Omv Ag · VIE:OMV
Omv — Investor Day (March 2018)
23 slides from Omv's investor day presentation, Mar 13, 2018
Slide 1: OMV Strategy 2025 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: Capital Markets Day – Manfred Leitner, Downstream
Capital Markets Day Manfred Leitner Downstream Executive Board Member London, March 13, 2018 OMV Aktiengesellschaft
Slide 4: OMV Downstream in a nutshell – 2017
OMV Downstream in a nutshell – 2017 Focus on Europe ~15% 0.4 17.8 mn t 2.5 mn t Gas Lost Time Injury Rate Refining capacity Petrochemical capacity EUR 1.8 bn ~50% 2,039 36% 11 bcm Clean CCS Fuels Retail sites Share in Borealis Gas sales Operating Result ~35% Downstream Company Petrochemicals of the
Slide 5: We delivered on our promises
We delivered on our promises 2016 commitments DOWNSTREAM OIL DOWNSTREAM GAS CASH GENERATION Improved operational Created lean basis for IN DOWNSTREAM OIL excellence European gas sales business Maintained strict capital and cost discipline Divested wind power business in Romania Divested Turkish oil
Slide 6: Strong contributor to OMV Group financials
Strong contributor to OMV Group financials Improvement in operations Strong cash flow generator Attractive returns Clean CCS Operating Result, EUR bn Free cash flow, EUR bn 2 RONA in % 18 1.8 1.7 Downstream 1.5 1.5 0.2 Gas 14 14 0.2 1.3 0.2 0.9 Divestments Downstream 1.6 1.6 Oil 0.8 1.3 0.1 9.2 8.8
Slide 7: Key success factors for OMV Downstream
Key success factors for OMV Downstream DOWNSTREAM OIL DOWNSTREAM GAS #1st quartile European refiner 1 Integrated gas value chain from and olefin producer 2 well to customer High share of secure product outlets Long-term reliable partnerships with Europe’s major gas suppliers Strong retail
Slide 8: Downstream strategy 2025
Downstream strategy 2025 Europe Downstream Oil: Further strengthen competitive position Downstream Gas: Become the leading integrated supplier with a strong market presence from North West to South East Europe International Export successful European refining and petrochemical business model t
Slide 9: Europe – further grow competitive position
Europe – further grow competitive position Cash generator Operational excellence Shift to higher value products Further increase captive sales channels Double gas sales volumes Stringent cost management 8 Capital Markets Day, March 13, 2018
Slide 10: OMV will upgrade its European refining assets to market changes
OMV will upgrade its European refining assets to market changes European market OMV European production 2016 - 2025 volume 2025 Change 2025 volumes Up to EUR ~ 1 bn planned investments +12% 2.8 mn t for upgrades in 2018 - 2025 Petrochemicals Increase production of petrochemicals Maximize jet f
Slide 11: 3 refining sites = 1 integrated refinery concept
Continuous efforts on operational excellence SCHWECHAT 3 refining sites = 1 integrated refinery concept Optimize asset utilization through intermediate product exchanges Increase the share of higher value products with minimum investments Identify and maximize high margin feedstock EUR ~ 50
Slide 12: 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 in p
Slide 13: 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 3.7 3.8 ~3.8 ~160 3.6 160 ~25% 10 2012 2013 2014 2015 2
Slide 14: Strong petrochemicals position in Europe and potential for future growth
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 +12% 2.5 Butadiene and 2.3 aromatics 245 1.8 Propylene 109 104 Ethylene 1 2005 2010 2017 2025 2005 2010 2017 2025 Strong partnerships wit
Slide 15: The share in Borealis is a core asset in OMV Downstream
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 16: OMV will further improve its 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 24% Captive sales outlets % of refining capacity % 35% 9% 40% 31% 25% 47% 21% Petrochemical sales volume 55% % of refining capacity 7% OMV – top refi
Slide 17: Europe needs more natural gas
Europe needs more natural gas EU-28 gas supply and demand Bcm 500 +40 460 ~40 Increasing European gas demand supported by the Imports ~ 330 switch from coal to gas ~375 Declining European indigenous production requires further gas import volumes EU-28 production ~130 ~85 Demand Demand 2016 2030
Slide 18: OMV aims to double the natural gas sales in Europe
OMV aims to double the natural gas sales and build a strong market presence in Europe Nord Stream 1 Yamal-Europe Increase equity gas volumes in Norway, Romania and Russia Nord Stream 2 Urengoy-Uzhgorod Leverage Nord Stream 2 to support TransBalkan Baumgarten hub OPAL Secure utilization of LNG
Slide 19: Develop international Downstream Oil position
Develop international Downstream Oil position Export successful European model to growing markets Establish 1-2 core regions outside Europe; MoU with ADNOC Long term Expand petrochemical position Nearly double refining capacity Acquisition budget Grow refining capacity until 2025, EUR bn ~5 18
Slide 20: The majority of demand growth driven by Asia
The majority of demand growth driven by Asia Development of fuels and petrochemicals demand 2016 to 2030 Mn t +20 +7 +18 1 Europe Russia (60) +320 +32 +70 +12 +15 Americas +210 Middle East +50 Fuel products +18 Petrochemicals Africa Asia ► Growth in global oil demand >90% from Asia 1 CIS & EE ► Grow
Slide 21: Increase in demand triggers substantial capacity additions
Increase in demand triggers substantial capacity additions Global refinery capacity vs. demand 1 Petrochemicals capacity vs. demand Mn t p.a. Mn t p.a. 155 250 145 200 = = 5,400 880 4,950 Borouge ~35 580 x polymer ~25 Schwechat x refinery capacity 2016 Announced Gap 2030 2016 Announced Gap 2030 4,80
Slide 22: Strong oil demand required utilization rates above 80% in Asia, Middle East and Russia
Strong oil demand required utilization rates above 80% in Asia, Middle East and Russia Europe Russia Middle East Asia Africa 84% 88% 85% 85% 82% 82% 73% 73% Refinery utilization rate 1 65% 61% 2017 - 2030 2017 2030 2017 2030 2017 2030 2017 2030 2017 2030 Standard refining margin 4.9 >5.3 2 6.6 n.a.
Slide 23: Downstream strategy 2025 – Key takeaways
Downstream strategy 2025 – Key takeaways EUROPE Stay Downstream Oil champion Become the leading integrated supplier of natural gas INTERNATIONAL Export our know-how to international growth markets 22 Capital Markets Day, March 13, 2018