towards efficient efficient INA INA Downstream Downstream 28% ► Start up process of grass-root Hydrocrack complex has already 2010 E
Slide 61: Gas & Power – diversification of gas supply
Gas & Power – diversification of gas supply Gas transmission Romanian Interconnector - Gas already flowing Slovakian Baumgarten interconnector Velky Kapusany ► Gas flowing since 3rd August Bratislava Capacity ► 80% of total capacity is booked in long term Mosonmagyaróvár extension Budapest contracts
Slide 62: Refinery shutdown plan (2011)
Refinery shutdown plan (2011) Q1 2011 Q2 2011 Q3 2011 Q4 2011 Duna Refinery – gasoline Duna Refinery – diesel Slovnaft Refinery – gasoline Slovnaft Refinery – diesel IES Refinery – gasoline IES Refinery – diesel Rijeka Refinery – gasoline Rijeka Refinery – diesel Sisak Refinery – gasoline Sisak Refi
Slide 63: MOL Shareholding structure
MOL Shareholding structure SHAREHOLDING STRUCTURE (%) 30 September 2010 7,1 Foreign investors 2,3 4,3 Surgutneftegas 3,0 26,6 OmanOil (Budapest) Limited 3,0 CEZ MH B.V. 1,2 Magnolia Finance Limited ING Bank N.V. 6,1 OTP Bank Nyrt. MFB Invest Zrt. 5,0 Crescent Petroleum 5,7 Dana Gas PJSC 21,2 Domesti
Slide 64: Acquisition of a 10% stake in Pearl Company
Acquisition of a 10% stake in Pearl Company
Slide 65: Pearl – extended presence in the Middle East
Pearl – extended presence in the Middle East Pearl develops two giant gas-condensate fields* Deal description Khor Mor production and development phase field: ► MOL acquired 10 % of Pearl Petroleum Company ► 299 sqkm area Ltd. for 6,271,142 “A” series MOL shares, (6% of ► Significant upside potentia
Slide 66: Marketing possibilities for Pearl gas resources
Marketing possibilities for Pearl gas resources Gas demand and routes to CEE* Alternative marketing possibilities +0 +19 +18 ► European markets could be reached on 89.8 90** +41 6.6 7.8 6.6 7.8 +29 alternative routes (LNG, TAP, IGI). 9.3 11.1 9.3 11.1 +6.3 SVK CZR 18.2 23.4 ► There is a growing dema
Slide 67: Strategic partners in Pearl
Strategic partners in Pearl Dana Gas Crescent Petroleum ► Dana Gas is the first regional private-sector natural ► Crescent Petroleum, headquartered in Sharjah in the gas company in the Middle East, established with over UAE, has been operating as a regional private 300 reputable founder shareholders
Slide 68: INA transaction
INA transaction > MOL GROUP
Slide 69: Operational responsibility enables value creation
Operational responsibility enables value creation Nov 2003 MOL acquired 25% plus one vote stake in INA (for USD 505 mn) Restructuring with strong minority position provided by the Shareholders’ Agreement 2003-2008 (SHA) Oct 2008 MOL became the largest shareholder of INA (47.16%) via voluntary public
Slide 70: Amendment to the Shareholders' Agreement
Amendment to the Shareholders’ Agreement* MOL gained operational control of INA: ► Supervisory Board: MOL delegated 5 out of 9 members INA Shareholding Structure (incl. the Vice-president) (31 December 2009) ► Management Board: MOL delegated 3 out of 6 members (incl. the President who has tie-castin
Slide 71: Gas Master Agreement: near-term value creation
Gas Master Agreement: near-term value creation ► INA exits from regulated Gas Storage and Gas Trading operations ► 2008 Operating losses for discontinued operation: USD 345 mn ► Gas Storage divested in Q2 2009 for HRK 514 mn Exit from ►The Amendment to the Gas Master Agreement signed on 16 Dec 2009
Slide 72: Supplementary information
SUPPLEMENTARY INFORMATION S We Z an > a > MOL GROUP
Slide 73: Nabucco project
Nabucco project Strategic goals Recent developments ► Opening a new gas supply corridor for Europe and ► The Intergovernmental Agreement was signed in for the countries involved in the project - new gas Ankara on 13 Jul. 2009 and ratified by all National sources from the Caspian region Parliaments b
Slide 74: Power plant developments: inevitable to ensure supply demand balance
Power plant developments: inevitable to ensure supply demand balance MARKET ENVIRONMENT Expected decrease in available generating Expected net electricity deficit in CEE region in 2020 capacities in Hungary (MW) 12 000 Germany 10 000 EEX price Czech Republic ±EEX price 8 000 Gap expected Slovak Repu
Slide 75: CCGT power production and MOL Group captive demand
CCGT power production is the answer to supply flexibility required by volatile demand and enhance power supply security of MOL Matching complementary skills: competitive advantage MOL Group electricity demand as captive market • MOL as pure oil Expected growth of MOL Group’s electricity and gas play
Slide 76: Highlights of the MOL – CEZ joint venture
Highlights of the MOL – CEZ joint venture Hungarian CCGT investment highlights Slovak CCGT and TPP investment highlights ► Initial CAPEX estimate: ~650 mn EUR ► Initial CAPEX CCGT estimate: ~630 mn EUR TPP (contracted):150 mn EUR ► Planned capacities: 800 MW CCGT ► Planned capacities: 800 MW CCGT +
Slide 77: Utilizing MOL Group's primary and secondary energy sources
Utilizing MOL Group’s primary and secondary energy sources Geothermal energy Projects Biogas Energy efficiency Waste heat recovery Low calorific gas CEGE Co. Overview / Significant thermal Biogas production Reduce the energy Utilizing the waste Small size gas Concept water potential by utilizing the
Slide 78: MOL: First mover in regional downstream consolidation
MOL: First mover in the regional downstream consolidation 2003 - 2007: Retail expansion ► Shell Romania – 2003 ► Roth Company (Austria) - 2004 ► 67% in Energopetrol with INA (BiH) - 2006 ► Tifon (Croatia) - 2007 2009: Operational control over INA 2008: Acquisition of further 22.2% share in INA throu
Slide 79: MOL: Upstream portfolio development
MOL: Upstream portfolio development 2007 - 2008: Memorandum of Understanding ► Quatar Petroleum International ► Libyan Investment Authority ► Indian Oil and National Gas Corporation 2009: Acquisition of a 10% stake in Pearl Company ►Strategic co-operation with OOC (potential source of 2008: Nabucco
Slide 80: MOL is committed to Sustainable Development
MOL is committed to Sustainable Development ► Represented on the highest level (Sustainable Development Committee of the Board of Directors) ► Each business and functional unit involved SD Strategic initiatives of MOL Group ► Concentrate on future portfolio steering to increase ► Capitalize on human
Slide 81: Further information
Further information Financial reports, announcements, other information and download possibilities can be found on our homepage: www.mol.hu MOL Investor Relations: Tel: +361-464-1395 E-mail: investorrelations@mol.hu 81
Slide 82: Disclaimer
Disclaimer "This "T presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, ca