Omv Ag · VIE:OMV

Omv — OMV Aktiengesellschaft — Q4 2020 Earnings Presentation

25 slides from Omv's earnings presentation, Feb 4, 2021

  1. Slide 1: Q4 2020 Results Conference Call

    Q4 2020 Results Conference Call Rainer Seele Chairman of the Executive Board and CEO February 4, 2021 OMV Aktiengesellschaft

  2. 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-loo

  3. Slide 3: Macro environment – improved crude oil and gas prices, but still below prior-year level

    Macro environment – improved crude oil and gas prices, but still below prior-year level Oil prices OMV indicator refining margin Europe USD/bbl USD/bbl 70 63 6 5.0 4.9 60 50 5 61 44 50 43 4 40 47 30 42 3 2.3 30 37 Average Brent price 2 1.7 20 26 0.9 Average realized crude price 1 10 0 0 Q4/19 Q1/20

  4. Slide 4: Key messages

    Key messages FINANCIAL STRONG DELIVERING THE PERFORMANCE OPERATIONS STRATEGY Clean CCS Operating Result Quarterly production of Closed acquisition of additional of EUR 524 mn 472 kboe/d 39% share in Borealis (33)% y-o-y Production cost Signed divestment of OMV retail +65% q-o-q at USD 6.2/boe networ

  5. Slide 5: Clean CCS Operating Result substantially impacted by lower oil prices and reduced demand

    Clean CCS Operating Result substantially impacted by lower oil prices and reduced demand Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR Upstream Corporate & Other EUR mn Downstream 781 0.95 459 524 0.67 184 310 317 219 385 335 369

  6. Slide 6: Upstream – weaker realized oil and gas prices and lower production

    Upstream – weaker realized oil and gas prices and lower production Clean Operating Result Q4/20 vs. Q4/19 EUR mn  Significantly weaker market environment  Average realized oil price decreased by 32% (275) -60%  Average realized gas price declined by 18% 459  Negative FX impact  Production of 47

  7. Slide 7: Downstream – weaker market environment almost offset by Borealis full consolidation and positive hedging impact

    Downstream – weaker market environment almost offset by Borealis full consolidation and positive hedging impact Clean CCS Operating Result Q4/20 vs. Q4/19 EUR mn  Weaker market environment (16)  Refining indicator margin Europe at USD 1.7/bbl (-66%)  Ethylene/propylene net margin at EUR 369/t (+2

  8. Slide 8: Stringent cost discipline

    Stringent cost discipline OPEX savings In EUR mn ~ 650  Operational efficiency in both Upstream and Downstream >460  Process optimization and >430 harmonization >330  Capture economies of scale and strictly manage overhead costs >200  Leverage digitalization and optimize IT processes  Procureme

  9. Slide 9: OMV Group – good organic free cash flow of EUR 1.3 bn in 2020

    OMV Group – good organic free cash flow of EUR 1.3 bn in 2020 Cash flow 12m/20 vs. 12m/19 EUR bn  Decrease of EUR 1.5 bn in cash flow from operating activities excluding net 4.3 working capital effects  Borealis dividend of EUR 108 mn (12/19: EUR 297 mn)  Net working capital effects of EUR 351 mn

  10. Slide 10: Borealis – strong and stable cash flow generation in 2020

    Borealis – strong and stable cash flow generation in 2020 Borealis Operating cash flow 2020 (including dividends from at-equity participations) Uses of cash in 2020 EUR bn 1.5 1.6  Running CAPEX of around EUR 0.5 bn p.a.  Dividends 1.1  M&A  Acquisition of NOVA Chemicals’ 50% ownership interest

  11. Slide 11: Temporary increase in net debt following Borealis acquisition

    Temporary increase in net debt following Borealis acquisition Gearing ratio excluding leases 8.1 Gearing ratio excluding leases considering divestments signed Signed >1.0 divestments Net debt excluding leases in EUR bn End of Dec. 2020 OMV cash position 41% ~35% 3.6 3.4 EUR 2.9 bn 3.2 22% End of Dec

  12. Slide 12: Clear commitment to our progressive dividend policy

    Clear commitment to our progressive dividend policy Dividend Per Share EUR CAGR +13% 1.85 1.75 1.75  Record dividend of EUR 1.85 per 2020 1.50 proposed (+6% vs. 2019) 1.20  We are committed to deliver an attractive 1.00 shareholder return  Progressive dividend policy: OMV aims to increase the div

  13. Slide 13: Disciplined capital spending supports high free cash flows from combined businesses

    Disciplined capital spending supports high free cash flows from combined businesses Organic CAPEX EUR bn Borealis Organic CAPEX before full consolidation OMV Organic CAPEX from Borealis after full consolidation Main projects in 2021 1 OMV Group Organic CAPEX  EUR 2.7 bn 2.5 - 3.0  thereof ~EUR 200

  14. Slide 14: Borealis synergies of at least EUR 800 mn by year-end 2025

    Borealis synergies of at least EUR 800 mn by year-end 2025 ≥800 EUR mn by year-end 2025 Operational cost savings ~200 ~200 ~200 Combined purchasing ~150 Debottlenecking 50-80 Value chain optimization Tax benefits 2021 2022 2023 2024 2025 14 | OMV Group, Q4 2020 Conference Call, February 4, 2021

  15. Slide 15: Update on the EUR 2 bn divestment program

    Update on the EUR 2 bn divestment program Signed divestments Ongoing divestments 51% share in Gas Connect Austria Divestment of the NITRO business1  Closing expected in H1/21  Fertilizer, technical nitrogen and the  Net debt reduction of EUR 570 mn melamine products  Leading European player OMV

  16. Slide 16: Outlook 2021

    Outlook 2021 2020 Outlook 2021 Brent oil price (USD/bbl) 42 50-55 Average realized gas price (EUR/MWh) 8.9 > 10 Total hydrocarbon production (kboe/d) 463 ~ 480 OMV indicator refining margin in Europe (USD/bbl) 2.4 > 2.4 European ethylene indicator margin (EUR/t) 435 435 European propylene indicator

  17. Slide 17: Updated strategic priorities 2025

    Updated strategic priorities 2025 STRATEGIC PRIORITIES FINANCIAL FRAMEWORK ► Transition into an integrated chemical ► Clean CCS operating result of EUR ≥5 bn by company 2025 ► Continue to leverage the proven concept ► Cash flow from operating activities 1 of of integration along the value chain EUR

  18. Slide 18: Updated strategic priorities 2025

    Updated strategic priorities 2025 EXPLORATION & PRODUCTION CHEMICALS & MATERIALS REFINING & MARKETING ► Run portfolio for value, harvesting the cash flow ► Leverage Borealis as platform for chemicals growth ► Maintain production corridor of ~ 450-500 kboe/d, ► Realize integration synergies with Bore

  19. Slide 19: Backup

    BACKUP OMV Aktiengesellschaft

  20. Slide 20: Upstream – improved crude oil and gas prices, supported by production resumption in Libya

    Upstream – improved crude oil and gas prices, supported by production resumption in Libya Clean Operating Result Q4/20 vs. Q3/20 EUR mn  Improved market environment  Realized oil price increased by 11% +208  Realized gas price increased by 27% 184  No realized hedging loss 7  Negative effect du

  21. Slide 21: Downstream – improved results supported by significantly higher contribution from Borealis

    Downstream – improved results supported by significantly higher contribution from Borealis Clean CCS Operating Result Q4/20 vs. Q3/20 EUR mn  Better market environment  Higher refining margin at USD 1.7/bbl (+95%) +35  Slightly lower ethylene/propylene net margin (-2%) 369  Operational performan

  22. Slide 22: Operational KPIs

    Operational KPIs Hydrocarbon production Refined product sales Retail sales kboe/d mn t mn t 505 5.17 1.75 444 472 4.68 1.64 4.37 1.47 Q4/19 Q3/20 Q4/20 Q4/19 Q3/20 Q4/20 Q4/19 Q3/20 Q4/20 Hydrocarbon sales Refinery utilization rate Natural gas sales kboe/d % TWh 477 454 98 50.4 422 90 44.7 81 211 19

  23. Slide 23: Strong balance sheet

    Strong balance sheet Balance sheet December 31, 2020 vs. September 30, 2020 EUR bn 49.3 49.3  Deviations predominantly impacted by the acquisition of additional 39% shares in Borealis Stockholders’ equity resulting in full consolidation, resulting in 41.1 13.7 41.1 and hybrid capital significant in

  24. Slide 24: Sensitivities of the OMV Group results in 2021

    Sensitivities of the OMV Group results in 2021 Annual impact excl. hedging Clean CCS Operating Result Operating cash flow in EUR mn Brent oil price (USD +1/bbl) +60 +25 Realized gas price (EUR +1/MWh) 1 +150 +100 OMV indicator refining margin in Europe (USD +1/bbl) +110 +85 Ethylene/propylene net ma

  25. Slide 25: OMV Aktiengesellschaft

    OV OMV OMV Aktiengesellschaft ouv OMV

OMV Aktiengesellschaft — Q4 2020 Earnings Presentation on 6ix