Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Non-Deal Roadshow (November 2019)
103 slides from Omv's roadshow presentation, November 2019
Slide 1: OMV Capital Market Story
OMV CAPITAL MARKET STORY November 2019 OMV Aktiengesellschaft
Slide 2: Disclaimer
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 terms, or by their context.
Slide 3: OMV – The energy for a better life
OMV – The energy for a better life Ready for a changing and volatile world ► HSSE – Top priority Safety first ► Aim for ZERO harm – NO losses Financial ► Integrated portfolio across the value chain stability ► Balanced regional footprint ► Become a digital leader Innovation & ► Provide solutions for
Slide 4: One integrated company – Two strong pillars
One integrated company – Two strong pillars UPSTREAM Balanced core regions DOWNSTREAM OIL Top European refiner Central Eastern Europe 17.8 mn t refining and Middle East and Africa 2.5 mn t petrochemical capacity in Europe North Sea 15% share in Adnoc Russia Refining and Trading JV
Slide 5: OMV's value proposition – Well positioned for rewarding shareholders
OMV’s value proposition – Well positioned for rewarding shareholders ROACE Integrated and balanced 2018, Clean CCS figure Integrated and balanced portfolio of Upstream and 2015 Downstream assets provide resilient cash generation 13% 8% Upgraded portfolio Portfolio restructured, costs down, Organic F
Slide 6: OMV Strategy – In a nutshell
OMV Strategy – In a nutshell Profitable growth Expand integrated portfolio ► Clean CCS Operating Result ► Leverage on proven concept of ► ≥ EUR 4 bn in 2020 and integration ► ≥ EUR 5 bn in 2025 ► Significantly internationalize ► ROACE target ≥ 12% mid- and Upstream and Downstream long-term ► Build s
Slide 7: Delivering on targets – Record clean CCS Operating Result in 2018
Delivering on targets – Record clean CCS Operating Result in 2018 Clean CCS Operating Result Clean CCS ROACE EUR bn % 3.6 14 13 Target 3.0 ≥ 12% 2.0 1.2 8 1.7 7 1.5 0.1 0.0 1.5 1.5 1.8 1.6 2015 2016 2017 2018 2015 2016 2017 2018 Upstream Downstream Others 7 | Capital Market Story, November 2019
Slide 8: A new level of sustainable cash generation
A new level of sustainable cash generation and potential for increase above EUR 5 bn mid-term Cash generation 1 and oil price development Sources of funds, EUR bn Growth Turnaround ≥5.0 4.3 3.9 3.3 3.2 3.0 Downstream 99 72 Oil price 2 54 Upstream 52 44 Corporate 3 2014 2015 2016 2017 2018 Mid-term 3
Slide 9: Strong performance in the first nine months of 2019
Strong performance in the first nine months of 2019 Clean CCS net income attributable Cash flow from operating activities Clean CCS Operating Result EUR mn to stockholders excl. working capital change EUR mn EUR mn Upstream Corporate & Others, Consolidation Downstream +3% 3,302 3,196 1 +6% 2,755 2,5
Slide 10: Active portfolio management towards higher returns
Active portfolio management towards higher returns Major divestments Major acquisitions Divested high cost and capex Established Russia as an Upstream core intensive OMV UK region Sold minority stake in regulated Established an integrated value chain in Gas Connect Austria Abu Dhabi Decreased exposu
Slide 11: Stringent cost discipline
Stringent cost discipline Cost savings Production costs EUR mn >430 2018, USD/boe 2015 USD/boe 330 7.0 13.2 Organic CAPEX 200 2018, EUR bn 2015 EUR bn 1.9 2.7 E&A 2016 2017 2018 expenditure 2018, EUR mn 2015 Efficiency program 2015-2017 1 Efficiency program 2018-2020 2 2018, EUR mn 1 versus 2015 on
Slide 12: Clear commitment to digitalization
Clear commitment to digitalization – Initiatives across the entire group driving efficiency and growth Selected digitalization infinitives Size of Investment (€) Real-time Growth Digital Rig Digital Oilfield of the Future > 100 Mio Integrated digital reservoir > 15 Mio – 100 Mio and surface models >
Slide 13: Upstream – Improved portfolio, lower cost
Upstream – Improved portfolio, lower cost Production volume Production cost Kboe/d USD/boe +59% +59% -49% (49)% 481 13.2 427 Asia-Pacific MEA 10.6 348 311 8.8 303 North Sea 7.0 6.7 Russia CEE 2015 2016 2017 2018 9m/19 2015 2016 2017 2018 9m/19 13 | Capital Market Story, November 2019
Slide 14: Successful strategy execution in Upstream
Successful strategy execution in Upstream Developed Asia-Pacific Expanded footprint in New Zealand by increasing stake in existing into core region producing assets Partnered with Sapura’s upstream business in Malaysia – Platform for further regional growth, capitalizing on growing Asian markets
Slide 15: Strong project pipeline for further production growth
Strong project pipeline for further production growth SapuraOMV Upstream Production growth Achimov 4A/5A Kboe/d SARB and Umm Lulu Upside: Neptun Aasta Hansteen SapuraOMV Upstream ~600 SARB and Umm Lulu Nawara SapuraOMV Upstream <500 1 >500 427 348 2017 2018 2019 2020 2025 1 Product
Slide 16: Downstream – Consistent strong cash generator
Downstream – Consistent strong cash generator Clean CCS Operating Result Downstream Free Cash Flow EUR bn EUR bn 1.8 1.7 0.2 1.6 1.5 1.5 1.3 0.1 0.1 0.2 Downstream Gas 0.2 1.3 0.6 0.1 0.1 0.6 0.6 0.6 Petrochemicals 0.6 0.8 0.1 1.4 Organic free cash flow 1.2 1.1 0.9 0.8 0.8 Fuels 0.8 0.6 (0.02) (0.2)
Slide 17: Downstream – Upgrading European refining assets
Downstream – Upgrading European refining assets European market OMV European production 2016 - 2025 volume 2025 Change 2025 volumes Up to ~EUR 1 bn planned investments for upgrades in 2018 - 2025 +12% 2.8 mn t Increase production of petrochemicals Petrochemicals Maximize jet fuel production an
Slide 18: Excellently positioned for IMO 2020
Excellently positioned for IMO 2020 to capture upside No investment required Positioned to capture significant upside Middle Heavy fuel No refinery Balanced distillate yield oil yield turnaround sour/sweet in 2019 and 2020 crude slate 50% 2% Diesel crack spread HFO crack spread Able to produce new A
Slide 19: OMV and ADNOC form a strategic downstream partnership
OMV and ADNOC form a strategic downstream partnership – Decisive step to deliver OMV Strategy 2025 ► OMV acquired a 15% interest in ADNOC Refining and in a to-be-established Trading Joint Venture (ADNOC 65%, ENI 20%) ► OMV is a strategic partner in the 4th largest refinery in the world, integrated i
Slide 20: Benefitting from an integrated position in Abu Dhabi
Benefitting from an integrated position in Abu Dhabi OMV’s integrated value chain in Abu Dhabi enhances profitability, increases optionality and reduces volatility Upstream Refining & Trading Petrochemicals/Polymers Sarb and Umm 20.0% 15.0% ADNOC Refining OMV’s share 2 Lulu OMV’s share 1 Borouge 14.
Slide 21: Europe needs more natural gas
Europe needs more natural gas EU-28 gas supply and demand Billion cubic meter (bcm) OMV Strategy 2025 500 460 480 ~40 Increase sales volumes to >20 bcm by 2025 Import Reach 10% market share in Germany Imports ~330 requirement of ~375 up to 415 bcm Increase equity gas volumes Leverage Nord St
Slide 22: Getting ready for a sustainable economy
Getting ready for a sustainable economy Alternative Future feedstocks & mobility circular economy 2025 targets 1 Gas ReOil® Reduce carbon intensity of EUR 500 mn operations by 19% for innovative energy solutions by 2025 Reduce carbon intensity of OMV’s product portfolio by 4% Hydrogen 2030 targe
Slide 23: Plastics-to-Oil: OMV's approach towards a circular economy
Plastics-to-Oil: OMV’s approach towards a circular economy Conversion of used plastics (PE,PP, PS) into ReOil® Process synthetic crude oil, further processed in Schwechat refinery Crude Refinery/ petchem International ReOil® process is patented internationally (e.g. oil process patent Europe, USA, R
Slide 24: OMV's commitment to ESG best practice widely recognized
OMV’s commitment to ESG best practice widely recognized Top 11 in global oil and gas Top 10% Top 11% Top 5% Top 7% Highest (Level 4) 24 | Capital Market Story, November 2019
Slide 25: Committed to the Paris Climate Agreement
OMV is committed to the goals of the Paris Climate Change Agreement and implements climate action measures SCOPE 1 SCOPE 3 Reduce the carbon intensity of OMV’s Reduce the carbon intensity of OMV’s operations 1 by product portfolio 2 by 19% by 2025 (vs. 2010) 4% by 2025 (vs. 2010) Reduce routine fl
Slide 26: Focus on disciplined organic investments
Focus on disciplined organic investments Organic CAPEX EUR bn 3.1 2.0 - 2.5 2.3 Increase in 2019 organic Capex guidance reflects a strong pipeline of profitable growth projects 1.8 The guided level of EUR 2.0 to 2.5 bn per year until 2025 sufficient to maintain our new portfolio and finance our
Slide 27: Healthy balance sheet with substantial gearing headroom
Healthy balance sheet with substantial gearing headroom Net debt and gearing ratio Net debt, 2018, EUR bn post-IFRS 16 Q3/19, EUR bn Gearing ratio target ≤30% 28% 4.9 Gearing Gearing ratio, 21% headroom at 2.6 the end of 2018, post-IFRS 16 pre-IFRS 16 Q3/19, EUR bn 4.0 14% 13% 29% 3.0 Impact of IFRS
Slide 28: Funding the announced acquisitions while delivering on progressive dividend policy
Funding the announced acquisitions while delivering on progressive dividend policy Sources and uses of cash (indicative figures) As of end of 2018, 3 years cumulative, EUR bn Acquisitions in 2019 ~15 Acquisition of share in SapuraOMV Gearing headroom Available for dividend growth, closed in Q1/1
Slide 29: New capital allocation priorities
New capital allocation priorities Previous priorities New priorities Organic Capex 1 Organic Capex ROACE TARGET Acquisitions 2 Dividends ≥12% Mid- and long-term Dividends 3 Debt reduction Debt reduction 4 Acquisitions 29 | Capital Market Story, November 2019
Slide 30: Delivering on our progressive dividend policy
Delivering on our progressive dividend policy – Record dividends in 2018 Dividend per share EUR CAGR 1.75 Record dividend of EUR 1.75 per share for 2018 +21% 1.5 (+17% vs. 2017) 1.20 We are committed to delivering an attractive and 1.00 predictable shareholder return through the business cycle
Slide 31: Upstream
Upstream OMV Aktiengesellschaft
Slide 32: Upstream – At a Glance
Upstream – At a Glance 2018 position Norway 427 kboe/d production (9m/19: 481 kboe/d) Russia with an oil and gas split of 43:57; Romania Austria Production cost at USD 7.0/boe (9m/19: USD 6.7/boe) Kazakhstan Bulgaria Kurdistan Region of Iraq 1P Reserves of 1,270 mn boe Tunisia Libya Reserve
Slide 33: Transformed Exploration strategy
Transformed Exploration strategy: ~60% success rate in 2018 Active in Austria, Romania deep onshore, Black Sea, Norway and New Zealand 2018 biggest success Increase size and quality of E&A portfolio Iris and Hades Apply proven excellence in exploration discovery in Norway Play opening succes
Slide 34: Technology drives recovery and reduces downtime
Technology drives recovery and reduces downtime Highlights Mean-time-between-failure of producing wells of over 1,600 days (Austria) Reduced number of well interventions per year from over 150,000 to below 6,000 (Romania 1) Low cost drilling 2 and drilling world records Over 80% automated
Slide 35: Transform OMV Upstream into a top digital player
Transform OMV Upstream into a top digital player Project examples Drilling cockpit for real-time collaboration Latest 3D visualization technology for geological interpretation Machine learning and cloud solutions for seismic data processing Future objectives Faster project evaluation for
Slide 36: Upstream strategy 2025
Upstream strategy 2025 ► Renew and improve the ► Production volume quality of our asset base of 500 kboe/d in 2020 and 600 kboe/d in 2025 ► Double reserves ► Production cost below ► Extend track record of USD 8/boe operational excellence ► 3 years RRR of >100% ► Increase cash generation Higher-quali
Slide 37: Strengthened reserve base
Strengthened reserve base 1P Reserves Reserve Replacement Rate Mn boe 3 years Ø RRR, % 1,270 160 49 Asia-Pacific 1,146 1,030 266 MEA 116 120 North Sea 232 Russia 70 602 CEE 2016 2017 2018 2016 2017 2018 37 | Capital Market Story, November 2019
Slide 38: Project pipeline enables growth
Project pipeline enables growth Production growth Kboe/d 600 <500 1 >500 427 348 Production cost both in 2020 and 2025 USD/boe <8 2017 2018 2019 2020 2025 1 Production at El Sharara in Libya resumed in March, 2019; starting with Q2/19, Libya is expected to produce above 35 kboe/d. 38 | Capital Marke
Slide 39: Focus shifts to strategy execution – Project pipeline
Focus shifts to strategy execution – Project pipeline Development New ventures Exploration Appraisal & Execution Abu Dhabi Austria Neptun Deep Nawara (Tunisia) Asia-Pacific Romania deep (Romania, Black SARB/Umm Lulu onshore Sea) (Abu Dhabi) 1 Black Sea Wisting (Norway) Achimov 4A
Slide 40: Major projects
Major projects Development & Execution Project Country Type Production Cum. production 1 Peak production Working interest Operated FID primary start year mn boe kboe/d % year Nawara Tunisia Gas 2019 40-50 ~10 50.0 by OMV 2014 Achimov 4A/5A 2 Russia Gas and condensate 2020 600 ~80 24.98 no 2016 SARB/
Slide 41: Focus on core regions
Focus on 5 core regions North Sea Russia CEE Asia-Pacific 1 MEA OMV Upstream regions Central Eastern Europe (CEE) North Sea Middle East and Africa (MEA) Russia Asia-Pacific Growth 1 On January 31, 2019 OMV acquired a 50% interest in SapuraOMV Upstream Sdn. Bhd. In addition to the Malaysian footprint
Slide 42: Sustain value generation in Romania and Austria
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Sustain value generation in Romania and Austria, realize Black Sea potential Presence in CEE Production split 9m/19 Strategic direction Kboe/d 6 25 Maximize profitable recovery Infill drillings, workovers, selected field re-develop
Slide 43: Growth project in Romania – Neptun Deep
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Growth project in Romania – Neptun Deep, Black Sea Neptun Deep – Project Phase: Engineering (pre-FID) Licensees: ExxonMobil (Operator, 50%), OMV Petrom (50%) Domino-1 discovery in 2012 (first offshore deep water exploration well)
Slide 44: Russia – Build upon huge potential
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Russia – Build upon huge potential Presence in Russia Production 9m/19 Strategic direction Kboe/d Realize organic growth potential ~100 kboe/d from Yuzhno Russkoye over next years 97 (OMV share 24.99%) Upside from Turonian reserv
Slide 45: Yuzhno Russkoye and Achimov 4A/5A production
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Yuzhno Russkoye and Achimov 4A/5A provide OMV with stable and sustainable production OMV production contribution from Russian fields 1 Kboe/d 200 150 100 50 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 Achimov 4A/5A Yuzhno Russkoye
Slide 46: North Sea region – Secure long-term contribution
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific North Sea region – Secure long-term sustainable contribution Presence in North Sea Region Production 9m/19 Strategic direction Kboe/d Aasta Hansteen on stream 85 First gas on December 16, 2018 Snefrid Nord production started on S
Slide 47: Middle East and Africa
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Grow and access potential in Middle East and Africa Presence in MEA Production split 9m/19 Kboe/d 4 Strategic direction 5 22 Further ramp up Umm Lulu and SARB and develop Ghasha 9 concession in Abu Dhabi 69 Secure stable contributi
Slide 48: Abu Dhabi – High-quality assets
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Abu Dhabi – High-quality assets with substantial cash generation Umm Lulu and SARB ► 20% interest awarded in April 2018; concession valid until March, 2058 (ADNOC: 60%, CEPSA: 20%) ► Annual CAPEX of ~USD 150 mn in first 5 years ► Produ
Slide 49: Growth project in Tunisia – Nawara
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Growth project in Tunisia – Nawara Nawara field – Project Phase: Execution Licensees: OMV (Operator, 50%), ETAP (50%) Cumulative production: 40-50 mn boe of gas Production start: expected towards end of 2019 Peak production: ~1
Slide 50: Asia-Pacific developed into core region
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific Asia-Pacific developed into core region Production 9m/19 Kboe/d Current developments/highlights 12 Partnered with Sapura’s Upstream business in Malaysia Malaysia 1 54 Acquired 50% interest in Sapura’s Upstream business, an independ
Slide 51: OMV acquired 50% of Sapura's Upstream business
CEE I Russia I North Sea I Middle East and Africa I Asia-Pacific OMV acquired 50% of Sapura’s Upstream business Presence in Malaysia Major independent Malaysian oil and gas company Total cumulative production estimated at around 260 mn boe 1 (100%) Average production in Q3/19 was ~14 kboe/d
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Slide 53: Downstream
Downstream OMV Aktiengesellschaft
Slide 54: Downstream Oil in a nutshell
Downstream Oil in a nutshell Downstream Oil presence as per year-end 2018 17.8 mn t (370 kboe/d) annual refining capacity in Austria, Germany and Romania, plus 7.1 mn t (150 Czech Republic 139 kboe/d) equity capacity in UAE Slovakia Hungary Romania Moldova 92 197 558 82 2.5 mn t petrochemical pr
Slide 55: European Downstream Oil Value Chain
European Downstream Oil Value Chain 2018 figures Refinery Product supply and Petrochemical/ commercial/ Crude supply production logistics retail sales Purchase of semi- Purchase of Retail finished products 1.3 mn t 1 finished products 2.7 mn t 2 6.3 mn t 49% Captive market 3 Equity crude production
Slide 56: Downstream Gas in a nutshell
Downstream Gas in a nutshell Downstream Gas presence 2018 position 114 TWh natural gas sales, thereof ~60% equity supplied 51% share in Gas Connect Austria, the Austrian Netherlands pipeline operator 30 TWh gas storage capacities in Austria and Germany Germany Stake in LNG terminal in Rotter
Slide 57: Downstream Gas Value Chain
Downstream Gas Value Chain 2018 figures Gas supply Gas logistics Gas marketing sales Equity production in Romania 45 TWh Gas sales to third parties Equity production 114 TWh in Norway 18 TWh Sales in Europe 1 66 TWh Equity production Gas supply in Austria portfolio 8 TWh Sales in Romania 148 TWh Gas
Slide 58: Best in class refinery utilization rate and stable sales
Best in class refinery utilization rate and stable sales Refined product sales Retail sales mn t mn t 10.4 30.7 OMV Petrol Ofisi OMV Petrol Ofisi divested in June divested in June 8.1 23.8 2017 2017 20.3 6.3 20.1 19.8 6.0 6.2 2016 2017 2018 2016 2017 2018 Refinery utilization rate Natural gas sales
Slide 59: Refining sites operated as one integrated refinery
OMV’s refining sites are operated as one integrated refinery 3 refining sites = 1 integrated refinery concept Optimize asset utilization through intermediate product exchanges Burghausen Schwechat Petrobrazi 3.8 mn t/a 9.6 mn t/a 4.5 mn t/a Increase the share of higher value ~10% equity
Slide 60: Top position in European refining benchmarking
Continuous cost and performance programs lead to a top position in European refining benchmarking HSB Solomon Associates LLC top ranking for Schwechat and Burghausen 1 and upside for Petrobrazi Net Cash Margin Net Cash Margin Net Cash Margin Schwechat, in USD/bbl Burghausen, in USD/bbl Petrobrazi, i
Slide 61: Flexible crude intake in OMV refineries
Flexible crude intake in OMV refineries Sources of processed crude oil 2018 Processed crude oil quality 2018 Heavy Others 16% Libya 27% Russia 4% Austria 4% Medium Azerbaijan 6% Light 21% 21% Kazakhstan Romania 2 Heavy crude API < 24; Light crude API > 34 According to US SEC 61 | Capital Market Stor
Slide 62: Favorable yield structure
Favorable yield structure Integrated refinery yield 1 Heavy fuel oil yield (%) 2018, % OMV vs European refineries 4 2017 13% Petrochemicals 9% 18% Gasoline <1% Sulfur 49% Middle distillates 2% Heavy fuel oil 6% Other black products2 >1% Sulfur 3% Others 2% 9% Fuel & Losses OMV European refineries 1
Slide 63: The share in Borealis is a core asset
The share in Borealis is a core asset in OMV Downstream and a basis for further growth Polyolefin production capacity Mn t p.a. Borealis Borealis contribution to #6 in polyolefins globally (incl. 100% of Borouge) OMV’s Clean CCS Operating Result in EUR mn #2 in polyolefins in Europe Borouge III
Slide 64: Downstream strategy 2025
Downstream strategy 2025 Europe International ► Downstream Oil: Further strengthen ► Export successful European refining competitive position and petrochemical business model to ► Operational excellence international growth markets ► Shift to higher value products ► Nearly double refining capacity ►
Slide 65: Strong petrochemicals position in Europe
Strong petrochemicals position in Europe and potential for future growth Production capacity Clean CCS Operating Result petrochemicals Mn t p.a. EUR mn 2.8 ~300 2.5 Butadiene and 2.3 aromatics 245 1.8 Propylene 109 104 Ethylene 2005 2010 2017 2025 2005 2010 2017 2025 1 Strong partnerships with lon
Slide 66: OMV Retail – Strong brands driving value growth
OMV Retail – Strong brands driving value growth OMV Petrom Avanti and Diskont ~65% of network ~25% of network ~10% of network Premium fuels; share in sales doubled since 2012 Most trusted retail brand in Perceived as most Leading shop and gastronomy concept in CEE Romania competitive i
Slide 67: Retail ambitions for the future
Retail ambitions for the future Profitability turnaround in last 6 years Highly efficient retail stations AT average DE average Operating Result per filling station, EUR 1,000 1 Average throughput per station, mn liters 1 2 RO average OMV Group >180 >180 3.6 3.7 3.8 3.8 ~3.8 ~25% 10 2012 2013 2014 2
Slide 68: Best in class captive sales volume
OMV will further improve its best in class captive sales volume Refineries Sales Retail sales volume % of refining capacity Equity crude oil processed 26% Captive sales outlets % of refining capacity % 35% 9% 40% 32% 23% 49% 21% 55% Petrochemical sales volume % of refining capacity 7% OMV – top refi
Slide 69: Strategic downstream partnership with ADNOC
OMV and ADNOC form a strategic downstream partnership – Decisive step to deliver OMV Strategy 2025 OMV – European Champion ADNOC Refining – Middle East Champion Operations Excellence Top performing ADNOC Refining team 1st quartile European Refiner 1 1st quartile Process Safety 2 Start up of ke
Slide 70: OMV acquires 15% interest in ADNOC Refining and Trading JV
OMV acquires a 15% interest in ADNOC Refining and in a to-be- established Trading Joint Venture ► Refining capacity of 922 kbbl/d: ► Ruwais Refinery East: 420 kbbl/d ► Ruwais Refinery West: 417 kbbl/d ► Abu Dhabi Refinery: 85 kbbl/d Dubai ► Petrochemical production: 1.7 mn t p.a. Abu Dhabi ► Associa
Slide 71: Trading Joint Venture to optimize margins
Trading Joint Venture instrumental to optimize margins along the value chain Refinery has an excellent location to supply growth markets ► Trading JV to start operations as early as 2020 ► OMV to own a 15% stake in the Trading JV ► Trading majority of export volumes of ADNOC Refining products as wel
Slide 72: Fantastic platform for further profitable growth
Fantastic platform for further profitable growth SELF-FUNDED GROWTH Profitable long-term growth pipeline Integrate in petchem Increase feedstock value chain Detailed feasibility studies for future Operational excellence projects ongoing flexibility (eg. new refinery) Upgrade naphtha streams: F
Slide 73: Nord Stream 2: Improvement of energy security in Europe
Nord Stream 2: Improvement of energy security in Europe Nord Stream 2 pipeline project Natural gas pipeline from Russia to Europe across the Baltic Sea Nord Stream 1 Russia 55 bcm per year capacity Development started in 2018 and is planned to finish by 2019 Nord Stream 2 Total project costs
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Slide 75: Financials
Financials OMV Aktiengesellschaft
Slide 76: Financial steering framework
Financial steering framework Shareholder return and strong rating Value + Cash Focus Strength of balance sheet and Growth in profitability and steady value enhancement adequate liquidity KPIs ROACE/EVA Free cash flow after dividends Gearing Clean CCS net income/NOPAT Principles Operational efficie
Slide 77: Development of the economic environment
Development of the economic environment Oil prices USD/bbl OMV indicator refining margin USD/bbl 80 75 6 5.7 5.5 69 69 5.2 63 62 5 60 68 66 4.0 62 60 59 4 3.2 40 3 Average Brent price 2 20 Average realized crude price 1 0 0 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Gas prices Ethyl
Slide 78: Financial performance overview
Financial performance overview in EUR mn (unless otherwise stated) 9m/19 2018 2017 2016 2015 2014 Clean CCS Operating Result before depreciation 1, 2 4,521 5,304 4,909 3,693 4,117 4,749 Clean CCS Operating Result 2 2,755 3,646 2,958 1,535 1,737 2,418 Clean CCS net income attributable to stockholders
Slide 79: Segments results
Segments results in EUR mn 9m/19 2018 2017 2016 2015 2014 Clean CCS Operating Result 1 2,755 3,646 2,958 1,535 1,737 2,418 Upstream 1,492 2,027 1,225 40 117 1,641 Downstream 1,292 1,643 1,770 1,533 1,546 812 Corporate and Other (36) (21) (16) (50) (43) (48) Consolidation 7 (3) (21) 12 116 13 1 Adjus
Slide 80: Cash flow
Cash flow in EUR mn 9m/19 2018 1 2017 2016 2015 2014 Net income 1,689 1,993 853 (183) (1,255) 527 Depreciation, amortization and impairments incl. write-ups 1,780 1,780 1,941 3,784 5,153 3,165 Change in net working capital components (227) 173 (424) (148) (400) 405 Other (167) 450 1,078 (575) (664)
Slide 81: Operational KPIs
Operational KPIs Hydrocarbon production Refined product sales Retail sales kboe/d mn t mn t 490 480 5.50 5.38 5.60 1.74 1.81 1.63 406 Q3/18 Q2/19 Q3/19 Q3/18 Q2/19 Q3/19 Q3/18 Q2/19 Q3/19 Hydrocarbon sales Refinery utilization rate Natural gas sales mn boe % TWh 44.1 42.8 98 96 96 26.8 27.2 35.2 23.
Slide 82: Full-year 2018 Clean CCS Results
Full-year 2018 Clean CCS Results Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR EUR mn Upstream Corporate & Others, Consolidation Downstream 3,646 4.97 4.88 1,624 1,594 2,958 2,027 3.52 1,148 1,225 3.05 995 1,737 117 1,535 40 1,54
Slide 83: Free cash flow of EUR 0.3 bn after record dividends
Free cash flow of EUR 0.3 bn after record dividends and major acquisitions Sources and uses 1 in 2018 EUR bn Cash flow from operating activities increased to EUR 4.4 bn (FY/17: EUR 3.4 bn) 4.9 +0.3 4.6 Cash inflow from disposals of EUR 502 mn mainly due 0.5 to sale of the Upstream business in Pa
Slide 84: Balanced maturity profile
Balanced maturity profile Maturity profile 1 EUR bn 1.5 A3 Outlook stable June 28, 2019 1.0 A- Outlook stable June 7, 2018 0.5 Fitch Ratings reconfirmed rating on January 29, 2019 following the ADNOC 0.0 Refining transaction 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029ff Multilateral/Syndi
Slide 85: Funding activities of the last years
Funding activities of the last years Date of issue Bond Amount in EUR mn Coupon in % Maturity November 2013 Eurobond (XS0996734868) 500 1.75 fixed 11/25/2019 February 2010 Eurobond (XS0485316102) 500 4.375 fixed 02/10/2020 October 2011 Eurobond (XS0690406243) 500 4.25 fixed 10/12/2021 October 2012 E
Slide 86: Diversified international shareholder base
Diversified international shareholder base Shareholder structure 1 Geographical distribution of institutional investors 1 0.4% 0.2% Consortium 6.8% 7% agreement - 31.5% Free float 18% 31% ÖBAG & MPPH 56.4% 327.3 mn 28.8% 43.6% shares 5% 5% 24.9% 7.4% 11% 22% Institutional investors ÖBAG 2 Austria Un
Slide 87: OMV has a two-tier Board structure
OMV has a two-tier Board structure Supervisory Board Two boards with distinctive roles: Executive Board responsible for managing the company and representing it vis à vis third parties Supervisory Board responsible for monitoring and guiding the Executive Board Information, Supervision, guidan
Slide 88: IFRS 16 Impact on OMV Group
IFRS 16 Impact on OMV Group Income statement 2019 Cash flow statement 2019 Balance sheet EUR mn EUR mn EUR mn Capital employed ~700 at Jan. 1, 2019 Depreciation ~90 Net debt Operating Free ~700 at Jan. 1, 2019 result ~5 cash flow ~85 Gearing ratio Net 2019 ~4 - 5 ppt income <5 Capex ~1
Slide 89: Sensitivities of OMV Group in 2019
Sensitivities of OMV Group in 2019 Annual impact 1 Clean CCS Operating Operating cash flow in EUR mn Result Brent oil price (USD +1/bbl) +60 +30 OMV invoiced gas price (EUR +1/MWh) +150 +105 CEGH/NCG gas price 3 (EUR +1/MWh) +50 +25 OMV indicator refining margin (USD +1/bbl) 2 +105 +80 Ethylene/prop
Slide 90: Outlook 2019
Outlook 2019 2018 Outlook 2019 Brent oil price (USD/bbl) 71 65 NCG gas price (EUR/MWh) 23 <23 Total hydrocarbon production (kboe/d) 427 < 500 1 OMV indicator refining margin (USD/bbl) 5.2 <5.0 Ethylene/propylene net margin (EUR/t) 448 448 Utilization rate refineries (%) 92 >92 Organic CAPEX (EUR bn)
Slide 91: Sustainability
Sustainability OMV Aktiengesellschaft
Slide 92: What sustainability means for us
What sustainability means for us At OMV, sustainability means creating long- term value for our customers and shareholders by being innovative and an employer of choice. We conduct our business in a responsible way, respecting the environment and adding value to the societies in which we operate. 92
Slide 93: Responsible and sensible use of oil and gas
Responsible and sensible use of oil and gas Oil is a valuable resource Oil as an energy source: when renewable energies are not available or affordable, or when a guarantee is needed that supplies are available in sufficient quantity (e.g. jet fuels) Oil as a raw material: premium materials and
Slide 94: Gas is an enabler for the energy transition
Gas is an enabler for the energy transition to a lower-carbon energy system Electricity production: By switching from coal to gas immediate CO2 savings of 50%. Natural gas Transport sector: Using gas instead of gasoline emits up to 95% less CO21 and CNG almost no particulate matter. The technolo
Slide 95: Continuous improvement in safety performance
Continuous improvement in safety performance to protect people and the environment Occupational safety Process safety 1 0.74 Peer companies 2018: ˃0.39 0.43 0.34 0.30 0.29 0.18 2010 2017 2018 Target 2014 2017 2018 Target 2025 Lost-time injury rate per 1 mn working hours Process safety events per 1 m
Slide 96: OMV's Sustainability Focus Areas
OMV‘s Sustainability Focus Areas Focus Areas Commitments Health, Safety, Zero work related fatalities Security and Stabilize Lost-Time Injury Rate at below 0.30 (per 1 million working hours) Environment Keep leading position for Process Safety Event Rate Lower OMV’s carbon intensity of opera
Slide 97: Health, Safety, Security and Environment (HSSE)
Health, Safety, Security and Environment (HSSE) The health and safety of our employees and integrity of our facilities are crucial in terms of acceptance within society. OMV acts responsibly towards the environment. COMMITMENTS TARGETS 2025 SUSTAINABLE DEVELOPMENT Health, safety, security, and pro
Slide 98: Carbon Efficiency
Carbon Efficiency OMV recognizes that climate change is one of the most important global challenges. The responsibility for a solution is in the hands of the entire community and requires global action. OMV is committed to the goals of the Paris Climate Change Agreement and implements climate action
Slide 99: Innovation
Innovation Research and development, and use of innovative solutions are important elements in guaranteeing long-term value creation for OMV, society and the environment, as well as in ensuring our competitiveness. COMMITMENTS TARGETS 2025 SUSTAINABLE DEVELOPMENT OMV’s innovation efforts focus on
Slide 100: Employees
Employees OMV aims to create an environment where all employees can learn, grow, connect and work together, and are able to strike the right work-life balance. OMV strives to be an employer of choice. COMMITMENTS TARGETS 2025 SUSTAINABLE DEVELOPMENT OMV is committed to building and Increase shar
Slide 101: Business principles and social responsibility
Business principles and social responsibility OMV aims to be an attractive partner and adheres to the highest ethical standards in its business conduct. OMV relies on transparency and trust in its relations with internal and external stakeholders in order to ensure acceptance within society. COMMITM
Slide 102: Contact Investor Relations
Contact Investor Relations Florian Philipp Vlad Oana Eric Nicolas Kleopatra Greger Chladek Alexandru Goje Schmiedchen Tegelmann Tinchon Head of Investor Investor Investor Investor Investor Assistant Investor Relations Relations Relations Relations Relations and Relations Manager Manager Manager Mana
Slide 103: OMV Aktiengesellschaft
The energy ouv for a better life. O M V
OMV Aktiengesellschaft — Non-Deal Roadshow (November 2019) on 6ix