Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Investor Day (December 2021)
47 slides from Omv Petrom Sa's investor day presentation, Dec 7, 2021
Slide 1: Strategy 2030: Transforming for a lower carbon future
Strategy 2030: Transforming for a lower carbon future Bucharest | December 7, 2021 OMV Petrom S.A.
Slide 2: Disclaimer
Disclaimer This presentation does not, and is not intended to, constitute or form part of, and None of the future projections, expectations, estimates or prospects in this should not be construed as, constituting or forming part of, any actual offer to sell presentation, including (without being lim
Slide 3: Our speakers today
Our speakers today Christina Verchere Alina Popa CEO CFO Presenter Presenter Chris Veit Radu Caprau Franck Neel EB Member EB Member EB Member Exploration & Production Refining & Marketing Gas & Power 3 | OMV Petrom Strategy 2030
Slide 4: Agenda
Agenda 1 | Strategy overview 2 | Energy context Transition to low and zero 3 | carbon 4 | Grow regional gas 5 | Optimize traditional business 6 | Financial frame 7 | Closing remarks 4 | OMV Petrom Strategy 2030
Slide 5: OMV Petrom: transforming for a lower carbon future
OMV Petrom: transforming for a lower carbon future We will lead the energy transition in South-East Europe, capitalizing on emerging market opportunities Romania is among the fastest growing economies in Europe, driving increasing energy demand OMV Petrom is well placed to meet this demand wit
Slide 6: OMV Petrom Strategy 2030: Transforming for a lower carbon future
OMV Petrom Strategy 2030: Transforming for a lower carbon future Strong capital discipline & dividend policy Transition to low and zero carbon Energy transition leader for Romania and SEE Optimize traditional Grow regional business gas Innovation & People & Responsible Digitalization Communities ope
Slide 7: OMV Petrom: Building a diversified, integrated energy transition business
OMV Petrom: Building a diversified, integrated energy transition business OMV Petrom portfolio 2030 Clean CCS EBIT CAPEX % % 1 7 15 35 Renewable power Gas Biofuels 35 Gas based Alternative 20 power mobility 100 92 Fuels CCU&S Adding 50 45 5 low carbon Blue and Oil business activities green H2 by 203
Slide 8: OMV Petrom investment proposition: growth, dividends and sustainability
OMV Petrom investment proposition: growth, dividends and sustainability Strong value creation Strong balance sheet Reduce carbon footprint Gearing ratio below 20% through the Net zero operations by 2050 period Rigorous capital discipline Sustainability at the core of our business CAPEX of EUR 11 bn1
Slide 9: Strategy in a nutshell
► Strategy in a nutshell 9 | OMV Petrom Strategy 2030
Slide 10: Agenda
Agenda 1 | Strategy overview 2 | Energy context Transition to low and zero 3 | carbon 4 | Grow regional gas 5 | Optimize traditional business 6 | Financial frame 7 | Closing remarks 10 | OMV Petrom Strategy 2030
Slide 11: Romania is one of Europe's fastest growing economies, in a rapidly changing energy context
Romania is one of Europe’s fastest growing economies, in a rapidly changing energy context European energy environment is going through Romanian GDP per capita set to significant transformation grow1 CAGR, % 4.3 3.4 Energy security Fit for 55 2.3 1.5 0.4 -0.5 2010-20 2021-30 Romania Other SEE EU Tec
Slide 12: Strong growth in energy demand in Romania to 2030
Strong growth in energy demand in Romania to 2030 Gas - household Power - household Gas demand Power demand consumption1 consumption1 Romania2 Romania2 MWh per capita MWh per capita TWh TWh 2.3 Romania Other SEE +20% -10% EU 1.7 1.6 1.5 121 +10% 1.0 +10% 60 0.4 2019 2019 2019 2030 2040 2019 2030 204
Slide 13: Economic growth and rising living standards drive fuel consumption growth to 2030
Economic growth and rising living standards drive fuel consumption growth to 2030 Motorization rate1 Diesel demand2,3 Gasoline demand2,3 Jet demand2,3 cars/1000 inhabitants mn t mn t mn t +20% +10% +5% -30% -15% +10% 12.9 2.6 1.1 570 1.0 2.4 0.9 10.8 2.2 440 9.0 360 Fossil Bio 2019 2019 2030 2040 20
Slide 14: Agenda
Agenda 1 | Strategy overview 2 | Energy context Transition to low and zero 3 | carbon 4 | Regional gas growth 5 | Optimize traditional business 6 | Financial frame 7 | Closing remarks 14 | OMV Petrom Strategy 2030
Slide 15: Key directions to decarbonization
Key directions to decarbonization Decarbonize current operations Expand lower carbon gas business Pursue new low and zero carbon business opportunities 15 | OMV Petrom Strategy 2030
Slide 16: Paving the way to Net Zero operations in 2050
Paving the way to Net Zero operations in 2050 Scope 1 – 21 emissions Scope 1 – 2 carbon intensity2 mn t CO2 eq reduction % 4.9 -50% E&P Refining Power 4.3 -30% > 15% > 20% Gas & Power Refining & Marketing Exploration & Production > 70% 2010 2019 2030 -30% Actions aimed at reducing Scope 1 & 2 by 203
Slide 17: Carbon intensity of energy supply to drop ~20% by 2030
Carbon intensity of energy supply to drop ~20% by 2030 Scope 1 – 3 Net carbon intensity of energy supply g CO2 eq/MJ -35% 80 -20% 70 ~ 20% reduction in Scope 1-3 carbon emissions1 EU Taxonomy eligible CAPEX to reach 35%2 Lower and zero carbon energy for customers, to account for ~60% in total
Slide 18: Well positioned to capture Romania's solar potential and develop a renewable power portfolio
Well positioned to capture Romania's solar potential and develop a renewable power portfolio Photovoltaic Renewable Opportunities OMV Petrom target total capacity, power including partnerships, GW Photovoltaic ► Romania: the highest solar potential in the region ► > 10% contribution to the 2030 tota
Slide 19: Biofuels to exceed 15% in our total fuel production in 2030
Biofuels to exceed 15% in our total fuel production in 2030 Biofuels Biofuel Opportunities OMV Petrom target capacity, kt/year Advanced ethanol: ► Romania: unique combination of straw availability and cost Cellulosic ethanol ► Upgrading agricultural residues with potential for carbon- 0 50 150 from
Slide 20: Future mobility: capturing new energy mix opportunities
Future mobility: capturing new energy mix opportunities Electro Mobility Charging points with alternative fuels Grow e-mobility offer and become the preferred partner for electric fleets > 500 H2 mobility Active contribution to the development of H2 mobility - solution to decarbonize heavy duty tran
Slide 21: Unique opportunities in new energy technologies
Unique opportunities in new energy technologies Carbon capture, utilization & storage Hydrogen ► Romania: significant on- & offshore long-term CO2 storage ► Romania: gas production and renewable energy availability - potential to be evaluated opportunity for blue and green H2 production ► OMV Petrom
Slide 22: Investing in low and zero carbon businesses generating attractive return
Investing in low and zero carbon businesses generating attractive return Future mobility (EV, H2, Gas) Capex1 Biofuels New technologies ~EUR 3.7 bn (CCS, H2 etc.) IRR 9-15% Renewable power 1 Projects selection and prioritization will be based on risk and return assessments, including regulatory deve
Slide 23: Agenda
Agenda 1 | Strategy overview 2 | Energy context 3 | Transition to low and zero carbon 4 | Grow regional gas 5 | Optimize traditional business 6 | Financial frame 7 | Closing remarks 23 | OMV Petrom Strategy 2030
Slide 24: Neptun Deep: a strategic gas project for OMV Petrom
Neptun Deep: a strategic gas project for OMV Petrom OMV Petrom’s perspective1 FID2 2022/23 Estimated ~50 end-year recoverable resources bcm First Gas2 2026/27 Net to OMV Petrom Production at plateau ~70 Development CAPEX <2 Neptun Deep kboe/d EUR bn Net to OMV Net to OMV Petrom Petrom Black Sea Op
Slide 25: Neptun Deep
► Neptun Deep 25 | OMV Petrom Strategy 2030
Slide 26: Build additional opportunities in the Black Sea
Build additional opportunities in the Black Sea New offshore exploration wells 2-4 By 2030 Exploration expenditures EUR mn ~30 Annual average 2022-2030 Bulgaria – Han Asparuh OMV Petrom (42.9%), TotalEnergies (57.1% Operator) Black Sea Status: 5,000 km2 3D seismic data processing Bulgaria - Han
Slide 27: Agenda
Agenda 1 | Strategy overview 2 | Energy context 3 | Transition to low and zero carbon 4 | Grow regional gas 5 | Optimize traditional business 6 | Financial frame 7 | Closing remarks 27 | OMV Petrom Strategy 2030
Slide 28: Maximize potential of current E&P assets
Maximize potential of current E&P assets Focus on most profitable Value over volume Strict cost management barrels Maximize economic recovery: Enhance competitiveness Portfolio optimization through cost optimization > 400 workovers p.a. Disciplined approach on Streamline footprint and ca
Slide 29: Transforming while delivering strong cash flows
Transforming while delivering strong cash flows Hydrocarbon production Production cost Operating cash flow kboe/d USD/boe USD/boe > 160 -35% 138 > 5% 30% ~13 CAGR 11 ~100 46% 50% ~7 11 70% 54% 50% 2020 2025 2030 2020 2025 2030 2020 2025 2030 Gas Oil 29 | OMV Petrom Strategy 2030
Slide 30: Petrobrazi to capture demand growth
Petrobrazi to capture demand growth Refinery utilization1 > 95 % Annual average 2022-2030 Expand aromatics kt/year +50 2026 Black liquid products yield2 -50% 2030 vs 2020 Bottom of the barrel upgrade3 ~200 kt/year 2030 1 Refers to crude distillation unit; 2 fuel oil yield decreases from 6% in 2020;
Slide 31: Dual brand strategy to drive new value
Dual brand strategy to drive new value Customer focus Throughput per filling station1 Profitability per filling station2 Non-fuel business margin2 mn l k EUR EUR mn 20% 20% 100% 5 80 2020 2025 2030 2020 2025 2030 2020 2025 2030 31 | OMV Petrom Strategy 2030 1 in Romania ; 2 Data refer to OMV Petrom
Slide 32: Mobility services of the future
Mobility services of the future #The future is diverse #Mobility and service hub #Digitally enabled smart mobility Customer access – is a competitive Service stations – enable our network One single digital gate to our brand – advantage which will allow us to make to increase receptiveness to custom
Slide 33: Support gas and power customers in their energy transition
Support gas and power customers in their energy transition Total gas sales TWh 70 2030 Customers increase 20x 2030 vs 2020 Net electrical output TWh/year > 3.5 Average 2022-2030 Green power sales volume % in total > 20% 2030 33 | OMV Petrom Strategy 2030
Slide 34: Agenda
Agenda 1 | Strategy overview 2 | Energy context 3 | Transition to low and zero carbon 4 | Grow regional gas 5 | Optimize traditional business 6 | Financial frame 7 | Closing remarks 34 | OMV Petrom Strategy 2030
Slide 35: Our strategy is enabled by a resilient financial frame
Our strategy is enabled by a resilient financial frame Rigorous capital Strong financial Attractive returns to discipline performance shareholders CAPEX1 of ~EUR 11 bn We target more than 5%-10% p.a. dividend ~35% CAPEX for low & double clean CCS EBIT growth zero carbon business by 20302 D
Slide 36: Rigorous capital discipline underpins strategic directions
Rigorous capital discipline underpins strategic directions Average annual CAPEX per strategic pillar CAPEX breakdown per business segment EUR bn EUR bn 80% 1.3 1.3 1.1 1.1 IRR > 9% 0.7 0.7 IRR >12% IRR > 12% 2017-2021 2022-2025 2026-2030 2017-2021 2022-2025 2026-2030 Low and zero carbon Gas & Power
Slide 37: Strong financial performance across the entire business
Strong financial performance across the entire business Clean CCS EBIT Clean CCS EBIT Clean CCS ROACE per strategic pillar1 per business segment1 % EUR bn % > 1.5 5 > 12 40 9 ~ 0.7 7 10 0.5 60 55 33 67 30 2020 2025 2030 2020 2025 2030 2020 2025 2030 Low and zero carbon Gas & Power Regional gas Refin
Slide 38: Committed to highly competitive dividend distribution over the strategic cycle
Committed to highly competitive dividend distribution over the strategic cycle Dividend increase Special dividends Dividends p.a. on average % of operating cash flow1 In favorable market environment, at management 5%-10% discretion, provided that our ~40% CAPEX plans are funded. € Dividend Committed
Slide 39: Resilience under downside-price scenario
Resilience under downside-price scenario1 Clean CCS EBIT EUR bn Base case Downside scenario Under downside price scenario: > 1.5 2030 Clean CCS EBIT to double versus 2020 Commitment to pay progressive dividends ~1.0 maintained 0.7 CAPEX plans largely unchanged by 2030 0.5 0.5 0.4 Gearing rat
Slide 40: We deliver sustainable long-term value for our shareholders
We deliver sustainable long-term value for our shareholders Sustainable long-term value Attractive shareholders returns Delivering ~35% CAPEX for low & zero carbon sustainable 5% - 10% p.a. growth in base dividend Clean CCS EBIT more than double shareholder Potential special dividends by 203
Slide 41: Agenda
Agenda 1 | Strategy overview 2 | Energy context 3 | Transition to low and zero carbon 4 | Grow regional gas 5 | Optimize traditional business 6 | Financial frame 7 | Closing remarks 41 | OMV Petrom Strategy 2030
Slide 42: Strategy 2030: Transforming for a lower carbon future
Strategy 2030: Transforming for a lower carbon future Capture growth business opportunities to ensure leading role in Energy Transition in Romania and SEE The largest private investor in the Romanian energy sector Black Sea gas to play a key role Net zero operations by 2050 Significantly reduc
Slide 43: Contact
Contact OMV Petrom Investor Relations E-mail: investor.relations.petrom@petrom.com Tel: +40 372 161 930 Homepage: www.omvpetrom.com 43 | OMV Petrom Strategy 2030
Slide 44: OMV Aktiengesellschaft
@ OMV Petrom The energy for a better life.
Slide 45: Backup slides
Backup slides 45 | OMV Petrom Strategy 2030
Slide 46: Sensitivities and price assumptions
Sensitivities and price assumptions 2022 sensitivities EBIT impact Price assumptions2 2022 – 2030 Brent oil price USD +1/bbl ~EUR +17 mn Brent oil 65 – 70 USD/bbl Equity gas price EUR +1/MWh ~EUR +10-151 mn Indicator refining margin 5–6 USD/bbl OMV Petrom indicator USD +1/bbl ~EUR +25 mn CO2 55 – 10
Slide 47: Our current business model
Our current business model Moldova Ukraine Romania 77 Moldova Romania 158 46% 62% Production 1P reserves Black Sea 51 mn boe 451 mn boe 402 Refinery Serbia 54% 38% Gas-fired power plant Gas Oil 63 93 Bulgaria Bulgaria - Han Asparuh Bulgaria Refining & Marketing Gas & Power ► Petrobrazi refinery, 4.5