Slide 1: Mariana Gheorghe and Stefan Waldner, Q2/17 results
Mariana Gheorghe Chief Executive Officer and President of the Executive Board Stefan Waldner Chief Financial Officer The spoken word applies. Check against delivery. 1
Slide 2: Slide 1 – Intro
Mariana Gheorghe - OMV Petrom - CEO Slide 1 – Intro Good afternoon, ladies and gentlemen, and a warm welcome from my side. I am very pleased to make the presentation today together with our new CFO, Stefan Waldner, and let me just say that we, at the management team, are very pleased to have him on
Slide 3: Slide 2 – Legal Disclaimer
Slide 2 – Legal Disclaimer Before we start the actual presentation, please let me draw your attention to our Legal Disclaimer, which you can read in detail on slide 2. 3
Slide 4: Key messages Q2/17
Key messages Q2/17 Upstream: production 169 Free cash flow of RON 397 mn kboe/d: OPEX 10.4 USD/boe after RON 841 mn dividend paid Clean CCS Operating Result at RON 892 mn Downstream Oil: refining margins +25% yoy; retail sales volumes +7% yoy Clean CCS EPS up 5 times yoy ~ 43 Downstream Gas: gas sal
Slide 5: Slide 3 – Key messages Q2/17
Slide 3 – Key messages Q2/17 Moving to slide 3, let me start with some key highlights. In Q2/17, we continued to enjoy favorable market fundamentals, which we were able to convert into a strong operational and financial performance. We generated a substantially improved free cash flow after dividend
Slide 6: Economic environment
Economic environment Romania | >» Q1/17 GDP growth’: 5.6% yoy » Demand Q2/17 yoy: > Fuels?: 8% > Gas?:>15% Q2/16 3/16 Q4/16 Q1i7 Q217 > Power!: 7% . oe in USD/bbI (left scale) —*— Avg RONIUSD (right scale) » Progress on gas market liberalization —+— Avg Brent price in USD/bbI (left scale) Gas prices
Slide 7: Slide 4 – Economic environment
Slide 4 – Economic environment On slide 4, we provide some macroeconomic highlights on Romania and an overview of the pricing environment in our industry. Romania showed another solid economic performance. We continued to enjoy another quarter with an impressive year-on-year GDP growth, though incre
Slide 8: Gas and power prices on centralized platforms
on centralized platforms are becoming more relevant: 39 TWh in Q2/17 (with delivery until end-Q3/18) versus only 14 TWh during the entire 2016. Please note that prices on centralized platforms could include storage related tariffs in connection with gas volumes sold/extracted from storage, therefore
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Slide 10: CAPEX and E&A — guidance revised downwards
CAPEX and E&A — guidance revised downwards Group CAPEX incl. capitalized E&A (RON bn) 6mi17 mM Upstream ME Downstream and Co&Other y y _ CAPEX incl. capitalized E&A > 6m/17 at RON 0.9 bn: » 19 development wells and sidetracks drilled » ~500 workovers » FRDs: 5 in development, 7 under appraisal > 201
Slide 11: CAPEX and E&A - guidance revised downwards
Slide 5 - CAPEX and E&A - guidance revised downwards Slide 5 provides an overview of CAPEX and E&A activities. In 6m/17, our total CAPEX was around RON 0.9 billion. The majority was dedicated to Upstream. It included drilling of 19 development wells, around 500 workover jobs and project activities o
Slide 12: Upstream KPIs — improved OPEX/boe
Upstream KPIs — improved OPEX/boe OPEX' (USD/boe) aang 03/16 ante Hydrocarbon production (kboe/d) aD 170 oats air (i OilandNGL Hl Gas y y “Key drivers Q2/17 vs. Q2/16 » Improved OPEX, in USD/boe terms, -13%: » abolition of tax on special constructions >» MTBF 592 days; lower services and personnel c
Slide 13: Slide 6 - Upstream KPIs – improved OPEX/boe
Slide 6 - Upstream KPIs – improved OPEX/boe And now I would like to present you some operational KPIs for each business segment. I will start with Upstream, on slide 6. As a priority, we continue to apply strict cost discipline on our OPEX. In Q2/17, average unit production costs decreased despite l
Slide 14: Downstream Oil KPIs — strong refining margins and sales
Downstream Oil KPIs — strong refining margins and sales y’ OMV Petrom Indicator refining margin Key drivers Q2/17 vs. Q2/16 (USD/bbl) - » Very strong refining margin +25% yoy >» Growthin retailsales of 7% yoy > Refining utilization rate at 94% Q3ité Retail sales volumes (mn t) aT 14 a 7 | OMY Petrom
Slide 15: Slide 7 - Downstream Oil KPIs – strong refining margins and sales
Slide 7 - Downstream Oil KPIs – strong refining margins and sales On slide 7 on the upper chart, we show further increases of OMV Petrom’s refining margin indicator, compared to the already good levels in Q1/17. In terms of year-on-year comparison, the increase amounted to USD 1.7/bbl, or 25% to USD
Slide 16: Downstream Gas KPIs — higher gas volumes
Downstream Gas KPIs — higher gas volumes Gas sales volumes (TWh) Net electrical output (TWh) y’ Key drivers Q2/17 vs. Q2/16 » Higher gas volumes mainly to wholesalers and chemical industry » Significant gas volumes on centralized markets » Lower net electrical output due to Brazi power plant being o
Slide 17: Slide 8 - Downstream Gas KPIs – higher gas volumes
Slide 8 - Downstream Gas KPIs – higher gas volumes Looking at Downstream Gas KPIs on page 8, you can see that our gas sales volumes went up by 10% year-on-year, despite the lower offtake by the Brazi power plant, which was mostly offline. Volumes sold to third parties increased by 17% year-on-year,
Slide 18: OMV Petrom Strategy Update 2021+
OMV Petrom Strategy Update 2021+ Divestment Dorobantu Wind Park Streamline producing assets portfolio Improve profitability Optimize business portfolio Focus on core activities > Mazarine transaction effective as of Aug 1 » Sale contract signed > New rounds of divestments initiated > Completion esti
Slide 19: OMV Petrom Strategy Update 2021+
Slide 9 - OMV Petrom Strategy Update 2021+ Ladies and gentlemen, now I would like to take the opportunity to present you the progress achieved so far in the execution of our Strategy 2021+, which we presented to you in February. As you may remember, at the beginning of the year we announced our comp
Slide 20: Neptun Deep development plan
Last but not least, clearly the most attractive organic growth opportunity we have in our portfolio is Neptun Deep. We are continuing engineering activities together with our partner ExxonMobil. We have concluded the conceptual evaluation work and selected a potential development plan for both Domin
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Slide 22: Strong FCF generation
Strong FCF generation Cash flow Statement RON mn Q217 = Q216 G6mi7 é6mi16 Cash flow from operating activities (CFO) 1,714 883 2976 1,771 Thereof, Depreciation, amortzation ard 0 g47 4601 1.747 impairments including write-ups Change in net working capital (NVC) 275° (120) = 99—(174) Cash flow from in
Slide 23: Slide 11 - Strong FCF generation
Slide 11 - Strong FCF generation Thank you, Mariana. It is a real pleasure to present to this audience for the first time today. Obviously, I cannot really take credit for the excellent numbers I am going to present as I have just started in this role in early July. I am looking forward to meeting y
Slide 24: Q2/17 net income five times higher yoy
Q2/17 net income five times higher yoy Income Statement Q2/17 vs. Q2/16 RON mn Q2n7 Q2i6 6mit7 = 6mi16 > Significantly improved Clean CCS Operating Sales 4808 3,733 9,261 7,382 Result Clean CCS Operating Result 892 231.—-1,659 643 » Upstream result supported by increased crude Thereof Upstream 447 2
Slide 25: Slide 12 - Results summary – Q2/17 net income five times higher yoy
Slide 12 - Results summary – Q2/17 net income five times higher yoy On slide 12, let me present to you a summary of our Income statement. I will focus on Q2/17 vs. Q2/16 developments. Sales increased by 23% year-on-year, supported by higher oil prices and increased gas and fuel sales volumes. Power
Slide 26: Upstream Clean Operating Result supported by higher realization
Upstream Clean Operating Result supported by higher realization Upstream Clean Operating Result (RON mn) Hh i} t » Higher realized prices ~ he » Decreased production costs and depreciation Key drivers Q2/17 vs. Q2/16 1 | J >» Sales volumes -4% Q216 Realization Volume Exploration Other Q27iT expenses
Slide 27: Slide 13 - Upstream Clean Operating Result supported by higher realization
Slide 13 - Upstream Clean Operating Result supported by higher realization Let me move on to page 13, which shows the bridge of the Upstream Clean Operating Result from Q2/16 to Q2/17. With the realized oil price increasing by around 13% year-on-year to USD 41.6/bbl in Q2/17 and a favorable FX devel
Slide 28: Downstream Clean CCS Operating Result more than tripled
28 Downstream Clean CCS Operating Result more than tripled Downstream Clean CCS Operating Result (RON mn) 4 até aaii7 Hl Downstream Oil ll Downstream Gas Key drivers Q2/17 vs. Q2/16 > vy y Improved Downstream Oil result on the back of strong refining margins and retail sales Improved gas business pe
Slide 29: Slide 14 – Q2/17 Downstream Clean CCS Operating Result more than tripled
Slide 14 – Q2/17 Downstream Clean CCS Operating Result more than tripled Slide 14 shows a 219% higher Clean CCS Operating Result of Downstream overall, reflecting the improved contribution of both segments. We had a higher contribution of Downstream Oil in Q2/17 versus Q2/16 mainly as a reflection o
Slide 30: Outlook 2017
Outlook 2017 Brent oil price Refining margin Production FCF after dividends’ Actual 2016 USD 43.7/bbl USD 6.98/bbI 174 kboe/d EUR 0.6 bn RON 1.56 bn portfolio. "No aid in 2016; ? Not ® +5) omveetrom | 2/17 Results 30 OMV Petrom #@ OMV Petrom
Slide 31: Slide 15 – Outlook 2017
Slide 15 – Outlook 2017 Let me finish the presentation with the outlook for the full year 2017, on page 15. Here I want to highlight the main assumptions we consider in respect of market developments, as well as the targets we have set ourselves for 2017 and how they compare to the actual 2016 figur
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Slide 33: BP
BP OMV Petrom #@ OMV Petrom 33
Slide 34: Strong FCF generation
34 Strong FCF generation Cash flow Statement RON mn Q217 Q216 6mi7 é6mi16 Cash flow from operating activities (CFO) 1.714 © 883. 2,976 1,771 Thereof, Depreciation, amortization and oq 917, 4.601 1,747 impairments including write-ups Change in net working capital (NVC) 275° (120) = 99—(174) Cash flow
Slide 35: 6m/17 Net income almost tripled yoy
35 6m/17 Net income almost tripled yoy Income Statement RON mn Q217 216 Gmi17_ 6mi16 Sales 4608 3733 9.261 7,382 Clean CCS Operating Resuit 802 231 1659 643 Thereof Upstream 447210 907,137 Downstream Oil 295 «166675421 Downstream Gas 36 (31) 6 16 Corporate and Other @) 6) «@) = (19) Consolidation 22
Slide 36: Upstream Clean Operating Result (RON mn)
Upstream Clean Operating Result (RON mn) Key drivers 6m/17 vs. 6m/16 2 | a 1 >» Realized oil price +36% ---—W—-- » Decreased production costs and depreciation > Group sales -4% | » Lower gas prices Gm/16 Realization Volume Exploration Other omit? ‘expenses P 20 | OMV Petrom | Q2/17 Results OMV Petro
Slide 37: Downstream Clean CCS Operating Result (RON mn)
Downstream Clean CCS Operating Result (RON mn) 437 omi16 Hl Downstream Oil fll Downsteam Gas Key drivers 6m/17 vs. 6m/16 > Improved Downstream Oil result: favourable market, cost optimisation and low base due to Q2/16 turnaround > Improved gas business performance > RON 73 mn insurance revenues rela