Slide 1: OMV Results January – June and Q2 2012
OMV Aktiengesellschaft OMV Results January – June and Q2 2012 Gerhard Roiss, Chairman of the Executive Board and CEO David C. Davies, Deputy Chairman of the Executive Board and CFO Jaap Huijskes, Executive Board member responsible for E&P Manfred Leitner, Executive Board member responsible for R&M A
Slide 2: Upstream – 6m/12 Highlights
Upstream – 6m/12 Highlights Growth Black Sea Romania (offshore): Potentially biggest gas discovery Black Sea Bulgaria (offshore): Khan Asparuh Block awarded Gas development in Norwegian Sea acquired UK North Sea divestment in progress and West of Shetlands growth via swap Upstream country
Slide 3: Downstream and OMV Group – 6m/12 Highlights
Downstream and OMV Group – 6m/12 Highlights New concept Nabucco West selected as Central European option for gas delivery from SD II Build up Turkey: Start of direct gas sales G&P Petrobrazi modernization first step finalized Sale of Petrom LPG business signed R&M Further R&M divestments p
Slide 4: Strong financial performance in 6m/12
Strong financial performance in 6m/12 Clean CCS EBIT, EUR mn +38% 1,665 Clean CCS EBIT up 38% to EUR 1,665 mn (2011: EUR 1,206 mn) 1,206 E&P +35% Net income 1 up 15% to 1,510 EUR 986 mn (2011: EUR 861 mn) 1,120 Gearing ratio improved to G&P +19% 31% (vs. 34% in 2011) 118 R&M +239% 99 29 99 (43
Slide 5: Results Q2/12
OMV Aktiengesellschaft Results Q2/12 Move & More.
Slide 6: Q2/12 Financial highlights
Q2/12 Financial highlights Clean CCS EBIT in EUR mn 1 Production at 305 kboe/d 865 Libya production close to pre-crisis levels +82% USD 11% stronger vs. EUR Average oil price at USD 108.29/bbl 474 743 OMV indicator refining margin increased by 176% vs. Q2/11 441 Petrochemicals benefited
Slide 7: Economic environment
Economic environment Oil price and EUR/USD Gas prices in EUR/MWh OMV indicator refining margin in USD/bbl 117 120 1.50 35 4.5 4.15 108 110 30 4.0 1.44 100 30 1.44 25 3.5 90 1.38 25 80 1.28 1.32 26 3.0 70 20 24 1.26 2.5 60 1.20 15 2.0 50 1.51 11 10 40 1.14 1.5 10 30 1.0 1.08 20 5 1.02 0.5 10 0 0.96 0
Slide 8: Results in Q2/12
Results in Q2/12 Clean CCS net income attributable in EUR mn 1 Q2/12 Q2/11 to stockholders in EUR mn 1 EBIT 621 573 8% Financial result (26) (53) (51)% Taxes (236) (138) 71% 455 Effective tax rate 40% 26% 50% +89% Net income 360 383 (6)% Minorities and hybrid capital (76) (109) (30)% owners 240 Ne
Slide 9: Cash flow
Cash flow 6m/12 in EUR mn 1 6m/12 6m/11 in EUR mn Net income 986 861 15% Depreciation and 1,003 814 23% (324) amortization 130 Other (324) (152) 112% 1,003 Sources of funds 1,665 1,522 9% (987) Change in net working 986 130 (246) n.m. capital Cash flow from operating 1,795 1,276 41% activities (61
Slide 10: CAPEX and EBITD
CAPEX and EBITD 6m/12 in EUR mn 2,536 Petrom drilling and workovers Exploration (e.g. Kurdistan Region of Iraq, Tunisia) Power plants Brazi and Samsun 2,063 Gas storage Etzel (capitalized caverns lease fee) 889 Petrobrazi modernization (tie in of revamped units during shutdown) 478 146 187
Slide 11: Special items
Special items Q2/12 in EUR mn 1 Q2/12 Q2/11 in EUR mn Clean CCS EBIT 865 474 865 CCS gains/(losses) (104) 119 (104) Clean EBIT 761 593 (23) Personnel related costs (23) (9) Unscheduled depreciation (101) (21) (101) Asset disposals (0) 6 (0) (15) 621 Other (15) 4 Total special items (139) (20) EBIT 6
Slide 12: Exploration and Production Clean EBIT
Exploration and Production Clean EBIT in EUR mn Q2/12 vs. Q1/12 Q2/12 vs. Q2/11 1 767 743 (61) 73 (30) 101 (79) 743 (5) 233 441 48 Q1/12 Realization Volume Exploration Other Q2/12 Q2/11 Realization Volume Exploration Other Q2/12 expenses expenses Positive FX effect and reduced hedge losses more
Slide 13: Exploration and Production Key Performance Indicators
Exploration and Production Key Performance Indicators Hydrocarbon production (1,000 boe/d) Q2/12 vs. Q1/12 289 299 305 Production up by 2% 275 283 Oil and Higher production mainly in Libya, 143 157 164 134 136 NGL and New Zealand Lower gas production in Romania 141 147 146 142 141 Gas and Aust
Slide 14: Exploration and Production Petrom group
Exploration and Production Petrom group Hydrocarbon production (1,000 boe/d) Q2/12 vs. Q1/12 187 184 186 184 182 Clean EBIT down by 23%, mainly due to 92 90 Oil and 89 90 89 NGL lower oil price and oil sales volumes 95 95 96 94 93 Gas Lower production in Romania due to decline in two key gas
Slide 15: Gas and Power Clean EBIT
Gas and Power Clean EBIT in EUR mn Q2/12 vs. Q2/11 1 26 (7) 3 (2) 19 (1) Q2/11 Margin Volume Costs Other Q2/12 Depressed gas sales margins remain a significant factor in EconGas Volume deviation driven by gas sales in Turkey and wind power generation Higher costs due to development of trading
Slide 16: Gas and Power Key Performance Indicators
Gas and Power Key Performance Indicators Gas sales volumes in TWh Q2/12 vs. Q2/11 119 Gas sales volumes up by 70% due 92 89 to trading EconGas result negatively 53 54 impacted by significant spread between long-term oil-linked supply and hub-priced sales Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Petrom sa
Slide 17: Refining and Marketing Clean CCS EBIT
Refining and Marketing Clean CCS EBIT in EUR mn Q2/12 vs. Q2/11 1 129 22 55 38 14 Q2/11 Refining Fuels Petrochemicals Marketing Q2/12 Higher refining margins due to lower oil price in Refining Fuels Petrochemicals supported by higher volumes and margins Improving contribution from Petrol Ofisi
Slide 18: Refining and Marketing Key Performance Indicators
Refining and Marketing Key Performance Indicators Refining output in mn t Lower Petrom refining output 4.61 4.94 4.93 4.55 4.61 due to Petrobrazi shutdown West East High oil price environment leads 3.67 4.12 4.03 3.73 4.02 to Marketing volume pressure Borealis result slightly below 0.94 0.82 0
Slide 19: Key financing indicators
Key financing indicators Gearing ratio in % 1 34 33 34 31 28 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Key financial principles Payout ratio in % 1 Long-term gearing ratio target of ≤30% 52 Maintain a strong investment grade rating 32 32 24 22 Sustainable dividend policy: Long-term payout ratio target of
Slide 20: Outlook 2012
Outlook 2012 Market environment Average Brent price for 2012 expected to be above USD 100/bbl Significant spread between oil-linked gas prices and hub prices is expected to remain Refining margins expected to weaken; marketing margins and volumes expected to remain challenging Business outlook
Slide 21: Strategy implementation update
OMV Aktiengesellschaft Strategy implementation update Move & More.
Slide 22: Grow upstream, optimize downstream
Our strategy announced in Istanbul in 2011 is simple: Grow upstream, optimize downstream Grow upstream Optimize downstream We aim to be a focused, integrated oil and gas company with improved overall profitability and strong growth in Growing Integrated Restructured upstream upstream gas oil downstr
Slide 23: Upstream – what we have delivered
Upstream – what we have delivered Find new growth areas Black Sea Romania (offshore): potentially biggest gas discovery Black Sea Bulgaria (offshore): Khan Asparuh Block awarded Abu Dhabi upstream country entry +30% exploration expenditures in 2011 (vs. 2010); appraisal pipeline ~450 mn bo
Slide 24: Downstream and OMV Group – what we have delivered
Downstream and OMV Group – what we have delivered Divestment program on track (Arpechim closed, OMV Group: K-Pet sold, Petrom LPG signed, Croatia and Bosnia ► Solid financials in progress, investment bank mandated for Bayernoil sale) (gearing ratio 31%, strong investment Drive performance grade
Slide 25: What we promised – Strategy “Profitable Growth“
What we promised – Strategy “Profitable Growth“ ► Stabilized production in Romania and Austria: 200-210 kboe/d until 2014 ► Production growth until 2016 1: ~2% p.a. organic, up to 4% incl. acquisitions ► Upstream access for Nabucco: Caspian region and Middle East ► ~100% reserve replacement rate 2 b
Slide 26: What we promised – Strategy “Profitable Growth“
What we promised – Strategy ”Profitable Growth“ ► Stabilized production in Romania and Austria: 200-210 kboe/d until 2014 ► Production growth until 2016 1: ~2% p.a. organic, up to 4% incl. acquisitions ► Upstream access for Nabucco: Caspian region and Middle East ► ~100% reserve replacement rate 2 b
Slide 27: Production in Romania and Austria stabilized
Production in Romania and Austria stabilized Production in core countries on track Activities to maintain outlook stable Production performance of OMV’s Performance improvement program in place core countries in line with 2014 De-bottlenecking of facilities: E.g. +1 kboe/d by target of 200-210 k
Slide 28: Organic production growth: Projects in development increased from 280 to 400 mn boe
Organic production growth: Projects in development increased from 280 to 400 mn boe 1 Production growth strategy Successful maturation of developments target secures organic growth kboe/d Strong pipeline of projects, e.g., +2-4% 2 p.a. – Cherouq (Tunisia) ~350 318 – Mehar (Pakistan) – FRDs (Romania)
Slide 29: Production growth including acquisitions: Several transactions in less than one year
Production growth including acquisitions: Several transactions in less than one year Medco acquisition (Tunisia) Abu Dhabi country entry (UAE) Buy-out of a minority OMV and Wintershall signed shareholder Medco (Oct. 2011) upstream agreement with 20% stake in the production ADNOC 2 on June 21 c
Slide 30: Exploration effort increasing
Exploration effort increasing Successful exploration activities Activities in Black Sea secure access to and focus on high impact wells further upstream growth potential Domino discovery (Romania) 50% success-rate 6m/12 (61% in 2011) Preliminary estimate 1.5-3 tcf gas Khan Asparuh block awarded
Slide 31: Portfolio renewal – overall ~0.9 billion boe in project pipeline
Portfolio renewal – overall ~0.9 billion boe in project pipeline Q2/2012 (Q2/2011) New ventures Exploration Appraisal Field development New production Caspian Sea Black Sea Bina Bawi-3, KRI Schiehallion FPSO Cherouq CPF, Tunisia model Caspian KRI 1 STOD 2 (Tunisia) FRDs (Romania) Cherouq (Tunisia) M
Slide 32: What we promised – Strategy “Profitable Growth“
What we promised – Strategy “Profitable Growth“ ► Stabilized production in Romania and Austria: 200-210 kboe/d until 2014 ► Production growth until 2016 1: ~2% p.a. organic, up to 4% incl. acquisitions ► Upstream access for Nabucco: Caspian region and Middle East ► ~100% reserve replacement rate 2 b
Slide 33: Divestments of up to EUR 1 bn on track
Divestments of up to EUR 1 bn on track Refining Capacity reduction and divestment activities Arpechim refinery permanently closed Petrobrazi capacity reduction from 4.5 to 4.2 mn t/y during recent shutdown Divestment of 45% stake in Bayernoil refinery by 2014 Marketing Sale of K-PET filling
Slide 34: Petrobrazi modernization well on track
Petrobrazi modernization well on track Petrobrazi modernization program Refining capacity reduced during shutdown On average 4,250 people on site in May/June 2012 (4.5 to 4.2 mn t) in line with 1.5 mn man-hours worked without the modernization to process 100% of lost time injury domestic crude
Slide 35: Optimizing marketing: Synergies and segmentation
Optimizing marketing: Synergies and segmentation Several synergies with Petrol Ofisi More ambitious target for segmentation successfully under way initiative in Austria Significantly improved performance vs. 2011 Two-brand strategy: Clear premium vs. Integration with OMV product supply done lo
Slide 36: Asset Backed Trading started, first benefits achieved
Asset Backed Trading started, first benefits achieved ABT business model go-live OMV trading area based on existing on Jan 1st 2012 OMV asset base Change from demand-driven to OMV refineries supply-driven optimization Ara 3rd party supply (crude/yield optimization) done – (Rhein) short positions b
Slide 37: Borealis contributes strongly to R&M results
Borealis contributes strongly to R&M results Increasing profit contribution from Successful integration with Borealis Borealis (36% share) to OMV R&M in Schwechat and Burghausen income from Borealis 20% less supply utility costs in EUR mn (36% share) Further potential identified 186 through cl
Slide 38: What we promised – “energize OMV” roll-out started
What we promised – Strategy “Profitable Growth“ ► Stabilized production in Romania and Austria: 200-210 kboe/d until 2014 ► Production growth until 2016 1: ~2% p.a. organic, up to 4% incl. acquisitions ► Upstream access for Nabucco: Caspian region and Middle East ► ~100% reserve replacement rate 2 b
Slide 39: A group-wide performance program – energize OMV
A group-wide performance program – energize OMV Upstream Upstream Stabilize production in Romania and Downstream Austria Group-wide initiatives Accelerate production growth in Tunisia and Pakistan Ongoing development and operational excellence Our promise in rest of world Group-wide initiative
Slide 40: energize at E&P has kicked off ~100 initiatives
energize at E&P has kicked off ~100 initiatives Production target of 350 kboe/d in 2016 confirmed Despite ongoing challenges, such as missing production in Yemen ~70% of portfolio in core countries, with high natural decline to offset While generating and progressing opportunities for growth
Slide 41: E&P – key initiatives
E&P – key initiatives Ongoing development and Stabilize production in Romania and Accelerate production growth in operational excellence in rest of Austria Tunisia and Pakistan world Debottleneck facilities Accelerate South Tunisia oil Optimize costs (e.g. freeing up ~1 kboe/d by development (
Slide 42: Downstream – key initiatives
Downstream – key initiatives Reduce working capital Optimize marketing Improve refining Reduce G&P costs EUR ~500 mn by end of Marketing excellence Refining excellence Cost reduction in G&P 2012, thereof (EUR ~50 mn) (EUR ~40 mn) (EUR ~10 mn) EUR ~150 mn already Pricing excellence Increa
Slide 43: energize OMV – 2% points ROACE increase in 2014
energize OMV – 2% points ROACE increase in 2014 ROACE impact Date of percentage points finalization Stabilize production in Romania and Austria 2014 Up- Accelerate production growth in Tunisia stream 2014 and Pakistan Ongoing development and 2014 operational excellence in rest of world Reduce workin
Slide 44: energize OMV – implementation started
energize OMV – implementation started ROACE percentage points Regular updates every half year on the progress of energize towards +2% points ROACE Transparent results in context of overall performance Feb 2013: update of energize contribution in 2012 2012 2013 2014 44 | OMV Group, Results Janu
Slide 45: Well on track to implement “Profitable growth”
Well on track to implement “Profitable growth” 2014 ► Romania and Austria production continuously above 200 kboe/d ► Divestment program on track Raise performance ► Performance program: +2% points ROACE identified short-term ► Solid financial structure ► Growth 2016 ► UK North Sea divestment in prog
Slide 46: Disclaimer
Disclaimer This document does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of any contract, investment decisions or commitment whatsoever.
Slide 47: 47 | OMV Group, Results January – June and Q2 2012
47 | OMV Group, Results January – June and Q2 2012
Slide 48: Backup
OMV Aktiengesellschaft Backup Move & More.
Slide 49: OMV steps into deep water gas development in Northern Norwegian Sea
OMV steps into deep water gas development in Northern Norwegian Sea Aasta Hansteen acquisition in Norway Acquisition 1 of 15% stake in the Aasta Hansteen 2 gas field development from ExxonMobil Contains three significant gas discoveries in the Vøring Basin, in the Northern Norwegian Sea Increa
Slide 50: OMV signs Upstream Agreement with OPEC Member UAE’s biggest Emirate Abu Dhabi
OMV signs Upstream Agreement with OPEC Member UAE’s biggest Emirate Abu Dhabi Abu Dhabi E&P Country Entry - Key Facts OMV and Wintershall signed upstream agreement with ADNOC 1 on June 21 Shuwaihat sour gas and condensate field in the Western Region of Abu Dhabi is planned to be appraised Shuw
Slide 51: E&P: Exploration activities – Update
E&P: Exploration activities – Update Norway: • Zidane-2 (OMV 20%, RWE (Operator)) Romania: exploration well encountered • Neptun deep block: promising results on Domino- hydrocarbons better than included in the 1, first deep water exploration well offshore Kurdistan Region of Iraq: acquisition case
Slide 52: E&P: Project activities – Update
E&P: Project activities – Update UK, West of Shetland (WoS): • Schiehallion (OMV 5.88%, BP (Operator)) Romania: redevelopment: 5-year rig commitment and • Totea deep development: Discovered in July major subsea contract award made, first oil 2011, tied-in in October, first appraisal well planned for