Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Investor Day (March 2022)
25 slides from Omv's investor day presentation, Mar 16, 2022
Slide 1: OMV Capital Markets Day 2022
OMV Capital Markets Day 2022 March 16, 2022 OMV Aktiengesellschaft Reinhard Florey Chief Financial Officer The spoken word applies 1/25 | OMV Group
Slide 2: Financial implications of OMV's Strategy 2030
OMV Capital Markets Day, March 16, 2022 Ladies and Gentlemen, good afternoon and a warm welcome also from my side. In the next 30 minutes I will guide you through the financial implications of OMV’s “Strategy 2030”. 2/25 | OMV Group
Slide 3: Where we stand today: quality and resilience of performance
OMV Capital Markets Day, March 16, 2022 Let me start by looking at where we stand today. You still remember our record results of 2021, but I think what is even more relevant than this one record year is the quality and resilience of our performance over the full past five years. We have delivered v
Slide 4: Balance sheet development and change to leverage metric
OMV Capital Markets Day, March 16, 2022 If we have a look at our balance sheet development over the past years, we can demonstrate not only our financial stability but also our great ability to deleverage quickly when our indebtedness reached a level above our threshold. Before I go into detail abou
Slide 5: Investment spending discipline and investment grade ratings
OMV Capital Markets Day, March 16, 2022 about new investment projects and spending plans. Maintaining our investment grade ratings is a key element of this endeavor. 5/25 | OMV Group
Slide 6: Financial targets and capital allocation summary
OMV Capital Markets Day, March 16, 2022 Alfred has already given you the summary of our financial targets, and later I will go a bit more into the details. Again, as a summary, based on our macroeconomic assumptions, we are striving to achieve a Clean CCS Operating Result of over 6 billion Euros and
Slide 7: Cash flow and earnings targets versus three-year average
OMV Capital Markets Day, March 16, 2022 Looking now in more detail into our ambitious cash flow and earnings targets, we can see both steady but also short-term ambitious development. Comparing future targets with recent history is challenging because the last few years have been so exceptional in m
Slide 8: Cross-funding low-carbon activities from fossil business
OMV Capital Markets Day, March 16, 2022 This also means that we want to rely only for initial investment periods on our traditional upstream and downstream fossil fuel business to cross-fund the development of low-carbon activities. We firmly believe that we can create the most value by ensuring tha
Slide 9: Earnings mix by 2030 and EPS target
OMV Capital Markets Day, March 16, 2022 One of the key financial benefits of moving further downstream in the hydrocarbons value chain is in comparison to Upstream lower taxes on earnings. While tax rates in some upstream regimes can be between 70% and 90%, taxation on chemical production and low- c
Slide 10: Bonuses linked to low-emissions transformation
OMV Capital Markets Day, March 16, 2022 manifestation of this. Our bonuses are measured not only by the financial success that we achieve, but also by how much we have been successful in turning OMV into a low- emissions company. 10/25 | OMV Group
Slide 11: Capital allocation priorities
OMV Capital Markets Day, March 16, 2022 xx I now would like to guide you through our updated capital allocation priorities. As in our previous strategy, organic capex remains our number one priority when it comes to cash utilization. Second in line is now the progressive dividend policy in recogniti
Slide 12: Organic capex plan and low-carbon share
OMV Capital Markets Day, March 16, 2022 When talking about our organic capex plan, there is one consideration that stands out among all the others. This is the creation of essential low-carbon activities within OMV. We will not just establish these activities in one particular business or segment. A
Slide 13: Low-carbon capex share by segment
OMV Capital Markets Day, March 16, 2022 hydrogen. In C&M, the share will be 10%, and here we are looking at sustainable polyolefins and circular economy, as described earlier. 13/25 | OMV Group
Slide 14: Return and payback criteria for investments
OMV Capital Markets Day, March 16, 2022 I would like to elaborate on the return and payback criteria that we apply to each investment project. There will be no exceptions to these standards. It is a first for us today that we are disclosing the different return thresholds for the different segments.
Slide 15: M&A ambitions
OMV Capital Markets Day, March 16, 2022 Now to our M&A ambitions. It is a stringent imperative that any acquisition we might consider must bring us closer to our strategic transformation goal, either lowering emissions or expanding our high-value chemicals exposure. It should leverage OMV’s core com
Slide 16: Cash resilience through chemicals
OMV Capital Markets Day, March 16, 2022 Another important aspect is cash resilience. Since the well-known advantage of traditional upstream-downstream integration is eroded by growing emission concerns, we need to find other integrated ways to protect our cashflows from the volatile market environme
Slide 17: Sources and uses of cash until 2030
OMV Capital Markets Day, March 16, 2022 Let me now turn to the sources and uses balance of our new strategy. We want to illustrate here how much headroom we would have available, given our cash flow expectation from now until 2030. This headroom is significant, so we can use it both for increasing t
Slide 18: Borealis synergies example
OMV Capital Markets Day, March 16, 2022 Talking about synergies, I would like to cite as an example our recent acquisition of a majority in Borealis. This was the largest transaction in our corporate history. Already in the first year of full consolidation, the synergies surpass 200 million Euros. W
Slide 19: Core asset criteria and divestments
OMV Capital Markets Day, March 16, 2022 We take a pragmatic approach to defining our core assets: they must create value and make money. If some of them do not meet the defined criteria in one or both dimensions, we will fix or sell them. To give you an idea of what I mean by this, I have listed som
Slide 20: New sustainability-linked funding policy
OMV Capital Markets Day, March 16, 2022 I would now like to talk a little bit about our new funding policy that we are introducing. We would ultimately like to link our funding instruments to the achievement of certain low-carbon targets, whether in relation to our sustainability strategy or our gre
Slide 21: ESG ratings recognition
OMV Capital Markets Day, March 16, 2022 This holistic approach that we pursue at OMV to reduce the impact of our operations on the environment has been recognized by the most important rating agencies. I think we can be proud to count ourselves among the leading oil and gas companies when it comes t
Slide 22: Dividend policy
OMV Capital Markets Day, March 16, 2022 I now come to the last and in many respects most important part of my remarks, namely our dividend policy. What I can report to you here is that we confirm our long-term commitment to our shareholders. Therefore, our dividend policy remains unchanged. OMV cont
Slide 23: Dividend growth since 2015
OMV Capital Markets Day, March 16, 2022 And you can see, this long-term commitment has paid off. A CAGR of 15% since 2015 is definitely something to be proud of. It is the result of a culmination of everything we stand for at OMV: strong cash generation, a solid balance sheet, and sound growth persp
Slide 24: Financial position and key messages
OMV Capital Markets Day, March 16, 2022 And this brings me to the last slide of my presentation today. As discussed, we are well aware that keeping a firm stand and our high ethical standards in the current crisis caused by Russian aggression will put a burden on our balance sheet and a limited numb
Slide 25: Closing remarks
OMV Capital Markets Day, March 16, 2022 more growth options and generate higher but less volatile earnings and cash flows. This is our understanding of creating shareholder value. With that, I would like to thank you for your attention, and I hand the floor back to Florian. 25/25 | OMV Group