Slide 1: OMV Q2 2017 Results Conference Call
OMV Q2 2017 Results Conference Call Rainer Seele Chairman of the Executive Board and CEO August 10, 2017 OMV Aktiengesellschaft
Slide 2: Disclaimer
Disclaimer This report contains forward-looking statements. Forward-looking statements may be identified by the use of terms such as “outlook,” “expect,” “anticipate,” “target,” “estimate,” “goal,” “plan,” “intend,” “may,” “objective,” “will” and similar terms or by their context. These forward-look
Slide 3: Weak oil prices, increased refining and petrochemicals margins
Weak oil prices, increased refining and petrochemicals margins Oil price Brent OMV indicator refining margin in USD/bbl in USD/bbl 60 8 50 54 49 50 6 40 46 46 6.0 5.6 5.4 30 4 4.7 20 3.7 2 10 0 0 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Gas prices Ethylene/propylene net margin 2 i
Slide 4: Successful transformation efforts led to a strong Clean CCS Operating Result and free cash flow
Successful transformation efforts led to a strong Clean CCS Operating Result and free cash flow in first half of 2017 Clean CCS Operating Result Free cash flow before dividends in EUR mn in EUR mn 2,649 1,737 1,535 1,467 1,719 1,081 593 291 406 790 9 930 397 193 (232) H1 2016 H1 2017 (39) 2015 2016
Slide 5: Key messages
Key messages € STRONG OPERATIONAL PORTFOLIO COST PERFORMANCE CHANGES DISCIPLINE Continued strong production Closed sale of OMV Petrol Ofisi in Upstream production cost with rising Libyan output Turkey remained <USD 9/boe despite maintenance Resilient Downstream results, Signed MoU with ADNOC for sea
Slide 6: Strong Group Clean CCS Operating Result in Q2 2017 despite refinery turnaround
Strong Group Clean CCS Operating Result in Q2 2017 despite refinery turnaround Clean CCS Operating Result Clean CCS net income attributable Clean CCS earnings per Share in EUR mn to stockholders in EUR Downstream Upstream in EUR mn 805 1.54 662 321 259 502 331 0.86 3 0.68 282 494 222 363 411 Q2/16 Q
Slide 7: Group Operating Result negatively impacted by one-off FX effects due to the OMV Petrol Ofisi divestment
Group Operating Result negatively impacted by one-off FX effects due to the OMV Petrol Ofisi divestment Operating Result Net income attributable to Earnings per share in EUR mn stockholders in EUR Downstream Upstream in EUR mn 1,037 2.18 508 712 476 540 169 (600) (168) (0.51) (857) (183) (694) Q2/16
Slide 8: Upstream: Strong earnings increase driven by higher prices and volumes
Upstream: Strong earnings increase driven by higher prices and volumes Clean CCS Operating Result Q2 2017 vs. Q2 2016 in EUR mn Higher oil and gas prices and favorable FX environment +256 +256 Realized oil price increased by 19% 259 Realized gas price rose by 13% 43 Hedging gains of EUR 17 m
Slide 9: Downstream: Resilient earnings due to strong refining and petrochemicals margins
Downstream: Resilient earnings due to strong refining and petrochemicals margins Clean CCS Operating Result Q2 2017 vs. Q2 2016 in EUR mn Oil +48 Significantly increased refining margins (+29%) and ethylene/propylene net margins (+38%); exceptionally strong butadiene margins 103 (82) 411 Higher
Slide 10: Strict cost discipline
Strict cost discipline Upstream production cost 1 CAPEX 2 Cost-savings program 3 in USD/boe in EUR bn in EUR mn +50 +50 (34)% -34% (36)% -36% 13.2 2.8 >250 10.6 200 8.9 8.7 1.9 1.8 1.1 0.7 H1 2015 2016 Q1 2017 Q2 2017 2015 2016 2017 2015 2016 2017 Target 1 Starting with 2016, administrative expenses
Slide 11: Strong operating cash flow generation in H1 2017, fully covering investments and increased dividend payments
Strong operating cash flow generation in H1 2017, fully covering investments and increased dividend payments Sources and uses 1 of cash in H1 2017 in EUR mn Strong cash flow form operating activities of 3,633 EUR 1.9 bn in H1 2017 Free cash Proceeds from divestments of EUR 1.7 bn 1,719 2,067 flo
Slide 12: Significant deleveraging and strong cash position
Significant deleveraging and strong cash position Net debt development Strong liquidity position as of Q2/17 in EUR bn Further reduction of net debt to EUR 0.9 bn 4.0 Cash position at EUR 4.2 bn 3.0 Committed revolving credit facilities of EUR 3.5 bn (undrawn) 1.7 0.9 Target long-term gearin
Slide 13: Updated Outlook 2017
Updated Outlook 2017 2016 Outlook 2017 Brent oil price (USD/bbl) 44 52 (Previous: 55) CEGH gas price (EUR/MWh) 15 >15 Total hydrocarbon production (kboe/d) 311 3301 (Previous: 320) OMV indicator refining margin (USD/bbl) 4.7 >4.7 (Previous: ~4.7) Ethylene/propylene net margin (EUR/to) 375 >375 Utili
Slide 14: OMV Aktiengesellschaft
OV OMV OMV Aktiengesellschaft oOuv Moving more. Moving the future. O M Vv
Slide 15: BACKUP
BACKUP OMV Aktiengesellschaft
Slide 16: Upstream: Earnings decreased sequentially, as a result of lower oil prices
Upstream: Earnings decreased sequentially, as a result of lower oil prices Clean CCS Operating Result Q2 2017 vs. Q1 2017 in EUR mn Lower oil and gas prices and weaker USD (62) Realized oil price decreased by 9% -62 321 Realized gas price declined by 2% Lower hedging gains by EUR 6 mn 107 25
Slide 17: Downstream: Continued strong earnings contribution despite Schwechat refinery turnaround
Downstream: Continued strong earnings contribution despite Schwechat refinery turnaround Clean CCS Operating Result Q2 2017 vs. Q1 2017 in EUR mn Oil (83) Higher refining margins (+11%) and ethylene/propylene net margins (+28%); butadiene margins remained strong 494 60 Negative impact of Schwech
Slide 18: Strong balance sheet
Strong balance sheet Balance Sheet Q2 2017 vs Q1 2017 Highlights Q2 2017 in EUR bn 31.2 31.2 Assets and liabilities held for sale decreased 29.3 29.3 due to the closing of OMV Petrol Ofisi divestment 11.4 Other long-term assets increased mainly due Tangible & intangible Stockholders’ equity 10.8
Slide 19: Operational KPIs
Operational KPIs Hydrocarbon production Refined product sales Retail sales in kboe/d in mn tons in mn tons 335 339 7.65 2.62 2.52 316 6.94 2.34 6.54 Q2 2016 Q1 2017 Q2 2017 Q2 2016 Q1 2017 Q2 2017 Q2 2016 Q1 2017 Q2 2017 Hydrocarbon sales Refinery utilization rate Natural gas sales in mn boe in % 96
Slide 20: Updated sensitivities of OMV Group in 2017
Updated sensitivities of OMV Group in 2017 2017 impact Operating Result 1 Operating cash flow in EUR mn Brent oil price +45 +40 (USD +1/bbl) Gas price (EUR +1/MWh) +20 +15 OMV indicator refining margin +110 +85 (USD +1/bbl) Petrochemicals margin (EUR +10/t) +15 +10 EUR-USD +170 +130 (USD appreciates