Omv Ag · VIE:OMV
Omv — Investor Day (March 2022)
41 slides from Omv's investor day presentation, Mar 16, 2022
Slide 1: From Value Chain to Value Circle
STRATEGY 2030 FROM VALUE CHAIN TO VALUE CIRCLE Alfred Stern Chief Executive Officer and Chairman of the Executive Board March 16, 2022 1 | OMV Capital Markets Day, March 16, 2022 © OMV Group
Slide 2: Disclaimer
Capital Markets Day 2022 Disclaimer This presentation contains forward-looking statements. forward-looking statements may be identified by the use of terms such as “outlook”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “target”, “objective”, “estimate”, “goal”, “may”, “will” and similar ter
Slide 3: Strategic context
OMV Strategy 2030 Strategic context ● Net-zero emissions needed by 2050 at the latest to limit global warming to 1.5 degrees Celsius ● Demand for oil and gas will fall over the next three decades, with a reduction in oil demand beginning earlier and declining faster ● Natural gas will act as transit
Slide 4: Fundamental shift from a linear to a circular society
The Core of our Strategy Fundamental shift from a linear to a circular society Circular economy Linear economy Raw material Produce Consume Dispose A sustainable circular society Raw material 4 | OMV Capital Markets Day, March 16, 2022 © OMV Group
Slide 5: OMV Strategy 2030
OMV Strategy 2030 Become a leading sustainable fuels, chemicals and materials company – with a strong focus on shareholder value Net zero by 2050 in Scope 1, 2 and 3 Strengthen, Establish a global expand and Become a Reduce fossil leading European leadership position diversify in circular production
Slide 6: Sustainability is at the core of our strategy
2030 Sustainability Framework Sustainability is at the core of our strategy People Health, Safety, Security FOCUS FOCUS Natural Resources AREAS AREAS Management Climate Change Ethical Business Practices 6 | OMV Capital Markets Day, March 16, 2022 © OMV Group
Slide 7: OMV's path to net zero in operations by 2050
Scope 1 & 2 Emissions OMV’s path to net zero in operations by 2050 Absolute net GHG Scope 1 & 2 emissions mt CO2e -30% -60% Portfolio changes Improve operational Increase efficiency renewable Decrease of energy refining fossil Neutralization purchases throughput measures e.g. CCS and offsetting 7 |
Slide 8: OMV's path to net zero in Scope 3 by 2050
Scope 3 Emissions OMV’s path to net zero in Scope 3 by 2050 Absolute net GHG Scope 3 emissions mt CO2e -20% -50% Portfolio changes Decrease of fossil fuels Increase in recycled & Neutralization sales measures e.g. sustainable feedstock CCS and offsetting 8 | OMV Capital Markets Day, March 16, 2022 ©
Slide 9: Carbon intensity of energy supply
Scope 1, 2 and 3 Carbon intensity of energy supply Carbon intensity of energy supply Scope 1, 2, 3 gCO2e/MJ -20% -50% Portfolio Decrease GHG changes Scope 1 & 2 Decrease Increase in emissions of fossil zero carbon Neutralization fuels sales energy sales measures e.g. CCS and offsetting 9 | OMV Capit
Slide 10: Methane emission reduction targets
2030 Sustainability Framework Methane emission reduction targets E&P Methane Intensity Target Key initiatives % ● Phase out existing projects with routine flaring and 1.1 venting, and no new ones ● Clear commitment to World Bank’s “Zero routine flaring by 2030” initiative ● Minimize non-routine flar
Slide 11: Leveraging our strengths to execute the strategy
OMV Strategy 2030 Leveraging our strengths to execute the strategy EUR Organic free 2.6 bn cash flow before dividends (average 2019-2021) 21% Leverage ratio Take out the energy circle at the end of 2021 Global footprint Strong innovation Healthy financial Experienced capabilities position employees
Slide 12: Clear financial targets and growing shareholder returns
OMV Strategy 2030 Clear financial targets and growing shareholder returns ≥EUR 6 bn ≥EUR 7 bn Capital allocation ~ EUR 3.5 bn p.a. priorities: organic investments, 2030 clean CCS 2030 Operating 1. Organic CAPEX Operating Result Cash flow1 2. Progressive dividend thereof ~40% in 3. Inorganic growth l
Slide 13: Chemicals & Materials
OMV Strategy 2030 Chemicals & Materials © Borealis 13 | OMV Capital Markets Day, March 16, 2022 © OMV Group
Slide 14: C&M as growth engine of the Group
Chemicals & Materials C&M as growth engine of the Group, balancing sustainability and returns ● Develop into a global leader in specialty polyolefin solutions ● Grow in attractive markets with a particular focus on North America and Asia ● Grow sustainable polyolefin production to up to ~40% of tota
Slide 15: Polyolefins: significant global demand growth to 2030
Polyolefins Key driver of sustainable future with significant global demand growth to 2030 Polyolefin demand (virgin and recycled) mn t CAGR 2021-2030 ● Growing above global GDP 311 +4.3 ● Main growth engine is Asia – ~75% of estimated global growth Europe ● Main drivers Americas ● Urbanization, inc
Slide 16: Feedstock to produce polyolefins will shift to lower emissions
Recycled Polyolefins Feedstock to produce polyolefins will shift to lower emissions Recycled polyolefin demand mn t CAGR 2021-2030 36 +11.7 Europe ● Growing three times faster than global GDP ● Recycled plastics can reduce up to 50% CO2 emissions Americas ● Recycled plastics have become more commerc
Slide 17: Building on our already strong position today
Chemicals & Materials Presence Building on our already strong position today Stenungsund Porvoo Geleen Antwerp Niedergebra Fürstenwalde Kallo Burghausen Rockport Schwechat Beringen Cheonan Taylorsville Pasadena Port Arthur Shanghai Monza Wildon (Borouge JV 50%) (Baystar JV 50%) (Baystar JV 50%) Petr
Slide 18: Competitive advantage in polyolefins
Borstar® Proprietary Polymer Technology Competitive advantage in polyolefins Main advantages of Borstar® technology ● Innovation potential; innovative, tailor-made products and solutions through flexible design ● Superior sustainability profile: Allows use of >50% of post- consumer recycled material
Slide 19: Borealis – a global leading supplier to the energy industry
Specialty Polyolefins Borealis – a global leading supplier to the energy industry German energy corridors ● The largest transmission cable project ever aimed to deliver the energy transition in Germany ● Requires massive upgrades to power grid to guarantee secure, affordable electricity supply from
Slide 20: Delivering innovative and sustainable mobility solutions
Specialty Polyolefins Delivering innovative and sustainable mobility solutions Borealis proprietary solutions Application area Exterior ● Polypropylene compound is the fastest- growing polymer material in the automotive industry due to lighter and more energy efficient properties Strong OEM ● Boreal
Slide 21: Strong pipeline of organic growth projects
C&M Strategy 2030 Strong pipeline of organic growth projects Production volumes1 Europe and growth projects 4.8 ~4.7 mn t Europe ● Propylene plant (PDH) in Kallo (2023) ● Burghausen naphtha-based cracker expansion (2022) ● Current polyolefin plants debottlenecking (2022-2024) Middle East & Asia ● Re
Slide 22: Borouge JV: highly attractive polyolefins platform
Borouge JV Highly attractive polyolefins platform globally Superior products, 1st quartile cost curve USD 2.1 bn Strong growth © Borouge powered by Borstar®, position driven by EBITDA plans Borouge 4 yielding premium advantaged feedstock Avg 2019-2021 by 2025 prices and large-scale operations 22 | O
Slide 23: Further growth based on strict investment criteria
C&M Strategy 2030 Further growth based on strict investment criteria North America ● Investment criteria ● Advanced market, where Asia innovation is key ● Financial attractiveness ● Growth in specialty ● Strategic fit in portfolio ● Advantaged feedstock polyolefins opportunities and sustainability ●
Slide 24: Up to 40% of polyolefin volumes in Europe from sustainable feedstock
Sustainable Polyolefins Up to 40% of polyolefin volumes in Europe will be based on sustainable feedstock Borealis sustainable polyolefins production capacity mn t ~2.0 ● Capture market potential by leveraging OMV’s integrated technology platform and end-to-end position to establish products and new
Slide 25: OMV engages in the entire circular economy value chain
Circular Economy OMV engages in the entire circular economy value chain Market access 5 1 Proprietary technology ● Partnerships with brand owners ● Chemical recycling: ReOil® and retailers,e.g. ● Mechanical recycling Circular ● Unique full-range customer offer consisting of fossil, bio-based and Eco
Slide 26: Refining & Marketing
OMV Strategy 2030 Refining & Marketing 26 | OMV Capital Markets Day, March 16, 2022 © OMV Group
Slide 27: Putting Refining and Marketing on a sustainable footing
Refining & Marketing Putting Refining and Marketing on a sustainable footing for the energy transition Refining ● Become a leading, innovative producer of sustainable mobility fuels and chemical feedstock in Europe ● Shift to more sustainable product slate and reduce fossil throughput in European re
Slide 28: Increase sustainable fuels and reduce fossil throughput
Refining 2030 Increase sustainable fuels and reduce fossil throughput Refining yield Schwechat and Burghausen % Increase production of Maximize oil-to-chemicals 17 Chemical 24 feedstock sustainable fuels and integration in Western 14 13 Gasoline chemical feedstock to refineries 41 30 Diesel 12 16 Je
Slide 29: Clear investment plan to deliver sustainable fuels
Refining 2030 Clear investment plan to deliver sustainable fuels Sustainable fuels and feedstock mn t ~1.5 Road ● Co-processing of first generation (e.g., vegetable oil) and 0.4 Road fuels biofuels advanced biofuels (e.g., waste, waste fat) ● Biogasoline (ethanol) ● Synthetic fuels from CO2 (e-fuels
Slide 30: R&D efforts in refining focus on new feedstock technologies
Refining 2030 R&D efforts in refining are focusing on new technologies for feedstocks Chemical Synthetic fuels and Biofuels feedstocks chemical feedstocks Green hydrogen ● Co-processing ● Ethanol-to-ethylene ● MegaSyn pilot ● UpHy Schwechat Schwechat Burghausen Schwechat ● Advanced ethanol ● Bio hyd
Slide 31: Reposition to adapt to new market trends
Retail 2030 Reposition to adapt to new market trends Become first choice of our customers for energy, mobility and convenience Focus on premium and sustainable products Profitability per station Non-fuel business margin EUR thousand EUR mn ~+30% ~+30% 210 ~270 2021 2025 2030 2021 2025 2030 31 | OMV
Slide 32: Building on capabilities to tap into EV charging growth
Retail 2030 Building on capabilities to tap into EV charging growth EV charging points >2,000 ~500 21 2021 2025 2030 ● Leverage OMV strong retail position in CEE ● ~17,000 office wallbox charging points by 2030 ● >2,000 charging points by 2030 in highway ● International e-Mobility card offer for EV
Slide 33: Sustainable Aviation Fuel: ambition to become regional leader
Sustainable Aviation Fuel 2030 Ambition to become regional leader Recognized potential, CO2 emissions Ambition of Our biggest customers secured early mover reduced >700,000 t now LUFTHANSA and position on the market by 80% by 2030 AUSTRIAN AIRLINES 33 | OMV Capital Markets Day, March 16, 2022 © OMV
Slide 34: Exploration & Production
OMV Strategy 2030 Exploration & Production 34 | OMV Capital Markets Day, March 16, 2022 © OMV Group
Slide 35: Robust cash generator to support Group's transformation
Exploration & Production 2030 Robust cash generator to support Group’s transformation ● Fossil production will be reduced gradually until 2030, with a stronger decline in the following decades ● Growth projects in natural gas, as an energy transition fuel ● The gas sales and logistics business1 will
Slide 36: Production will gradually decline; gas share will increase
Exploration & Production 2030 Production will gradually decline; gas share will increase Production2 kboe/d ● Gradual decline in production by 20303 ● Decrease in oil by ~30% ● Decrease in natural gas by ~15% ~490 ● Maintain production cost <USD 7/bbl Middle East ~450 18% ● Focus on natural gas & Af
Slide 37: Neptun Deep, Romania: a strategic gas project
Neptun Deep, Romania A strategic gas project for OMV Group FID1 2023 Estimated recoverable Production at Development First Gas1 2027 resources ~50 bcm plateau ~70 kboe/d CAPEX <2 EUR bn 37 | OMV Capital Markets Day, March 16, 2022 1 Subject to offshore law being amended in Romania; all data are net
Slide 38: Diversify to build successful low carbon business
Exploration & Production 2030 Diversify to build successful low carbon business Carbon Capture and Storage Initiatives Geothermal (CCS) Build geothermal Develop CCS business to offset business for absolute emissions for OMV and for e.g., for district heating captive use Investments of ~EUR 5 bn 2030
Slide 39: An integrated sustainable fuels, chemicals and materials company
OMV 2030 An integrated sustainable fuels, chemicals and materials company GROUP ● Become a global leader in specialty polyolefin solutions, with a significantly strengthened position in Asia and North America ● Scale up the circular business and diversify into new high- Chemicals & Materials value c
Slide 40: Significant transformation driving profitability and shareholder returns
OMV 2030 Significant transformation driving profitability and shareholder returns Clean CCS Operating Result EUR bn ≥6.0 Chemicals & ~50% Materials 3.8 29% Refining & ~20% Marketing 28% Exploration & ~30% Production 44% Corporate & Average 2019-2021 2030 Other 40 | OMV Capital Markets Day, March 16,
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