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Omv — OMV Aktiengesellschaft — Q4 2019 Earnings Presentation

25 slides from Omv's earnings presentation, Feb 6, 2020

1. Slide 1: OMV Q4 and full year 2019 Results Conference Call

   OMV Q4 and full year 2019 Results Conference Call February 6, 2020 OMV Aktiengesellschaft Rainer Seele Chairman of the Executive Board and CEO The spoken word applies 1/25 | OMV Group

2. Slide 2: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 2/25 |

   OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 2/25 | OMV Group

3. Slide 3: Macro environment – Weaker market environment than in Q4/18

   OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Ladies and gentlemen, good morning and thank you for joining us today. The fourth quarter of 2019 was characterized by significant volatility. Low gas prices and weaker petrochemical margins offset OMV’s substantial increase in prod

4. Slide 4: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 4/25 |

   OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 4/25 | OMV Group

5. Slide 5: Key messages Q4 2019

   OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Slide 4: Key messages Q4 2019 Although we had a better operational performance, the clean CCS Operating Result declined by 26 percent to 781 million Euros. This was due to the weaker market environment, in particular in gas and petr

6. Slide 6: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 6/25 |

   OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 6/25 | OMV Group

7. Slide 7: Clean CCS Operating Result impacted by weaker market environment and higher depreciation

   OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Slide 5: Clean CCS Operating Result impacted by weaker market environment and higher depreciation Let’s now turn to more details of our financial performance in the fourth quarter of 2019. Our clean CCS Operating Result decreased by

8. Slide 8: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 8/25 |

   OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 8/25 | OMV Group

9. Slide 9: Upstream – Higher gas sales volumes offset by weaker market environment

   OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Slide 6: Upstream – Higher gas sales volumes offset by weaker market environment, fewer oil liftings in Norway, and higher depreciation Let me now come to the performance of our two business segments. Compared to the fourth quarter

10. Slide 10: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 10/25 |

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 10/25 | OMV Group

11. Slide 11: Downstream – Weaker market environment in petrochemicals

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Slide 7: Downstream – Weaker market environment in petrochemicals partially offset by stronger Gas result and ADNOC contribution In Downstream, the clean CCS Operating Result decreased by 13 percent to 385 million Euros. The Downstr

12. Slide 12: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 12/25 |

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 xx 12/25 | OMV Group

13. Slide 13: 2019 cash flow from operating activities excluding net working capital effects at EUR 4.3 bn

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Slide 8: 2019 cash flow from operating activities excluding net working capital effects at EUR 4.3 bn Turning to cash flow, the fourth quarter was again strong with an operating cash flow ─ excluding net working capital effects ─ of

14. Slide 14: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 14/25 |

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 14/25 | OMV Group

15. Slide 15: Strong full year results despite weaker market environment

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Slide 9: Strong full year results despite weaker market environment Putting our last year’s performance into perspective: despite a weaker macro environment, we managed to achieve a clean CCS Operating Result of 3.5 billion Euros in

16. Slide 16: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 16/25 |

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 16/25 | OMV Group

17. Slide 17: Healthy balance sheet

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Slide 10: Healthy balance sheet Despite major acquisitions, OMV’s balance sheet remained very healthy and showed strong liquidity with a cash position of 2.9 billion Euros at the end of the fourth quarter. Following the payment of t

18. Slide 18: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 18/25 |

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 18/25 | OMV Group

19. Slide 19: Delivering on our progressive dividend policy – Record dividends in 2019

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Slide 11: Delivering on our progressive dividend policy – Record dividends in 2019 Ladies and gentlemen, as I already mentioned, we will again deliver on our progressive dividend policy. We will propose to the Annual General Meeting

20. Slide 20: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 20/25 |

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 20/25 | OMV Group

21. Slide 21: Outlook 2020

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Slide 12: Outlook 2020 Let’s now come to the outlook for this year. For 2020, we assume an average Brent price of 60 Dollars per barrel and expect the average realized gas price to be below the level of 2019. The refining indicator

22. Slide 22: Page intentionally left blank

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Page intentionally left blank 22/25 | OMV Group

23. Slide 23: Natural gas sales volumes in 2020 projected above 2019

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020  Natural gas sales volumes in 2020 are projected to be above those in 2019.  Organic CAPEX is projected to come in at around 2.4 billion Euros, thereof 1.6 billion Euros in Upstream.  We expect the clean tax rate for the year 202

24. Slide 24: OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 24/25 |

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 24/25 | OMV Group

25. Slide 25: Move towards a lower-carbon future

    OMV Q4 and full year 2019 Results Conference Call, February 6, 2020 Slide 13: Move towards a lower-carbon future Before we come to your questions, I would like to address an important topic that has shaped the public discussions and which is of particular importance for the future of our industry: h

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