79 slides from Mol Hungarian Oil & Gas Plc Class A's investor presentation, August 2023
Slide 1: MOL Group Investor Presentation August 2023
MOL GROUP INVESTOR PRESENTATION August 2023
Slide 2: MOL Group in Brief
MOL GROUP IN BRIEF INTEGRATED CENTRAL EUROPEAN MID-CAP OIL & GAS COMPANY CORE ACTIVITIES UPSTREAM DOWNSTREAM CONSUMER WASTE GAS Exploration SERVICES MANAGEMENT Petrochemicals MIDSTREAM Retail Production Refining Mobility CLEAN CCS EBITDA BY SEGMENTS IN 2022 (USD MN) UPSTREAM DOWNSTREAM CONSUMER GAS
Slide 3: MOL Group Geography
MOL GROUP GEOGRAPHY CEE-BASED INTEGRATED OPERATIONS AND INTERNATIONAL UPSTREAM POLAND SLOVAKIA RUSSIA NORWAY CZECH REP. KAZAKHSTAN HUNGARY AZERBAIJAN HQ SLOVENIA IRAQ PAKISTAN CROATIA ROMANIA EGYPT SYRIA (IN FORCE MAJEURE) BOSNIA SERBIA MONTENEGRO UPSTREAM DOWNSTREAM CONSUMER SERVICES 3
Slide 4: Agenda
AGENDA THE MOL GROUP EQUITY STORY 5 SUPPORTING SLIDES Q2 2023 RECAP (LINK TO Q2 2023 RESULTS) DOWNSTREAM 12 CONSUMER SERVICES 31 EXPLORATION AND PRODUCTION 45 WASTE MANAGEMENT 54 FINANCIALS, GOVERNANCE AND OTHERS 61 4
Slide 5: The MOL Group Equity Story
v THE MOL GROUP EQUITY STORY = ~ - 4 TOMORROW > MOLGROUP
Slide 6: Deliver Today, Shape Tomorrow
DELIVER TODAY, SHAPE TOMORROW MOL 2030+: unchanged direction however security of supply plays a key role in the current environment ESG: Climate: 30% reduction of Scope 1 and 2 emissions by 2030, net zero emissions by 2050 EU taxonomy aligned CAPEX: targeting 50% threshold by 2030 Downstream: increa
Slide 7: MOL 2030+: Unchanged Direction, Unfolding Transition
MOL 2030+: UNCHANGED DIRECTION, UNFOLDING TRANSITION WHILST ALSO MAINTAINING SECURITY OF SUPPLY STRATEGY 2030+ We set the We delivered We need to right strategy on our interim proceed with in 2016 promises the transition KEY DIRECTIONS UNCHANGED… …WITH ADDITIONAL FOCUS ON Downstream transformation:
Slide 8: MOL 2030+: Profitably Towards Net-Zero
MOL 2030+: PROFITABLY TOWARDS NET-ZERO ACCELERATED LOW-CARBON TRANSITION 8
Slide 9: ESG: Climate/CO2 in Focus, But All Stakeholders Matter
ESG: CLIMATE/CO2 IN FOCUS, BUT ALL STAKEHOLDERS MATTER AMBITIOUS TARGETS ON SUSTAINABLE INVESTMENTS CLIMATE/CO2 TARGETS OTHER STAKEHOLDER-RELATED TARGETS Reducing group-level Scope 1+2 emissions by 30% by 2030 CLIMATE & New waste management and water reservation ENVIRONMENT* strategy Downstream to C
Slide 10: GHG: Downstream and Fuel Sales Biggest Contributors
GHG: DOWNSTREAM AND FUEL SALES BIGGEST CONTRIBUTORS SCOPE 1+2 IS 11% OF MOL’S TOTAL GHG FOOTPRINT TOTAL GHG EMISSIONS SCOPE 1, 2 AND 3 REPORTING AND DISCLOSURE Scope 3 accounts for 89% of MOL Group’s total GHG emission footprint Climate related disclosures produced Downstream accounts for 85% of MOL
Slide 11: ESG: Sector-Leading Ratings and Disclosure
ESG: SECTOR-LEADING RATINGS AND DISCLOSURE TOP POSITIONS ACROSS LEADING ESG RATINGS INDEXES AND RATINGS DISCLOSURE Leading ESG disclosure through Integrated Reporting “AA” rating fifth year in a row, using SASB, TCFD, and GRI for several years staying at the top ~20% among integrated o&g peers Clima
Slide 12: Downstream
DOWNSTREAM SHAPE TOMORROW > MOLGROUP
Slide 13: Integrated Downstream Model in CEE
INTEGRATED DOWNSTREAM MODEL IN CEE DOWNSTREAM IN NUMBERS MARKET SHARE (%) GROUP REFINERY YIELD 2022 (%) 11 COUNTRIES <10% 10-20% 20-40% 40+% 7,1% 8,6% 33,3% 5 51,0% SALES OF 17.4 mtpa Middle distillates Other products REFINED PRODUCTS Light-products Heavy-products AND 1.2 mtpa REFINERY NELSON COMPLE
Slide 14: Deep Downstream Integration
DEEP DOWNSTREAM INTEGRATION FUEL AND PETROCHEMICAL VALUE CHAIN 1 Internal feedstock2: Capacity ~2.1 Mt in 2022 HDPE 420 kt OLEFINS Petchem (ETHYLENE, ~15% PROPYLENE, LDPE 285 kt C4 STREAM) ~45% own Ethylene PP 535 kt market 3 890 kt From 2023 Refining ~80% captive Propylene ~85% market POLYOL 205 kt
Slide 15: 2050 Vision: Highly Efficient, Sustainable, Chemical-Focused
2050 VISION: HIGHLY EFFICIENT, SUSTAINABLE, CHEMICAL-FOCUSED WE HAVE A LONG-TERM VISION TO BECOME A SUSTAINABLE CHEMICALS COMPANY AND POWERING MOBILITY WITH AN AMBITION TO REDUCE CARBON FOOTPRINT AND STRIVING TO REACH NET ZERO EMISSION SUSTAINABLE CHEMICALS WE ARE THE (CENTRAL) EUROPEAN POWERING CHA
Slide 16: Integrating Circular Economy into Our Core Business
INTEGRATING CIRCULAR ECONOMY INTO OUR CORE BUSINESS INTEGRATING BIO- AND WASTE-BASED STREAMS IN PRODUCTION AND SCALING UP RECYCLING IN OUR FEEDSTOCK… … IN OUR OPERATIONS … … IN OUR PRODUCT PORTFOLIO Refinery Industry Sustainable Fuels (e.g biofuels, hydrogen, biogas, electricity) Homes Renewable Ele
Slide 17: 2030 Directions Still Valid, Sustainability in Focus
2030 DIRECTIONS STILL VALID, SUSTAINABILITY IN FOCUS KEY PILLARS OF THE 2030 STRATEGY REMAIN INTACT 2030 Target Keep market share across the 2020s and harvest existing position EFFICIENCY & Sufficient EBITDA Push for efficiency: to be among the most efficient refiners in Europe PROFITABILITY generat
Slide 18: Boosting Efficiency to Be Among the Best Refiners in Europe
BOOSTING EFFICIENCY TO BE AMONG THE BEST REFINERS IN EUROPE FOSSIL FUELS WILL REMAIN PROFITABLE IN THE 2020S Fossil fuels to be dominant and profitable across the 2020s HARVEST MARKET 1st quartile in Defend market share and profitability on our core markets NCM 1 Maximize profitability of our refine
Slide 19: Adria Pipeline Provides Alternative Crude Supply
ADRIA PIPELINE PROVIDES ALTERNATIVE CRUDE SUPPLY PRELIMINARY ESTIMATES SUGGEST UP TO USD 500-700MN INVESTMENT WOULD BE NEEDED FOR FULL DIVERSIFICATION ALTERNATIVE CRUDE SUPPLY ROUTE THROUGH THE ADRIA CURRENT CAPABILITIES We have spent USD 170 mn on crude supply CZ diversification pre-war Bucany Budk
Slide 20: Turning the Changing Landscape into an Opportunity
TURNING THE CHANGING LANDSCAPE INTO AN OPPORTUNITY WHILST HARVEST MARKET POTENTIAL DEMAND INCREASE SUPPLY DECREASE Regional fuel markets EU sanctions due to the stagnating / slightly Russian invasion of Ukraine growing in the coming ~10 years EU ban on import of oil products of Russian origin, Diese
Slide 21: Continuing Rijeka Refinery Upgrade
CONTINUING RIJEKA REFINERY UPGRADE INSTALLATION OF A DELAYED COKER UNIT (DCU) ENABLING FULL CONVERSION AND UTILIZATION Rijeka Refinery Upgrade Project is the largest single investment project in INA’s history Engineering and purchasing completed STATUS 70% Port and related logistics enabling sale of
Slide 22: The Polyol Project: Step Forward in the Propylene Value Chain
THE POLYOL PROJECT REPRESENTS AN IMPORTANT MILESTONE FOR STEPPING FORWARD IN THE PROPYLENE VALUE CHAIN LARGEST ORGANIC INVESTMENT IN MOL GROUP HISTORY POLYOL PROJECT MARKET Moving from commodity (polypropylene) In CEE there is still gap in supply-demand DRIVER to semi commodity 205 ktpa of polyol TA
Slide 23: Beyond-Polyol: Smaller Value Chain Extension Projects by 2030
BEYOND-POLYOL: SMALLER VALUE CHAIN EXTENSION PROJECTS BY 2030 2030 Target Additional USD LARGE-SCALE INVESTMENTS ~150 mn Polyol: 99.3% completion as of Dec 2022, start-up planned for 2023, gradual ramp-up EBITDA p.a. Implement metathesis project by 2024 FOCUS ON SMALL- USD 300 mn total CAPEX Greenfi
Slide 24: Reducing CO2 Footprint by 20% and Integrating Waste
REDUCING CO2 FOOTPRINT BY 20% AND INTEGRATING WASTE FROM ADVANCED BIOFUEL PRODUCTION THROUGH WASTE-TO-CHEMICALS INTEGRATION TO CARBON CAPTURE 2030 Target Reducing CO2 emissions, striving for net zero by 2050: MINIMIZE -20% Energy Efficiency to contribute ~0.4 mtpa CO2 reduction until 2030 FOOTPRINT
Slide 25: Downstream CO2 Reduction Pathway
DOWNSTREAM HAS A CLEAR PATHWAY TO REACH ITS STRATEGIC CO2 REDUCTION TARGETS DS CO2 REDUCTION ROADMAP KEY ACTIONS ENERGY Continuous implementation of ENERGY EMERGING AND EFFICIENCY efficiency projects EFFICIENCY LOW-CARBON TECHNOLOGIES -20% Green hydrogen production First pilot project with 10 MW ele
Slide 26: First Steps in the Hydrogen Development Roadmap
MOL GROUP HAS MADE FIRST STEPS IN THE HYDROGEN DEVELOPMENT ROADMAP MOL GROUP HYDROGEN PRODUCTION HAS A SIGNIFICANT POTENTIAL TO CONTRIBUTE TO DS CO2 TARGETS ORGANIZATIONAL SETUP FIRST PILOT PROJECT Dedicated H2 team and program Implementation of the 1st 10 MW 2022 management under the New and electr
Slide 27: Renewables in Transportation Fuels Increasing
RENEWABLES IN TRANSPORTATION FUELS INCREASING ADVANCED BIOFUELS ARE KEY ELEMENT OF FUTURE COMPLIANCE 2022 2030 Bio blending activity in 7 countries Renewables volume expected to reach almost 1 million tons (RED III before publication by EU) 600+ kt liquid biofuels blended worth 1+ bn USD Conventiona
Slide 28: From Linear to Circular: Plastic Waste Recycling and Compounding
FROM LINEAR TO CIRCULAR: GIVING PLASTIC WASTE A NEW LIFE THROUGH RECYCLING AND COMPOUNDING 100+ KTPA Current status Ongoing developments POLYMER RECYCLING & COMPOUNDING CAPACITY SCALE-UP 40 KTPA CAPACITY With the acquisitions of German Further organic and inorganic recyclate-based compunder, AURORA
Slide 29: Modular Transformation – Indicative Roadmap
MODULAR TRANSFORMATION – INDICATIVE ROADMAP RETAINING A LEADING POSITION AND GENERATE ATTRACTIVE RETURN IN THE 2020S WHILE TRANSFORMING 2023 POLYOL PROJECT MECHANICAL 2022-2025 2027-2030 COMPLETION RECYCLING SCALE UP FUEL TRANSFORMATION (220 KTPA) 2022 2025 2030 2024 2024 2025 2030 INA DCU CO2 REDUC
Slide 30: Consumer Services
CONSUMER SERVICES SHAPE TOMORROW > MOLGROUP
Slide 31: A Leading Regional Network
A LEADING REGIONAL NETWORK POLAND MARKET POSITION: 3 MARKET SHARE: 5% TOP 3 IN 100 % OF THE NETWORK CZECH R. 10 COUNTRIES MARKET POSITION: 3 MARKET SHARE: 12% SLOVAKIA MARKET POSITION: 1 MARKET SHARE: 36% HUNGARY MARKET POSITION: 1 MARKET SHARE: 33% 6 WELL ESTABLISHED BRANDS ROMANIA SLOVENIA MARKET
Slide 32: Become a Digitally-Driven Consumer Goods Retailer and Mobility Provider
BECOME A DIGITALLY-DRIVEN CONSUMER GOODS RETAILER AND INTEGRATED, COMPLEX MOBILITY SERVICE PROVIDER BY 2030 Regional leader in fuel Continuous improvement Diversification of and convenience retailing of operational efficiency sales channels Organic expansion of the network in Strong standardization
Slide 33: CEE Market Leader in Fuel & Convenience Retailing
CEE MARKET LEADER IN FUEL & CONVENIENCE RETAILING 1 USD ~700 mn EBITDA 2 USD~1,800 mn FCF in 5 years 3 63% convenience sales increase Market leader in fuel & 4 42% fuel volume increase convenience retailing 5 50% increase in active loyalty customers 6 Net zero CO2 emission (Scope 1 and 2) 33
Slide 34: Consumer Services Will Reach USD ~700 mn EBITDA by 2025
CONSUMER SERVICES WILL REACH USD ~700 MN EBITDA BY 2025 TOTAL GROSS MARGIN TO GROW BY AROUND 75% FROM A 2022 BASE FUEL AND NON-FUEL MARGIN CONTRIBUTION (USD MN) 2016 2022 2023 2025 77% EBITDA (USD) 307mn 320mn ~460mn ~700mn ~1,600 CAPEX1 (USD) 220mn 167mn ~190mn ~180+mn ~1,400 31% SFCF2 (USD) 87mn 1
Slide 35: Significant Progress in Network Expansion Since 2021
SIGNIFICANT PROGRESS MADE IN NETWORK EXPANSION SINCE 2021 ACQUIRING 500+ STATIONS IN THE REGION 2021 Q1 2022 Q1 2022 Q4 2023 Q2 MOL acquired 100% shareholding In December 2022, MOL Group in Marché Restaurants Hungary acquired 417 Lotos remedy SeSs in Kft. for 9 highway restaurants. Poland (mixed COC
Slide 36: Strengthening CEE Leadership in Fossil Fuel Retailing
STRENGTHENING CEE LEADERSHIP IN FOSSIL FUEL RETAILING THROUGH EXPANDING NETWORK COVERAGE AND PORTFOLIO UPGRADE FUEL VOLUMES (BN LITERS) STRENGTHENING LEADING POSITION IN CEE CAGR 6% Strengthened regional market-leading position through ~7,900 ~8,200 ~8,300 maintaining market share 6,897 5,976 5,400
Slide 37: Expanding the Alternative Fuel Portfolio
EXPANDING THE ALTERNATIVE FUEL PORTFOLIO TO COMPENSATE THE SHRINKING OPPORTUNITIES IN FOSSIL FUELS BEYOND 2025 2016-2020 2021-2025 Beyond Foundations Accelerating 2025 in EV- growth and Step charging pilots change Capability and knowledge building Build additional presence in the Significant investm
Slide 38: Further Development in Food and Convenience Offerings
FURTHER DEVELOPMENT IN FOOD AND CONVENIENCE OFFERINGS BY BUILDING ON OUR OWN FMCG CAPABILITIES NON-FUEL SALES (USD MN) IMPROVING FMCG CAPABILITIES CAGR Increase gross margin contribution of consumer goods to 7% ~1 700 ~1 800 ~1 600 35% and improve unit margin to reach 25% by 2025 driven 1 374 1 349
Slide 39: Diversification of Sales Channels
DIVERSIFICATION OF SALES CHANNELS THROUGH DIGITAL TRANSFORMATION AND FRANCHISE OPERATION 2016-2020 2021-2025 Beyond Digital and 2025 Synergies & data-driven platform Step operation building change Supporting traditional loyalty Start personalizing retail customers’ Integrate retail and mobility to s
Slide 40: New Digital Loyalty Rewards Program Expansion
NEW DIGITAL LOYALTY REWARDS PROGRAM EXPANSION DRIVE TRANSFORMATION FROM PHYSICAL LOYALTY CARDS TO MOBILE APPS MOL MOVE MOBILE APP DOWNLOADS (MN, GROUP-LEVEL) >4 3,5 3,0 X2,5 1,8 X3,5 x2 0,7 0,2 0,1 2019 2020 2021 2022 2023 2024 2025 Successful launches in Croatia (2020), Slovenia (2021) and 2022 tar
Slide 41: Mobility Services to Grow Further
MOBILITY SERVICES TO GROW FURTHER AND EXPLOIT SYNERGIES THROUGH DIGITAL PLATFORMS 2016-2020 2021-2025 Beyond Start and Synergies & 2025 capability platform Step building building change Capabilities built in B2C and B2B Building synergies between existing Offering seamless, digitally customer brands
Slide 42: Sustainability Goals
SUSTAINABILITY GOALS Carbon neutrality by 2030: renewable energy c to cover the consumption of the service station network, including the EV chargers Conscious waste management Extensive use of recyclable materials (e.g. coffee cups) at Service Stations 42
Slide 43: ~USD 1.8bn Simplified FCF in 2021-25
~USD 1.8BN SIMPLIFIED FCF IN 2021-25 RISING EBITDA TO YIELD HIGHER SIMPLIFIED FREE CASH FLOW IN 2021-2025 EBITDA AND FCF IN 2021-2025 (MN USD) DRIVERS 2,800 1,000 100 100 Increasing cash generation from non-fuel EBITDA 200 through growing Retail EBITDA share from 21% in 700 2021 to 24% in 2025 700 1
Slide 44: Exploration and Production
EXPLORATION AND PRODUCTION SHAPE TOMORROW > MOLGROUP
Slide 45: 348 MMboe 2P Reserves and ~90 mboepd Production
348 MMBOE 2P RESERVES AND ~90 MBOEPD PRODUCTION CEE INTERNATIONAL Reserves: 139.7 MMboe Reserves: 208.5 MMboe Production: 57.0 mboepd Production: 34.6 mboepd HUNGARY CIS Reserves: 57.1 MMboe Reserves: 140.7 MMboe Production: 33.8 mboepd Production: 18.2 mboepd CROATIA MEA Reserves: 82.6 MMboe Reserv
Slide 46: ~92 mboepd, Delivered in Line with Guidance for 2023
~92 MBOEPD, DELIVERED IN LINE WITH GUIDANCE FOR 2023 ACG E&P International excl. ACG CEE PRODUCTION1 (MBOEPD) COMMENT 120 111 Production is ~92 mboepd, above guidance for 2023 18 97 ~90 92 92 42 17 14 14 2023 H1: Natural decline in CEE is mitigated by the improving 40 23 22 20 performance of Hungary
Slide 47: Production Guidance at ~90-100 mboepd for 2023-2027
PRODUCTION GUIDANCE AT ~90-100 MBOEPD FOR 2023-2027 2023-2027 PRODUCTION GUIDANCE1 (MBOEPD) CEE – WE HAVE TO RUN FAST TO STAND STILL Production Optimization and efficiency measures to 97 mitigate baseline decline 92 ~90-100 17 Focus on field development next to active exploration 14 Surface facility
Slide 48: Unit Free Cash Flow at 15 USD/bbl in H1 2023
UNIT FREE CASH FLOW AT 15 USD/BBL IN H1 2023 PRICE REALIZATION, EBITDA, SIMPLIFIED FCF1,2 (USD/BOE) 110 80 71 71 Brent price 64 Realized HC price 42 57 Unit EBITDA 25 27 18 15 Unit Simplified FCF 9 2018A 2019A 2020A 2021A 2022A 2023H1 992 747 409 971 1,905 241 SFCF (USD mn) 1 Simplified free cash fl
Slide 49: ACG Contribution in 2022 Exceeding Expectations
ACG CONTRIBUTION IN 2022 EXCEEDING EXPECTATIONS 2022 PERFORMANCE AND ASSET SUMMARY OVERVIEW OF PSA REGIME1 Investing 415 mboepd (gross) companies Government Signature Very strong cash generation on the back of high oil prices Bonus As part of drilling program 15 new wells drilled Gross Production Su
Slide 50: E&P Vision: Net Zero by 2030
E&P VISION: NET ZERO BY 2030, OPPORTUNISTIC APPROACH IN INTERNATIONAL E&P AND MANAGED DECLINE IN CEE CLIMATE STRATEGY CEE INTERNATIONAL (INCLUDING ACG) Net-zero until 2030 (Scope 1 and Scope 2) Transform the largest Pannonian oil Further improve quality and cash- EOR opportunities and CCUS pilot and
Slide 51: CCUS Projects Supporting Our Net Zero Aspiration
CCUS PROJECTS SUPPORTING OUR NET ZERO ASPIRATION CO2 PRICE (EUR/T) WHERE ARE WE? 100 Technically screened different CO2 storage locations in Hungary and Croatia for permanent storage in depleted oil & gas fields To expand potential storage capacities technical screening of 80 aquifers shall be perfo
Slide 52: USD ~2.2bn CAPEX to Be Spent in 2023-2027
USD ~2.2BN CAPEX TO BE SPENT IN 2023-2027 2023-2027 CAPEX SPENDING1 CEE Unlock more of the remaining potential in the region USD ~2.2bn Major projects: Ramp-up of Croatian offshore campaign Sustain & Other ~20% Shallow gas exploration in Hungary ~25% Other International Cross-border projects ACG ~25
Slide 53: Waste Management
WASTE MANAGEMENT SHAPE TOMORROW > MOLGROUP
Slide 54: MOL Takes Significant Step Towards Expanding in Circular Economy
MOL TAKES SIGNIFICANT STEP TOWARDS EXPANDING IN CIRCULAR ECONOMY HIGHLIGHTS OF THE RECENTLY AWARDED WASTE MANAGEMENT CONCESSION MOL will be responsible as a single licensor for the collection of close to 5 mn tonnes of municipal CONCESSION solid waste and will also ensure waste pre-treatment FRAMEWO
Slide 55: The Concession Is Expected to Cover ~5 mn Tonnes of Waste
THE CONCESSION IS EXPECTED TO COVER ~5 MN TONNES OF WASTE AND THE WHOLE TERRITORY OF HUNGARY COMPOSITION OF WASTE BY SOURCE (HUNGARY, 2019) FRAGMENTED OPERATION IN RING-FENCED REGIONS Total waste: 20 mn tons 4% 3% 13% 35% MOL’S SCOPE : 18% 4.7 mn tons (mainly municipal solid 27% waste) 26 services p
Slide 56: Efficiency Gains and Minimizing Landfill Provide Improvement Potential
EFFICIENCY GAINS AND MINIMIZING LANDFILL PROVIDE SIGNIFICANT IMPROVEMENT POTENTIAL CURRENT WASTE MANAGEMENT SYSTEM MUNICIPAL WASTE HANDLING IN THE EU Low coverage of waste transfer stations 50% 36% Current utilization is cca. 50% 45-65% Oversized capacities 14% 40% Facility network operates at 40% >
Slide 57: 2023 Work Plan Focuses on Deposit Refund System Roll-Out
2023 WORK PLAN FOCUSES ON DEPOSIT REFUND SYSTEM ROLL-OUT 10 YEARS INVESTMENT PLAN 2023 FOCUS AREAS Main focus to prepare for starting deposit refund system In line with MOL group’s strategy and concession (DRS) – discussion with 10 retail chains, install 3000+ requirement, significant, 600 - 800 mil
Slide 58: Unique Capabilities to Support Successful Implementation
UNIQUE CAPABILITES TO SUPPORT SUCESSFULL IMPLEMENTATION WASTE MANAGEMENT Waste handling of 100-120th tonnes p.a. within current operations EXPERIENCE Recycled material utilization and recycling technology development INTEGRATED VALUE Value chain management and operational experience within the CEE (
Slide 59: Integrated Waste Management Concession
INTEGRATED WASTE MANAGEMENT CONCESSION EXTENDED SERVICE SCOPE WITH MANAGING ROLE IN THE WHOLE VALUE CHAIN Extended Public Service Current public Deposit Refund Waste falls under product fee Industrial - Construction and Other solid System (public and industrial origins) production Demolishon waste s
Slide 60: Financials, Governance and Others
FINANCIALS, GOVERNANCE AND OTHERS
Slide 61: On Track to Meet 2023 Guidance
ON TRACK TO MEET 2023 GUIDANCE 2022 H1 2023 2023 RESULTS4 RESULTS GUIDANCE NEW GROUP CLEAN CCS ~ USD 2.5 BN USD 4.7 BN USD 1.13 BN EBITDA OIL & GAS 92 MBOEPD 91.6 MBOEPD ~90 MBOEPD PRODUCTION1 CRUDE PROCESSING2 11.8 MT 5.9 MT ~12 MT GROUP CAPEX USD 1.52 BN USD 473 MN <1.7 BN (ORGANIC) NET DEBT/EBITD
Slide 62: Strong Performance Despite Regulatory Headwinds in 2022
STRONG PERFORMANCE DESPITE REGULATORY HEADWINDS IN 2022 MAINLY SUPPORTED BY UPSTREAM AND DOWNSTREAM CONTRIBUTION CLEAN CCS EBITDA (USD BN) 4.7 3.5 2.2 2.7 1.6 2.4 2.4 1.3 2.0 0.9 1.1 0.7 1.5 2.2 1.1 1.2 1.0 0.9 0.7 0.4 0.4 0.4 0.4 0.5 0.5 0.6 0.3 0.3 0.2 0.2 0.2 0.2 0.1 0.2 0.1 -0.2 -0.2 -0.1 -0.1 -
Slide 63: Consistent Simplified FCF Generation
CONSISTENT SIMPLIFIED FCF GENERATION FUNDING SUSTAIN AND TRANSFORMATIONAL PROJECTS SIMPLIFIED FCF (USD BN) 3.2 2.0 1.8 1.4 1.2 1.4 0.5 0.4 1.0 0.6 1.5 0.8 0.7 0.7 0.7 0.4 0.2 0.4 0.0 0.2 0.2 0.2 0.3 0.4 0.5 0.2 0.2 0.2 0.2 0.1 0.2 0.1 0.1 0.1 -0.2 -0.3 -0.3 -0.1 -0.5 -0.5 -0.5 -0.3 2017 2018 2019 20
Slide 64: Sustain CAPEX Expected at USD 1.1-1.2bn in 2023-27
SUSTAIN CAPEX EXPECTED TO FLUCTUATE BETWEEN USD 1.1- 1.2BN IN 2023-27 SUSTAIN CAPEX (USD BN) COMMENTS 1.3 2023-27 sustain CAPEX is expected to 1.3 1.1-1.2 be largely in line with 2018-22 spending 1.2 1.1 (excl. the 2020 COVID year) 0.4 0.4 Sustain CAPEX mainly consists of: 1.0 0.9 0.4 0.3 Maintenanc
Slide 65: Government Take Continues to Have Significant Effect
GOVERNMENT TAKE CONTINUES TO HAVE SIGNIFICANT EFFECT EXTRA BURDEN ON 2022 LEVELS IN 2023, IMPLYING HIGHER TAKE RELATIVE TO PROFITS EXTRA GOVERNMENT TAKE 1 (USD MN) COMMENTS Ural-Brent spread Government take remains elevated in 2023 after 1,006 USD 2.3bn effect in 2022 Extra mining royalty 77 Extra r
Slide 66: USD 3-3.5bn Strategic CAPEX Budgeted for 2023-27
USD 3-3.5BN STRATEGIC CAPEX BUDGETED FOR THE 2023-27 PERIOD TO FUND TRANSFORMATION AND NEW, LOW-CARBON BUSINESSES STRATEGIC, GROWTH, TRANSFORMATIONAL CAPEX IN COMMENTS 2023-27 USD 3.0-3.5bn Investments in new, low-carbon, circular Up to 1.0 economy businesses including waste Annual distribution of t
Slide 67: Fully Funded Transformation and Base Dividends in 2023-27
FULLY FUNDED TRANSFORMATION AND BASE DIVIDENDS IN 2023-27 EVEN BELOW MID-CYCLE MACRO ENVIRONMENT MACRO DRIVERS REQUIRED TO REACH FINANCIAL FRAMEWORK ASSUMING CF BREAKEVEN (2023-27, USD BN)1,2 POST DIVIDEND CF BREAK-EVEN ~12.0 – 12.5 Macro conditions required to generate CF neutrality: 5.5-6.0 Oil: ~
Slide 68: Base Dividend Increased by 50% in One Step in 2023
BASE DIVIDEND INCREASED BY 50% IN ONE STEP IN 2023 COMPLEMENTED BY SIZEABLE SPECIAL PAYOUTS IN 2018, 19, 22, 23 DIVIDEND PER SHARE1 (HUF) 3.0% 2.9% 4.6% 3.8% 5.5% Dividend 3.5% 3.0% +1.5% +7.7% +7.3% yield2 +1.5% Special dividend Regular dividend 202 202 48 43 152 85 95 95 100 71 78 0 2016 2017 2018
Slide 69: Ample Financial Headroom
AMPLE FINANCIAL HEADROOM FROM DIVERSIFIED FUNDING SOURCES AVERAGE MATURITY OF 3.2 YEARS Reported cash & cash equivalents Medium term loan Undrawn facilities Senior Unsecured Bonds Long term loan 2,000 1,500 440 22 USD mn 217 1,000 1,495 521 500 884 967 294 1,001 0 288 0 38 7 33 63 Reported cash&cash
Slide 70: Full Investment Grade Rating Maintained
FULL INVESTMENT GRADE RATING MAINTAINED ROBUST BALANCE SHEET WITH AMPLE FINANCIAL HEADROOM HISTORICAL FOREIGN LONG TERM RATINGS COMMENTS In June 2023 Fitch revised outlook to stable from negative while reaffirming investment grade rating of BBB- In July 2023 Standard & Poor’s performed annual review
Slide 71: History of INA & MOL, 2003-2022
THE HISTORY OF INA & MOL, 2003-2022 STORYLINE SHAREHOLDER AGREEMENTS UNDER THE FASHA, MOL DELEGATES FIVE 1ST SHAREHOLDER RIGHTS AGREEMENT (SHA): MOL AND THE GOVT OF CROATIA SIGN THE GAS OUT OF NINE MEMBERS TO THE MOL ALLOWED TO NOMINATE TWO MEMBERS 1ST AMENDMENT MASTER AGREEMENT (GMA) AND AN SUPERVI
Slide 72: MOL-Croatia Arbitrations
MOL-CROATIA ARBITRATIONS UNCITRAL ARBITRATION ICSID ARBITRATION (CROATIA VS. MOL) (MOL VS. CROATIA) INITIATED GOVERNMENT OF CROATIA MOL BY WHEN 17 JANUARY 2014 26 NOVEMBER 2013 PCA (PERMANENT COURT OF ARBITRATION), GENEVA ICSID (INTERNATIONAL SETTLEMENT OF INVESTMENT FORUM UNDER UNCITRAL (UNITED NAT
Slide 73: Shareholder Structure
SHAREHOLDER STRUCTURE1 Treasury shares UniCredit Bank AG ING Bank N.V. 3,4% 3,8% 3,8% OTP Bank Plc. 4,9% Foreign investors (mainly institutional) 30,6% MOL Plc. SESOP Organizations 7,9% Free-float 45.7% Mathias Corvinus Collegium Foundation 10,0% 9,1% 10,0% Domestic institutional Maecenas Universita
Slide 74: Favourable Macro Conditions in Place in 2022
FAVOURABLE MACRO CONDITIONS IN PLACE IN 2022 BUT ADVERSE REGULATORY IMPACTS ARE NOT CAPTURED BY THE MACRO DRIVERS EXTERNAL ENVIRONMENT* VS MOL CLEAN CCS EBITDA (USD MN) 105% 1600 90% 1400 1200 75% 1000 60% 800 45% 600 30% 400 15% 200 0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 75: MOL Group Refinery and Petchem Margins
MOL GROUP REFINERY AND PETCHEM MARGINS BRENT-BASED MOL GROUP REFINERY MARGIN1 (USD/bbl) PETROCHEMICALS MARGIN (EUR/t)(2)(3) 19 600 17 15 500 13 11 400 9 7 300 5 200 3 1 100 -1 -3 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018-2022 range origina
Slide 76: EBITDA Sensitivities vs 10 Year Macro History
EBITDA SENSITIVITIES VS 10 YEAR MACRO HISTORY MACRO CONDITIONS CCS EBITDA SENSITIVITY TO KEY EXTERNAL DRIVERS – E&P 2020 2021 2022 10Y AVG Sensitivity Est. Clean CCS EBITDA impact % of Group (USD mn) EBITDA 2022 Brent crude +/- 10 USD/bbl (USD/bbl) 42 71 101 71 Brent price ~120 2.6% +/- 10 EUR/MWh 1
Slide 77: Top Management Incentive Schemes
TOP MANAGEMENT INCENTIVE SCHEMES FOR EXECUTIVE MEMBERS, AROUND 2/3 OF TOTAL REMUNERATION IS VARIABLE AND PERFORMANCE DRIVEN SHORT-TERM INCENTIVES Bonus opportunity between 0.70x and 1x of annual base salary, depending on the level Payout linked to yearly performance based on financial, operational a
Slide 78: Gas Midstream: Stable Cash Flow
GAS MIDSTREAM: STABLE CASH FLOW GAS MIDSTREAM EBITDA (HUF BN, USD MN) FACTS & FIGURES Domestic natural gas transmission system 70 223 250 operator 162 194 201 60 189 187 200 Regulated business (asset base and return) 50 with continuous regulatory scrutiny 136 139 40 150 Nearly 6,000km pipeline syste
Slide 79: Disclaimer
DISCLAIMER "This 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, capit