72 slides from Mol Hungarian Oil & Gas Plc Class A's investor presentation, August 2022
Slide 1: MOL Group Investor Presentation August 2022
MOL GROUP INVESTOR PRESENTATION August 2022
Slide 2: MOL Group in Brief
MOL GROUP IN BRIEF INTEGRATED CENTRAL EUROPEAN MID-CAP OIL & GAS COMPANY CORE ACTIVITIES UPSTREAM DOWNSTREAM CONSUMER GAS SERVICES MIDSTREAM Exploration Petrochemicals Retail Production Refining Mobility CLEAN CCS EBITDA BY SEGMENTS IN 2021 (USD MN) UPSTREAM DOWNSTREAM CONSUMER GAS 1,554 1,489 605 1
Slide 3: MOL Group Geography
MOL GROUP GEOGRAPHY CEE-BASED INTEGRATED OPERATIONS AND INTERNATIONAL UPSTREAM SLOVAKIA UK RUSSIA NORWAY CZECH REP. KAZAKHSTAN HUNGARY AZERBAIJAN HQ SLOVENIA IRAQ PAKISTAN CROATIA ROMANIA EGYPT SYRIA (IN FORCE MAJEURE) BOSNIA SERBIA MONTENEGRO ANGOLA UPSTREAM DOWNSTREAM CONSUMER SERVICES 3
Slide 4: Agenda
AGENDA THE MOL GROUP EQUITY STORY 5 SUPPORTING SLIDES Q2 2022 RECAP (LINK TO Q2 2022 RESULTS) DOWNSTREAM 12 CONSUMER SERVICES 27 EXPLORATION AND PRODUCTION 41 FINANCIALS, GOVERNANCE AND OTHERS 51 4
Slide 5: The MOL Group Equity Story
v THE MOL GROUP EQUITY STORY = ~ - 4 TOMORROW > MOLGROUP
Slide 6: Deliver Today, Shape Tomorrow
DELIVER TODAY, SHAPE TOMORROW MOL 2030: we delivered on our interim promises MOL 2030+: unchanged direction, accelerated transition, profitably towards net-zero ESG: climate/CO2 in focus, but all stakeholders matter Downstream: increasing EBITDA to cover „fuel to chemicals” transformation E&P: net z
Slide 7: MOL 2030+: Unchanged Direction, Accelerated Transition
MOL 2030+: UNCHANGED DIRECTION, ACCELERATED TRANSITION STRATEGY 2030+ We set the We delivered We need to right strategy on our interim speed up in 2016 promises transition KEY DIRECTIONS UNCHANGED… …WITH ADDITIONAL FOCUS ON Downstream transformation: Fuel-to-chemicals Accelerating the transformation
Slide 8: MOL 2030+: Profitably Towards Net-Zero
MOL 2030+: PROFITABLY TOWARDS NET-ZERO ACCELERATED LOW-CARBON TRANSITION 8
Slide 9: ESG: Climate/CO2 in Focus, but All Stakeholders Matter
ESG: CLIMATE/CO2 IN FOCUS, BUT ALL STAKEHOLDERS MATTER BOTTOM LINE AND SUSTAINABILITY ARE NOT MUTUALLY EXCLUSIVE CLIMATE/CO2 TARGETS OTHER STAKEHOLDER-RELATED TARGETS Reducing group-level Scope 1+2 emissions by 30% by 2030 CLIMATE & New waste management and water reservation ENVIRONMENT* strategy Do
Slide 10: GHG: Downstream and Fuel Sales Biggest Contributors
GHG: DOWNSTREAM AND FUEL SALES BIGGEST CONTRIBUTORS SCOPE 1+2 IS 11% OF MOL’S TOTAL GHG FOOTPRINT TOTAL GHG EMISSIONS SCOPE 1, 2 AND 3 REPORTING AND DISCLOSURE Scope 3 accounts for 88% of MOL Group’s total GHG emission footprint Climate related disclosures produced Downstream accounts for 87% of MOL
Slide 11: ESG: Sector-Leading Ratings and Disclosure
ESG: SECTOR-LEADING RATINGS AND DISCLOSURE TOP POSITIONS ACROSS LEADING ESG RESEARCH, RATING AND INDEX HOUSES INDEXES AND RATINGS DISCLOSURE Leading ESG disclosure through Integrated Reporting using both SASB and GRI for several years 2nd lowest risk among 53 global integrated Oil & Gas peers Climat
Slide 12: Downstream
DOWNSTREAM SHAPE TOMORROW > MOLGROUP
Slide 13: Integrated Downstream Model in CEE
INTEGRATED DOWNSTREAM MODEL IN CEE DOWNSTREAM IN NUMBERS MARKET SHARE (%) 1 GROUP REFINERY YIELD 2021 (%) 11 COUNTRIES <10% 10-20% 20-40% 40+% 7.4% 9.5% 33.7% 5 49.4% SALES OF mtpa 17 Middle distillates Other products Light-products Heavy-products REFINED PRODUCTS REFINERY NELSON COMPLEXITY AND 1.5
Slide 14: Deep Downstream Integration
DEEP DOWNSTREAM INTEGRATION FUEL AND PETROCHEMICAL VALUE CHAIN Internal feedstock2: Capacity ~2.4 Mt in 2021 HDPE 420 kt OLEFINS CRUDE Petchem (ETHYLENE, INTAKE1: ~15% PROPYLENE, LDPE 285 kt C4 STREAM) • Russian: 64% ~45% • Seaborne: own Ethylene PP 535 kt 36% market 3 890 kt Refining ~80% captive ~
Slide 15: 2050 Vision: Highly Efficient, Sustainable, Chemical-Focused
2050 VISION: HIGHLY EFFICIENT, SUSTAINABLE, CHEMICAL-FOCUSED WE HAVE A LONG-TERM VISION TO BECOME A SUSTAINABLE CHEMICALS COMPANY AND POWERING MOBILITY WITH AN AMBITION TO REDUCE CARBON FOOTPRINT AND STRIVING TO REACH NET ZERO EMISSION SUSTAINABLE CHEMICALS WE ARE THE (CENTRAL) EUROPEAN POWERING CHA
Slide 16: Integrating Circular Economy into Our Core Business
INTEGRATING CIRCULAR ECONOMY INTO OUR CORE BUSINESS INTEGRATING BIO- AND WASTE-BASED STREAMS IN PRODUCTION AND SCALING UP RECYCLING IN OUR FEEDSTOCK… … IN OUR OPERATIONS … … IN OUR PRODUCT PORTFOLIO Refinery Industry Sustainable Fuels (e.g biofuels, hydrogen, biogas, electricity) Homes Renewable Ele
Slide 17: 2030 Directions Still Valid, Sustainability and Speed in Focus
2030 DIRECTIONS STILL VALID, SUSTAINABILITY AND SPEED IN FOCUS KEY PILLARS OF THE 2030 STRATEGY REMAIN INTACT 2030 Target Keep market share across the 2020s and harvest existing position EFFICIENCY & USD 1.2+bn Push for efficiency: to be among the most efficient refiners in Europe PROFITABILITY EBIT
Slide 18: Boosting Efficiency to Be Among the Best Refiners in Europe
BOOSTING EFFICIENCY TO BE AMONG THE BEST REFINERS IN EUROPE FOSSIL FUELS WILL REMAIN PROFITABLE IN THE 2020S; MORE EFFICIENCY = ACCELERATED TRANSFORMATION Fossil fuels to be dominant and profitable across the 2020s HARVEST MARKET 1st quartile in Defend market share and profitability on our core mark
Slide 19: Continuing Rijeka Refinery Upgrade During Pandemic
CONTINUING RIJEKA REFINERY UPGRADE DURING PANDEMIC INSTALLATION OF A DELAYED COKER UNIT (DCU) ENABLING FULL CONVERSION AND UTILIZATION Engineering and purchasing completed Focus on manufacturing, deliveries and construction activities STATUS 56% Port and related logistics enabling sale of new produc
Slide 20: Multiple-Waves Plan to Convert 1.8 mtpa Fuels into Chemicals
MULTIPLE -WAVES PLAN TO CONVERT 1.8 MPTA FUELS INTO CHEMICALS USING HIGHLY EFFICIENT TECHNOLOGIES AND TARGETING 2027 AND 2030 START-UPS 2019-20 2022 2025 2027 2030 CAPEX: focus on gasoline conversion USD 1.2-1.4 bn Select site & 1ST STEP Onstream Fuel to Chemicals : technology Shortlisted technologi
Slide 21: Value Chain Extension in Chemicals: Polyol
VALUE CHAIN EXTENSION IN CHEMICALS: POLYOL WITH AN EXPECTED USD ~150 MN MID-CYCLE EBITDA CONTRIBUTION PRODUCTION RAMP-UP OF THE POLYOL COMPLEX PROPYLENE VS. POLYOL SPREADS1 (EUR/T) 200 kt 1.800 Polyol - Propylene Spread Capacity utilization 1.600 1.400 Polypropylene - Propylene spread Polyol 1.200 P
Slide 22: Gradual Polyol Production Ramp-Up
GRADUAL POLYOL PRODUCTION RAMP-UP TECHNICAL AND MARKET CONSTRAINTS DECELERATE POLYOL PROPYLENE GLYCOL Gradual polyol production ramp-up: Continuous production ramp-up 1) Technical constraint: Breeding period Functional fluids Unsaturated (brake fluids, de- Personal care 2) Market constraint: Quality
Slide 23: Beyond-Polyol: Smaller Value Chain Extension Projects by 2030
BEYOND-POLYOL: SMALLER VALUE CHAIN EXTENSION PROJECTS BY 2030 CAPEX DISCIPLINE PROMPTED TO DEPRIORITIZE BIG TICKET DIVERSIFICATION INVESTMENTS FOR NOW 2030 Target Additional USD Polyol: 97% completion as of June 2021, start-up planned for H1 2023, gradual ramp-up LARGE-SCALE ~150 mn INVESTMENTS Othe
Slide 24: Reducing CO2 Footprint by 20% and Integrating Waste
REDUCING CO2 FOOTPRINT BY 20% AND INTEGRATING WASTE FROM ADVANCED BIOFUEL PRODUCTION THROUGH WASTE-TO-CHEMICALS INTEGRATION TO CARBON CAPTURE 2030 Target Reducing CO2 emissions, striving for net zero by 2050 MINIMIZE -20% CCS1 solutions will also contribute to the overall, up to 1.4 mtpa of CO2 FOOT
Slide 25: First Steps Towards a More Sustainable Product Portfolio
MOL HAS TAKEN ITS FIRST STEPS TOWARDS A MORE SUSTAINABLE PRODUCT PORTFOLIO Exploit and utilize Carbon Capture Utilization/CCS: Front-end loading and Integrate into core business project definition is expected to be finalized Exploit and utilize Waste to Chemicals opportunities in Q1 2022 MOL is buil
Slide 26: USD 4.5bn Modular Transformation – Indicative Roadmap
USD 4.5BN MODULAR TRANSFORMATION – INDICATIVE ROADMAP RETAINING A LEADING POSITION AND GENERATE ATTRACTIVE RETURN IN THE 2020S WHILE TRANSFORMING 2023 POLYOL 2026 2027 2030 PROJECT MECHANICAL 2022-2025 FIRST BIO-BASED PROD. 1ST STEP FUEL TRANSF. 2ND STEP FUEL TRANF. COMPLETION RECYCLING SCALE UP (50
Slide 27: Consumer Services
CONSUMER SERVICES SHAPE TOMORROW > MOLGROUP
Slide 28: A Leading Regional Network
A LEADING REGIONAL NETWORK CZECH R. MARKET POSITION: 2 MARKET SHARE: 19% SLOVAKIA MARKET POSITION: 1 TOP 3 MARKET SHARE: 48% IN 90% OF THE NETWORK HUNGARY MARKET POSITION: 1 MARKET SHARE: 44% 9 COUNTRIES SLOVENIA MARKET POSITION: 3 MARKET SHARE: 11% ROMANIA MARKET POSITION: 3 MARKET SHARE: 20% 6 WEL
Slide 29: Become a Digitally-Driven Consumer Goods Retailer and Mobility Provider by 2030
BECOME A DIGITALLY-DRIVEN CONSUMER GOODS RETAILER AND INTEGRATED, COMPLEX MOBILITY SERVICE PROVIDER BY 2030 Regional leader in fuel Continuous improvement Diversification of and convenience retailing of operational efficiency sales channels Organic expansion of the network Strong standardization and
Slide 30: CEE Market Leader in Fuel & Convenience Retailing
CEE MARKET LEADER IN FUEL & CONVENIENCE RETAILING 1 700 mn EBITDA 2 85% more FCF in 5 years 3 60% convenience sales increase Market leader in fuel & 4 30% fuel volume incease convenience retailing 5 0% CO2 emission in operation 6 50% increase in active loyalty customers 30
Slide 31: Consumer Services Will Reach USD 700+ mn EBITDA by 2025
CONSUMER SERVICES WILL REACH USD 700+ MN EBITDA BY 2025 TOTAL GROSS MARGIN TO GROW AGAIN BY AROUND 50% FROM A 2020 BASE FUEL AND NON-FUEL MARGIN CONTRIBUTION (USD MN) 2016 2020 2021 2025 54% EBITDA (USD) 307mn 508mn 605mn ~700+mn 1,468 CAPEX (USD) 220mn 130mn 153mn ~200+mn 35% SFCF (USD) 87mn 378mn
Slide 32: Significant Progress Made in Network Expansion Since 2021
SIGNIFICANT PROGRESS MADE IN NETWORK EXPANSION SINCE 2021 BY ACQUIRING 500+ STATIONS IN THE REGION 2021 Q1 2021 Q2 2022 Q1 MOL acquired 100% shareholding MOL Group acquired 92.25% stake in Marché Restaurants Hungary in OMV Slovenija d.o.o. for 120 SeS Kft. for 9 high quality restaurants in Slovenia
Slide 33: Strengthening CEE Leadership in Fossil Fuel Retailing
STRENGTHENING CEE LEADERSHIP IN FOSSIL FUEL RETAILING THROUGH INCREASING MARKET SHARE AND UPGRADED PORTFOLIO FUEL VOLUMES (BN LITERS) STRENGTHENING LEADING POSITION IN CEE CAGR 6% -1% 7,300 Strengthened regional market-leading position, 5,548 5,709 5,976 5,400 5,870 increasing the market share by 1p
Slide 34: Expanding the Alternative Fuel Portfolio
EXPANDING THE ALTERNATIVE FUEL PORTFOLIO TO COMPENSATE THE SHRINKING OPPORTUNITIES IN FOSSIL FUELS BEYOND 2025 2016-2020 2021-2025 Beyond Foundations Accelerating 2025 in EV- growth and Step charging pilots change Capability and knowledge building Build additional presence in the Significant investm
Slide 35: Further Development in Food and Convenience Offerings
FURTHER DEVELOPMENT IN FOOD AND CONVENIENCE OFFERINGS BY BUILDING ON OUR OWN FMCG CAPABILITIES NON-FUEL SALES (USD MN) FRESH CORNER PENETRATION (%) CAGR 10% ~1 900 70 7% 55 1 374 49 1 170 1 175 46 1 101 957 36 24 2017 2018 2019 2020 2021 ... 2025 2017 2018 2019 2020 2021 ... 2025 NON-FUEL MARGIN (US
Slide 36: Diversification of Sales Channels
DIVERSIFICATION OF SALES CHANNELS THROUGH DIGITAL TRANSFORMATION AND FRANCHISE OPERATION 2016-2020 2021-2025 Beyond Digital and 2025 Synergies & data-driven platform Step operation building change Supporting traditional loyalty Start personalizing retail customers’ Integrate retail and mobility to s
Slide 37: Successful Development and Launch of MOL Move in Hungary
SUCCESSFUL DEVELOPMENT AND LAUNCH OF MOL MOVE IN HUNGARY OUR NEW DIGITAL LOYALTY REWARDS PROGRAMS DRIVE TRANSFORMATION FROM PHYSICAL LOYALTY CARDS TO MOBILE APPS MOL MOVE MOBILE APP DOWNLOADS (MN, GROUP-LEVEL) Our new digital loyalty rewards program developed Our mobile app downloads are on an expon
Slide 38: Mobility Services to Grow Further
MOBILITY SERVICES TO GROW FURTHER AND EXPLOIT SYNERGIES THROUGH DIGITAL PLATFORMS 2016-2020 2021-2025 Beyond Start and 2025 Synergies & capability platform Step building building change Capabilities built in B2C and B2B Mobility as a Service: Offering seamless, digitally customer brands Explore the
Slide 39: Sustainability Goals
SUSTAINABILITY GOALS Carbon neutrality by 2030: renewable energy c to cover the consumption of the service station network, including the EV chargers Carbon offsetting initiatives Conscious waste management Extensive use of recyclable materials (e.g. coffee cups) at Service Stations 39
Slide 40: ~USD 2.3bn Simplified FCF in 2021-25
~USD 2.3BN SIMPLIFIED FCF IN 2021-25 RISING EBITDA TO YIELD HIGHER SIMPLIFIED FREE CASH FLOW IN 2021-2025 2016-2020 STRATEGIC ACTIONS EBITDA AND FCF IN 2021-2025 (MN USD) DRIVERS 3,300 100 100 Increasing gross margin 200 contribution of consumer goods 700 from 27% in 2020 to ~33% by 2025 Expansion o
Slide 41: Exploration and Production
EXPLORATION AND PRODUCTION SHAPE TOMORROW > MOLGROUP
Slide 42: ~320 MMboe 2P Reserves and ~93 mboepd Production
~320 MMBOE 2P RESERVES AND ~93 MBOEPD PRODUCTION NO RUSSIA CEE UK INTERNATIONAL Reserves: 132.2 MMboe KAZAKHSTAN Reserves: 188.0 MMboe Production: 55.6 mboepd Production: 37.6 mboepd AZERBAIJAN HUNGARY IRAQ CIS Reserves: 50.2 MMboe HU PAKISTAN Reserves: 154.2 MMboe EGYPT Production: 31.7 mboepd HR R
Slide 43: ~93 mboepd Delivered in Line with Updated Guidance for 2022
~93 MBOEPD DELIVERED IN LINE WITH UPDATED GUIDANCE FOR 2022 ACG E&P International excl. ACG CEE PRODUCTION1 (MBOEPD) COMMENT 120 111 111 Production in line with guidance of above 90 mboepd for 18 97 ~90-95 93 2022 36 42 17 15 40 23 22 2022 H1: Natural decline in CEE is partially offset by the strong
Slide 44: Production Guidance is ~90-100 mboepd for 2022-2026
PRODUCTION GUIDANCE IS ~90-100 MBOEPD FOR 2022-2026 2022-2026 PRODUCTION GUIDANCE1 (MBOEPD) CEE – WE HAVE TO RUN FAST TO STAND STILL Production Optimization and efficiency measures to 97 93 ~90-100 mitigate baseline decline 17 ~17-20 Surface facility simplification and cross-border projects 15 Offsh
Slide 45: USD ~1.0bn FCF Generated in H1 2022 on Favorable Price
USD ~1.0 BN FCF GENERATED IN H1 2022 ON THE BACK OF FAVORABLE PRICE ENVIRONMENT PRICE REALIZATION, EBITDA, SIMPLIFIED FCF1,2 (USD/BOE) 108 Brent price Realized HC price 71 71 64 Unit EBITDA 54 Unit Simplified FCF 42 57 25 27 14 18 9 2017A 2018A 2019A 2020A 2021A 2022 H1 548 992 747 409 971 967 SFCF
Slide 46: ACG Contribution in 2021 Exceeding Expectations
ACG CONTRIBUTION IN 2021 EXCEEDING EXPECTATIONS 2021 PERFORMANCE 458 mboepd 2021 production (gross) effected mainly by: COVID pandemic Asset turnarounds Strong cash generation preserved and COVID pandemic related operational situation handled well: ACG platform ASSET SUMMARY Coordinated response of
Slide 47: E&P Vision: Net Zero by 2030
E&P VISION: NET ZERO BY 2030, OPPORTUNISTIC APPROACH IN INTERNATIONAL E&P AND MANAGED DECLINE IN CEE CLIMATE STRATEGY CEE INTERNATIONAL (INCLUDING ACG) Net-zero until 2030 (Scope 1 and Scope 2) Transform the largest Pannonian oil Further improve quality and cash- EOR opportunities and CCUS pilot and
Slide 48: CCUS Projects Supporting Our Net Zero Aspiration
CCUS PROJECTS SUPPORTING OUR NET ZERO ASPIRATION CO2 PRICE (EUR/T) WHERE ARE WE? 100 We have technically screened different storage locations in Hungary and Croatia for permanent CO2 storage 80 FEASIBILITY CRITERIA ASSESSMENT STEPS Subsurface storage capacity 60 H1 2022 Integrity of seal 40 Integrit
Slide 49: USD ~2.0bn Capex to Be Spent in 2022-2026
USD ~2.0BN CAPEX TO BE SPENT IN 2022-2026 2022-2026 CAPEX SPENDING* CEE Ramp-up of Croatian offshore campaign USD ~2.0bn Shallow gas exploration in Hungary Sustain & Cross-border projects and Production Optimization Other ~15% 20% Other International ACG ACG 30% ACE is the largest project within the
Slide 50: PSA Regime/Profile
PSA REGIME/PROFILE ACG PSA SCHEME HIGHLIGHTS Investing Government Original PSA signed in 1994 companies Signature Latest amendment in 2017 with the expiry date Bonus of 2049 ACG shareholders have access to own Gross Production entitlement production OPEX Limit of 100% of revenues per quarter Recover
Slide 51: Financials, Governance and Others
FINANCIALS, GOVERNANCE AND OTHERS
Slide 52: H1 2022: Financial Performance Affected by Fuel Price Regulation and Windfall Taxes
H1 2022: FINANCIAL PERFORMANCE AFFECTED BY FUEL PRICE REGULATION AND WINDFALL TAXES 2021 H1 2022 2022 RESULTS5 RESULTS4 GUIDANCE GROUP CLEAN CCS USD 3.53 BN USD 2.18 BN AROUND 3.3BN EBITDA GROUP CAPEX USD 1.54 BN USD 628 MN USD 1.7 – 1.8 BN (ORGANIC) SIMPLIFIED FCF1 USD 1.98 BN USD 1.55 BN AROUND US
Slide 53: Strong Performance Despite Regulatory Headwinds in 2022
STRONG PERFORMANCE DESPITE REGULATORY HEADWINDS IN 2022 MAINLY SUPPORTED BY UPSTREAM AND DOWNSTREAM CONTRIBUTION CLEAN CCS EBITDA (USD BN) 3.5 3.3 2.7 1.6 2.4 2.4 2.2 0.9 1.3 2.0 0.7 1.1 0.7 1.5 1.3 Q2 1.2 1.0 0.9 0.7 1.2 0.4 0.4 0.5 0.5 0.6 0.8 Q1 0.3 0.2 0.2 0.2 0.2 0.2 0.1 -0.2 -0.2 -0.2 -0.1 -0.
Slide 54: Consistent Simplified FCF Generation
CONSISTENT SIMPLIFIED FCF GENERATION FUNDING SUSTAIN AND TRANSFORMATIONAL PROJECTS SIMPLIFIED FCF (USD BN) 2.0 1.2 1.4 1.4 1.6 1.2 0.5 0.3 1.0 0.4 0.6 1.0 Q2 0.8 0.8 0.7 0.7 0.4 0.4 0.0 0.2 0.3 0.4 0.5 Q1 0.2 0.2 0.5 0.2 0.2 0.2 0.1 0.2 0.1 -0.2 -0.2 -0.3 -0.3 -0.5 -0.5 -0.3 2016 2017 2018 2019 2020
Slide 55: Sustain Capex to Be Kept Around USD 1.1bn in 2022-26
„SUSTAIN” CAPEX TO BE KEPT AROUND USD 1.1BN IN 2022-26 SUSTAIN CAPEX (USD BN) COMMENTS 1.3 In 2020 sustain capex declined 1.3 materially in response to the crisis 1.1 (delayed projects, lower 0.4 1.1 0.4 maintenance) followed by a 1.0 1.0 0.9 moderate an uplift in 2021 mainly 0.3 driven by deferrals
Slide 56: USD 3.5bn Strategic Capex Budgeted for 2022-26
USD 3.5BN STRATEGIC CAPEX BUDGETED FOR THE 2022-26 PERIOD TO FUND TRANSFORMATION AND NEW, LOW-CARBON BUSINESSES STRATEGIC, GROWTH, TRANSFORMATIONAL CAPEX IN COMMENTS 2022-26 USD 3.5bn Even with a conservative mid-term macro set, in the 2022-26 period at least USD 3.5bn capex (around USD Investments
Slide 57: Fully Funded Transformation and Base Dividends in 2022-26
FULLY FUNDED TRANSFORMATION AND BASE DIVIDENDS IN 2022-26 EVEN AGAINST A VERY CONSERVATIVE MACRO ENVIRONMENT FINANCIAL FRAMEWORK PROJECTIONS FOR 2022-26 (USD BN)1,2 COMMENTS Even with conservative macro assumptions ~12.5 sufficient cash (~USD 12.5bn) will be generated in the next 5 years to fund ~35
Slide 58: Base Dividend Increased by More Than 40% Since 2016
BASE DIVIDEND INCREASED BY MORE THAN 40% SINCE 2016 COMPLEMENTED BY SIZEABLE SPECIAL PAYOUTS IN 2018, 19, 22 DIVIDEND PER SHARE1 (HUF) 3.0% 3.0% 2.9% Dividend 3.5% 4.6% 11.5% +1.5% +1.5% yield2 Special dividend Regular dividend 202 48 43 78 85 95 95 100 71 0 2016 2017 2018 2019 2020 2021 2022 Cash d
Slide 59: Sources and Applications of Cash
SOURCES AND APPLICATIONS OF CASH SOURCES AND APPLICATIONS OF CASH, 2016-2021 (USD MN)1,2 252 81 78 0 1 199 1 727 115 716 162 1 502 738 402 383 3 530 202 206 350 55 261 427 2 687 37 2 447 322 2 435 2 153 111 2 079 2 048 1 542 1 290 1 412 1 011 1 037 2016 2017 2018 2019 2020 2021 Clean CCS EBITDA Orga
Slide 60: Ample Financial Headroom
AMPLE FINANCIAL HEADROOM FROM DIVERSIFIED FUNDING SOURCES AVERAGE MATURITY OF 3.2 YEARS Reported cash & cash equivalents Medium term loan Undrawn facilities Senior Unsecured Bonds Long term loan 2,500 2,000 1,500 USD mn 23 291 1,000 2,156 519 21 1,019 244 500 779 745 353 938 74 45 40 289 276 0 52 10
Slide 61: Full Investment Grade Rating Preserved
FULL INVESTMENT GRADE RATING PRESERVED ROBUST BALANCE SHEET WITH AMPLE FINANCIAL HEADROOM HISTORICAL FOREIGN LONG TERM RATINGS COMMENTS In June 2022 Fitch revised outlook to negative from stable while reaffirming investment grade rating of BBB- In June 2022 Standard & Poor’s reaffirmed investment gr
Slide 62: INA: Focus on Securing Return on Our Investment
INA: FOCUS ON SECURING RETURN ON OUR INVESTMENT REALITIES AND PRIORITIES STRONG REGIONAL ASSET BASE MOL 2030 strategy can be and will be executed with or Low-cost E&P in Croatia* (both onshore and off-shore) without INA Coastal refinery (Rijeka) Good geographical fit and untapped efficiency upside i
Slide 63: The History of INA & MOL, 2003-2022
THE HISTORY OF INA & MOL, 2003-2022 STORYLINE SHAREHOLDER AGREEMENTS UNDER THE FASHA, MOL DELEGATES FIVE 1ST SHAREHOLDER RIGHTS AGREEMENT (SHA): MOL AND THE GOVT OF CROATIA SIGN THE GAS OUT OF NINE MEMBERS TO THE MOL ALLOWED TO NOMINATE TWO MEMBERS 1ST AMENDMENT MASTER AGREEMENT (GMA) AND AN SUPERVI
Slide 64: MOL-Croatia Arbitrations
MOL-CROATIA ARBITRATIONS UNCITRAL ARBITRATION ICSID ARBITRATION (CROATIA VS. MOL) (MOL VS. CROATIA) INITIATED GOVERNMENT OF CROATIA MOL BY WHEN 17 JANUARY 2014 26 NOVEMBER 2013 PCA (PERMANENT COURT OF ARBITRATION), GENEVA ICSID (INTERNATIONAL SETTLEMENT OF INVESTMENT FORUM UNDER UNCITRAL (UNITED NAT
Slide 65: Shareholder Structure
SHAREHOLDER STRUCTURE1 UniCredit Bank AG Treasury shares ING Bank N.V. 2.4% 4.2% 4.2% OTP Bank Plc. 4.9% Foreign investors (mainly institutional) 31.1% MOL Plc. SESOP Organizations (2) 7.9% Free-float 45.9% Mathias Corvinus Collegium Foundation 10.0% 9.5% 10.0% Domestic institutional Maecenas Univer
Slide 66: Favourable Macro Conditions in Place in Q1 2022
FAVOURABLE MACRO CONDITIONS IN PLACE IN Q1 2022 YET ADVERSE DS PRICE REGULATION IS NOT CAPTURED BY THE HEADLINE MARGIN EXTERNAL ENVIRONMENT* VS MOL CLEAN CCS EBITDA (USD MN) 1600 90% 1400 75% 1200 1000 60% 800 45% 600 30% 400 15% 200 0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 67: Key Items of Taxation
KEY ITEMS OF TAXATION CORPORATE INCOME TAX (CIT) RATES IN CORE OPERATING COUNTRIES HUNGARY Statutory CIT rate is 9% Profit based ’Robin Hood’ with an effective tax rate of 18% Only energy related part of the profit affected statutory tax rate is 31% Only the Hungarian operation of certain companies
Slide 68: MOL Group Refinery and Petchem Margins
MOL GROUP REFINERY AND PETCHEM MARGINS BRENT-BASED MOL GROUP REFINERY MARGIN1 PETROCHEMICALS MARGIN (EUR/t)2 (USD/bbl) 1100 33 1000 28 900 800 23 700 18 600 13 500 8 400 3 300 200 -2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016-2021 range origi
Slide 69: A Conservative Mid-Term Macro Framework
A CONSERVATIVE MID-TERM MACRO FRAMEWORK KEY MACRO ASSUMPTIONS CCS EBITDA SENSITIVITY TO KEY EXTERNAL DRIVERS – E&P 10Y Sensitivity Est. Clean CCS EBITDA impact % of Group 2019 2020 2021 2022-26E AVG (USD mn) EBITDA 2021 Brent crude +/- 10 USD/bbl (USD/bbl) 64 42 71 72 50-70 Brent price* ~135 4.9% +/
Slide 70: Top Management Incentive Schemes
TOP MANAGEMENT INCENTIVE SCHEMES FOR EXECUTIVE MEMBERS, AROUND 2/3 OF TOTAL REMUNERATION IS VARIABLE AND PERFORMANCE DRIVEN SHORT-TERM INCENTIVES Bonus opportunity between 0.70x and 1x of annual base salary, depending on the level Payout linked to yearly performance based on financial, operational a
Slide 71: Gas Midstream: Stable Cash Flow
GAS MIDSTREAM: STABLE CASH FLOW GAS MIDSTREAM EBITDA (HUF BN, USD MN) FACTS & FIGURES Domestic natural gas transmission system 70 223 250 operator 194 201 60 189 187 200 Regulated business (asset base and return) 50 135 with continuous regulatory scrutiny 40 150 Nearly 6,000km pipeline system in Hun
Slide 72: Disclaimer
DISCLAIMER "This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capit