Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Investor Day (March 2018)
21 slides from Omv's investor day presentation, Mar 13, 2018
Slide 1: OMV Strategy – Capital Markets Day
2025 OMV STRATEGY CAPITAL MARKETS DAY London Ι March 13, 2018
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements. Forward looking statements usually 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 c
Slide 3: #invest in a growing company – OMV Capital Markets Day
#invest in a growing company OMV Capital Markets Day Rainer Seele Rainer Seele CEO and Chairman of Chief Executive Officer Chairman of the Executive Board the Executive Board London – March 13, 2018 March 13, 2018 OMV Aktiengesellschaft
Slide 4: Created a more focused, higher performing OMV
Created a more focused, higher performing OMV Clean CCS Operating Result Focused on cash and costs – drastically reduced EUR bn free cash flow break-even, outperformed cost reduction target 3.0 Transformed Upstream into a sustainable business with >100% Reserve Replacement Rate 1.7 Restructured Down
Slide 5: Improved profitability
Improved profitability Oil price free cash flow break-even 1 Clean CCS ROACE After dividends excluding acquisitions and disposals, USD/bbl % +75% (64)% 70 14 8 35 7 25 2015 2016 2017 2015 2016 2017 1 Calculation of the oil price free cash flow break-even is based on the free cash flow after dividend
Slide 6: OMV's integrated and balanced portfolio pays off – strong cash flow and resilience
OMV’s integrated and balanced portfolio pays off – strong cash flow and resilience Cash generation and oil price development 1 EUR bn 3.9 Increased cash generation despite sharp oil price decline from USD 3.3 3.2 3.0 Downstream ~100/bbl in 2014 to USD 54/bbl in 2017 Reshaped and balanced portfol
Slide 7: Global oil and gas demand continues to grow
Global oil and gas demand continues to grow Global primary energy demand Bn toe + 16% 16.0 15.0 1 13.8 2.8 Renewables 2.4 1.9 0.8 0.9 Nuclear Global primary demand expected to 0.7 increase by 16% by 2030 3.9 Coal 3.8 3.8 Oil and gas demand continues to increase and will account for more 4.4 4.6
Slide 8: Global oil demand growth will support new investments
Global oil demand growth will support new investments Global oil demand Bn tons 4.6 4.7 4.3 1 0.5 Others 0.5 0.4 Global oil demand will continue 0.5 0.5 Europe 0.6 to increase 1.2 1.2 Americas Asia Pacific, Middle East, Africa and 1.3 Russia demand to grow and account 0.2 Russia 0.2 0.1 0.6 Midd
Slide 9: Global gas demand will increase by >20% until 2030
Global gas demand will increase by >20% until 2030 Global gas demand Bn toe 3.7 3.4 0.1 Others 3.0 0.1 0.5 Europe Asia Pacific, Middle East and 0.5 0.1 Africa drive the demand growth 0.5 1.1 Americas 1.0 Existing and sanctioned projects 0.9 will not meet demand 0.4 Russia 0.4 Middle East 0.4 0.7
Slide 10: Asia Pacific – main driver for demand growth
Asia Pacific – main driver for demand growth Fuels demand Petrochemical products demand Mn tons Mn tons 1,830 430 1,750 1,510 340 220 710 690 660 480 490 420 90 70 80 25 30 15 Europe Middle East Asia Pacific Europe Middle East Asia Pacific 2016 2025 2030 Global fuels demand to increase by 9% from
Slide 11: Market assumptions
Market assumptions Medium term Long term Brent oil price USD/bbl 70 70 – 80 Central European Gas Hub price EUR/MWh 20 20 – 22 OMV indicator refining margin USD/bbl 5 ≤5 FX EUR/USD rate 1.20 1.15 – 1.20 11 Capital Markets Day, March 13, 2018
Slide 12: OMV 2025 – Higher performance and more value ahead
OMV 2025 – Higher performance and more value ahead ► Leverage on proven concept of integration ► Significantly internationalize Upstream and Downstream ► Build strong gas market presence in Europe ► Extend record of operational excellence Drive operating result and cash generation 12 Capital Markets
Slide 13: Higher-quality Upstream portfolio
Higher-quality Upstream portfolio Focused international player > 100% 4+1 600 Reserve core 500 Replacement regions Rate 1 348 8.8 <8 <8 2017 2020 2025 Production volumes, kboe/d Production cost, USD/boe 1 3 years average 13 Capital Markets Day, March 13, 2018
Slide 14: Downstream Oil – Further strengthen European position and grow internationally
Downstream Oil – Further strengthen European position and grow internationally 1 quartile st 1 ► Shift to higher value products ► Further increase captive sales volumes ► Export successful European business model internationally towards growing markets Fuels Olefins ► Increase petrochemical and Net
Slide 15: Downstream Gas – Build strong market presence in Europe
Downstream Gas – Build strong market presence in Europe ► Leading integrated supplier from North West to South East Europe ► Monetize increasing equity supply > 80% gas to be imported by 2030 ► Double sales revenues and increase overall margins ► Leverage Nord Stream 2 380 bcm imports required 1 1 I
Slide 16: Continue to grow value
Continue to grow value Clean CCS Operating Result EUR bn ≥5 Capex ≥4 Acquisitions 0.75 Downstream ► Positive free cash flow after Capex dividends 3 Acquisitions 0.75 ► Long term gearing ratio target of ≤ 30% ► Progressive dividend policy Upstream 2017 2020 2025 16 Capital Markets Day, March 13, 2018
Slide 17: Focused investments
Focused investments CAPEX Acquisitions EUR bn EUR bn 2.0 - 2.5 10 2.1 Downstream 8 years 1.8 Upstream 3 years 2015-2017 2018-2025 2015-2017 2018-2025 Ø p.a. Ø p.a. Efficient capital allocation Value adding acquisitions Strict cost management Keep optionality and flexibility Invest along th
Slide 18: Capital allocation priorities
Capital allocation priorities 1 CAPEX ROACE TARGET 2 Acquisitions ≥12% 3 Dividends Mid- and long- term 4 Debt reduction 18 Capital Markets Day, March 13, 2018
Slide 19: OMV's growth strategy will be implemented in a safe, responsible and carbon efficient manner
OMV’s growth strategy will be implemented in a safe, responsible and carbon efficient manner Safety first Carbon efficiency Recognition Carbon intensity Lost Time Process safety GHG emissions per unit Injury Rate events OMV Operations External product sales 1 (23)% (74)% (15)% stable 2017 vs 2014 20
Slide 20: OMV – Higher performance and more value ahead
OMV – Higher performance and more value ahead Well positioned for profitable growth Growth along the entire value chain Drive strong cash flow generation Solid basis for growth and dividends Leverage on integrated portfolio Natural hedge ensuring resilience Deliver attractive shareholder returns Pro
Slide 21: OMV 2025 – Higher performance and more value ahead
OMV 2025 – Higher performance and more value ahead Higher-quality Upstream portfolio 600 kboe/d by 2025 4+1 core regions Balanced integrated portfolio International Downstream Oil Nearly double refining capacity Strengthen petrochemical position Positive free cash flow after dividends Strong