Slide 1: OMV Results January – December and Q4 2012
OMV Aktiengesellschaft OMV Results January – December and Q4 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 February 21, 2013 Move & More.
Slide 2: 2012 Full Year Result
OMV Aktiengesellschaft 2012 Full Year Result Gerhard Roiss, Chairman of the Executive Board and CEO February 21, 2013 Move & More.
Slide 3: Market environment 2012
Market environment 2012 Brent oil price in USD/bbl 12/2012 111 109 01/2012 Oil price: Constant at high level Production: Recovery in North Africa Gas prices: Significant spread spot vs. long-term Refining margins: Volatile with high levels in Q3 3 | OMV Group, Results January – December and Q4 2012
Slide 4: Delivering strong results in 2012
Delivering strong results in 2012 +35% clean CCS EBIT to EUR 3.4 bn +25% sales 1 to EUR 42.6 bn +100% E&P project pipeline 4 major upstream transactions Largest gas discovery in OMV’s history 860 MW gas-fired power capacity on stream 2 marketing country exits 2 1 excluding petroleum excise tax. 2 si
Slide 5: Strong financial performance in 2012
Strong financial performance in 2012 Clean CCS EBIT 1, in EUR mn Exploration and Production 3,407 +31% Production increase to 303 kboe/d (2011: 288): Romania and Austria stable, Libya up 2,530 Gas and Power (23)% Solid result despite negative EconGas contribution caused by oil-linked supply and
Slide 6: Solid financial basis for growth
Solid financial basis for growth 2012, in EUR bn ~4 NWC Group CAPEX 2012: EUR Debt 2.4 bn thereof 66% in E&P reduction EUR 690 mn gross working E&P Dividend capital reduction Gearing ratio down from E&P 34% to 26% G&P G&P R&M R&M Source Use „Source E&P / G&P / R&M“ = Source of funds, including
Slide 7: Focused upstream activities
Focused upstream activities North Sea Black Sea Core & Caspian countries New Zealand & Australia North Africa Middle Exploration only East Exploration and production 7 | OMV Group, Results January – December and Q4 2012
Slide 8: Grow Upstream to 350 kboe/d
Grow Upstream to 350 kboe/d OMV production, in kboe/d ~350 2 ~2/3 of CAPEX in E&P 303 Doubled project pipeline within one year 126 Doubled exploration and appraisal expenditures within three years 61% exploration success rate 2004 1 2012 2016 1 Before Petrom acquisition. 2 Organic, excl. acq
Slide 9: Results Q4/12
OMV Aktiengesellschaft Results Q4/12 David C. Davies, Deputy Chairman of the Executive Board and CFO February 21, 2013 Move & More.
Slide 10: Q4/12 Highlights
Q4/12 Highlights Clean CCS EBIT in EUR mn 1 Production at 301 kboe/d Higher exploration expenses +30% 956 Spread between long-term oil-linked gas supply and hub-priced sales 737 USD 4% stronger vs. EUR 698 Average Brent oil price at USD 110.08/bbl 553 OMV indicator refining margin signif
Slide 11: Economic environment
Economic environment Oil price and EUR/USD Gas prices in EUR/MWh OMV indicator refining margin in USD/bbl 120 110 1.50 35 5.5 109 110 30 5.0 100 30 28 1.44 4.5 4.03 90 25 4.0 80 27 3.5 70 1.38 24 1.35 20 3.0 60 50 15 2.5 1.30 1.32 1.77 40 11 10 2.0 30 10 1.5 20 1.26 1.0 5 10 0.5 0 1.20 0 0.0 Q4/11 Q
Slide 12: Results in Q4/12
Results in Q4/12 Clean CCS net income attributable in EUR mn 1 Q4/12 Q4/11 to stockholders in EUR mn 1 EBIT 791 539 47% Financial result (104) (41) 152% Taxes (284) (132) 115% +19% 393 Effective tax rate 41% 27% 56% 330 Net income 403 365 10% Minorities and hybrid capital (86) (154) (44)% owners
Slide 13: Cash flow
Cash flow 2012 in EUR mn 1 2012 2011 in EUR mn Net income 1,790 1,588 13% (251) 237 Depreciation and 2,036 1,626 25% amortization Other (251) (168) 49% 2,036 (2,279) Sources of funds 3,576 3,046 17% Change in net working 1,790 237 (532) n.m. capital Cash flow from operating 3,813 2,514 52% (626)
Slide 14: CAPEX and EBITD
CAPEX and EBITD 2012 Key investments in 2012 in EUR mn 5,137 Petrom drilling and workovers Acquisitions of Aasta Hansteen and Edvard Grieg in Norway Schiehallion redevelopment in UK 4,059 Power plants Brazi and Samsun 2,426 Etzel (capitalized caverns lease fee) Petrobrazi modernization (
Slide 15: Special items and CCS effect
Special items and CCS effect Q4/12 in EUR mn 1 Q4/12 Q4/11 in EUR mn Clean CCS EBIT 956 737 956 (37) (18) CCS gains/(losses) (37) (32) (45) 85 (128) 791 (22) Clean EBIT 919 705 Personnel related costs (18) (16) Unscheduled depreciation (45) (31) Asset disposals 85 (1) EconGas (128) 0 Other (22) (117
Slide 16: Exploration and Production Clean EBIT
Exploration and Production Clean EBIT in EUR mn Q4/12 vs. Q3/12 Q4/12 vs. Q4/111 698 57 (3) (70) 617 (1) 28 255 (117) 698 553 77 Q3/12 Realization Volume Exploration Other Q4/12 Q4/11 Realization Volume Exploration Other Q4/12 expenses expenses Higher volumes in Tunisia (lifting Positive FX and
Slide 17: Exploration and Production Key Performance Indicators
Exploration and Production Key Performance Indicators Hydrocarbon production (1,000 boe/d) Q4/12 vs. Q3/12 299 305 309 301 Production down by 3% 289 Workovers and planned Oil and 143 157 164 168 159 maintenance in New Zealand NGL Peaceful protests in Libya Sabotaged export pipeline in 146 14
Slide 18: Exploration and Production Petrom group
Exploration and Production Petrom group Hydrocarbon production (1,000 boe/d) Q4/12 vs. Q3/12 186 184 182 182 183 Clean EBIT of EUR 294 mn down by 5%, mainly due to 90 90 89 88 88 Oil and NGL higher exploration costs (3D seismic Neptun) and Gas weaker USD vs. EUR 96 94 93 94 95 Production inc
Slide 19: Gas and Power Clean EBIT
Gas and Power Clean EBIT in EUR mn Q4/12 vs. Q4/11 1 (79) 134 59 (3) 3 5 Q4/11 Supply, Gas logistics Power Other Q4/12 marketing and trading SMT: Negative EconGas contribution; Q4/11 reflected price revision Gas logistics impacted by start-up costs of the gas storage Etzel Power affected by re
Slide 20: Gas and Power Key Performance Indicators
Gas and Power Key Performance Indicators Gas sales volumes in TWh Q4/12 vs. Q4/11 129 119 Gas sales volumes up by 40% 100 92 89 due to trading High spread between contracted oil- linked gas prices and spot prices Petrom sales volumes decreased by 11% Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 EconGas Tradi
Slide 21: Refining and Marketing Clean CCS EBIT
Refining and Marketing Clean CCS EBIT in EUR mn Q4/12 vs. Q4/11 1 (4) (2) 65 145 85 Q4/11 Fuels Petrochemicals Marketing Q4/12 Fuels result was favored by higher refining margins Petrochemicals impacted by lower realized margins Good contribution from Petrol Ofisi offset by volume pressure in
Slide 22: Refining and Marketing Key Performance Indicators
Refining and Marketing Key Performance Indicators Refining output in mn t Q4/12 vs. Q4/11 4.93 4.87 4.91 Slight decrease of refinery output 4.55 4.61 West Utilization increased to 94% East Marketing sales volumes declined 4.03 4.19 3.94 3.73 4.02 Borealis recorded a better performance than i
Slide 23: Key financing indicators
Key financing indicators Gearing ratio in % 1 34 31 28 28 26 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Key financial principles Payout ratio and DPS 1, 2 Long-term gearing ratio target of ≤30% 60 1.20 1.50 1.10 1.00 1.00 Maintain a strong investment grade rating 40 1.00 52 20 32 32 29 0.50 Sustainable div
Slide 24: Performance Program “energize OMV” update
OMV Aktiengesellschaft Performance Program “energize OMV” update David C. Davies, Deputy Chairman of the Executive Board and CFO February 21, 2013 Move & More.
Slide 25: energize OMV – 2% points ROACE increase in 2014 confirmed
energize OMV – 2% points ROACE increase in 2014 confirmed and major initiatives on track ROACE impact Date of Status percentage points finalization end 2012 Stabilize production in Austria and 2014 Romania Up- Accelerate production growth in Tunisia stream 2014 and Pakistan Ongoing development and 2
Slide 26: Expected ROACE impact in 2014
Expected ROACE impact in 2014 Impact of energize OMV on ROACE in 2014 (in % points) Already achieved in 2012: Target 2% First commingling successes ~0.7% to be realized 2013 (additional ~600 boe/d achieved in 2012) in 2014 ~0.5% realized 2012 Reduce working capital (EUR 690 mn working capital re
Slide 27: Upstream – Key Initiatives 2012
Upstream – Key Initiatives 2012 Stabilize production in Romania and Accelerate production growth in Ongoing development and Austria Tunisia and Pakistan operational excellence in rest of world Facilities debottlenecked Accelerate South Tunisia oil Cost optimization started ~900 boe/d freed up
Slide 28: Downstream – Key Initiatives 2012
Downstream – Key Initiatives 2012 Reduce working capital Optimize marketing Improve refining Reduce G&P costs Implementation of Sale of plots and low Integration and Cost reduction in G&P factoring contributed performing stations Flexibility measures Precise initiatives to with EUR ~190 mn
Slide 29: Exploration and Production
OMV Aktiengesellschaft Exploration and Production Jaap Huijskes, Executive Board member responsible for E&P February 21, 2013 Move & More.
Slide 30: 350 kboe/d and more
350 kboe/d and more 350 Stabilized production in mature core 350 kboe/d in 2016 Exploration delivers Securing a sustainable resource base Strong financial performance 30 | OMV Group, Results January – December and Q4 2012
Slide 31: Stabilize production in mature core
Stabilize production in mature core Reduced rate of decline Production in Romania and Austria, kboe/d Highest ultimate oil recovery rates (>60%) CAGR, percent per year State-of-the-art oil recovery technologies -3% Production share IOR/EOR 3 (15% RO, 60% AT) 251 -1-2% Horizontal alternating stea
Slide 32: Grow Upstream to 350 kboe/d and more
Grow Upstream to 350 kboe/d and more Project pipeline doubled OMV production mn boe kboe/d Under appraisal Under development ~350 ~900 303 450 ~430 430 150 125 450 280 September 2011 Q4/2012 2004 1 2012 2016 2021 (Capital markets day) 1 Before Petrom acquisition. 32 | OMV Group, Results January – De
Slide 33: Project pipeline doubled: ~0.9 billion boe
Project pipeline doubled: ~0.9 billion boe New ventures Exploration Appraisal Development Execution Caspian KRI 1 Domino (Black Sea) FRDs (Romania) FRDs (Romania) Middle East Black Sea FRDs (AT+ RO) FRDs (Austria) Mehar (Pakistan) Africa Norway STOD 2 (Tunisia) Rosebank (UK) Latif (Pakistan) New Zea
Slide 34: Major projects under development
Major projects under development New ventures Exploration Appraisal Development Execution Production 2P Peak Project Working Project Country Type Operated start reserves production investments interest primary year mn boe kboe/d EUR mn % FRD Romania Oil/Gas 2013-2015 ~70 ~16 400 100.0 2 OP Mehar Gas
Slide 35: Major projects under appraisal
Major projects under appraisal New ventures Exploration Appraisal Development Execution Production Cumulative Working Project Country Type Operated start production interest primary year mn boe % STOD 1 Oil 2012 2 n/a 50.0 OP Bina Bawi Oil 2013 2 13-20 36.0 OP FRD Austria Oil/Gas 2015 5-9 100.0 OP F
Slide 36: Exploration 2012
Exploration 2012 Exploration Costs / Production 2011, USD/boe Doubled exploration expenditures Hess 9.6 Murphy Oil 8.6 Marathon Oil 7.8 Apache 6.5 Domino discovery in Black Sea; Repsol 6.3 nearby acreage secured Anadarko 6.0 Statoil 5.7 BG Group 5.7 Shell 5.2 OMV 2012 4.5 17,200 km2 3D seismic
Slide 37: Exploration strategy delivering
Exploration strategy delivering Discovered technical resources, mn boe x3 406 61% success rate 2 116 2009 2012 More high impact exploration Unit finding costs 1, USD/boe (higher risk, higher reward) 4.0 -40% 2.4 Higher equity share in projects, e.g., 50% in Domino (Black Sea) 2009 2012 Acreage
Slide 38: Up to 14 high impact wells in 2013/14
Up to 14 high impact wells in 2013/14 New ventures Exploration Appraisal Development Execution 2-year drilling program Spud Working Well Country Basin/Block Type 2 Operated # wells date interest Bønna Barents Sea E Q2/13 20% NO n +35% Wisting Central Barents Sea E Q2/13 25% OP y up to 70 Wisting Mai
Slide 39: 2012: 2P RRR at 158%
2012: 2P RRR at 158% Proved Reserves/Production 2011, years Reserves Replacement Ratio improving ExxonMobil 15 Proved (1P) RRR Proved + Probable (2P) RRR BG Group 14 Percent, 3 year average Percent, 1 year BP 14 Total 13 Eni 12 Occidental 12 +61 ppt. Shell 12 Chevron 12 158% Hess 11 +24 ppt. Apache
Slide 40: Strong financial performance
Strong financial performance Production costs, in USD/boe CAGR 2008-11 OMV Peer median 16 4.4% 14 12 Strong cost management 10 -2.7% 1 8 2008 ’09 ’10 ’11 2012 NOPAT 2 per barrel, in USD/boe CAGR 2005-11 24 OMV more profitable than peers 20 +9.3% 16 12 8 +6.8% 2005 ’07 ’09 ’11 2012 1 2008-2012, O
Slide 41: Renewing the production portfolio
Renewing the production portfolio ~350 303 Production kboe/d 2012 2016 2021 5 Maturity Maturity, 30 35 37 New plays Percent of 35 International portfolio 60 Core production 70 28 Operatorship, 17 20 Operatorship Percent of 50 50 Non-operated 80 Operated production 83 Higher share of gas, production
Slide 42: Outlook
OMV Aktiengesellschaft Outlook Gerhard Roiss, Chairman of the Executive Board and CEO February 21, 2013 Move & More.
Slide 43: Outlook 2013
Outlook 2013 Market environment Brent price: Above USD 100/bbl Gas market: More influenced by hub prices Romania: Gas price liberalization in implementation Refining margins: More modest levels than in 2012 Business outlook CAPEX: Around EUR 2.8 bn before acquisitions; ~70% in E&P Furthe
Slide 44: 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 45: 45 | OMV Group, Results January – December and Q4 2012
45 | OMV Group, Results January – December and Q4 2012