Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Investor Day (March 2018)
20 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 – Reinhard Florey, CFO
Capital Markets Day Reinhard Florey Chief Financial Officer London, March 13, 2018 OMV Aktiengesellschaft
Slide 4: We deliver on our financial targets …
We deliver on our financial targets … 2016 commitments Reduced annual Generated free cash CASH CAPEX 1 by 40% to flow after dividends 4 EUR 1.7 bn since 2015 of EUR 1 bn in 2017 Saved EUR 330 mn 2 Deleveraged OMV and substantially to net debt of exceeded cost EUR 2 bn 5 and built reduction targets u
Slide 5: … and create shareholder value
… and create shareholder value Annualized Total shareholder return Last five 2017 Last three years years OMV 61% 39% 18% Peers 1 20% 27% 13% ATX 2 34% 19% 10% FTSEUR1ST 300 OIL & GAS 2 6% 10% 6% FTSE EUROTOP 100 2 9% 6% 9% 1 BP, ENI, Galp, Lundin Petroleum, MOL, Neste Oil, PKN Orlen, Repsol, Shell,
Slide 6: Active portfolio management
Active portfolio management We successfully transformed our portfolio … at the same time we built the foundation for and disposed non-core assets … profitable growth OMV UK Libya Smaller non-core assets Yuzhno Russkoye … Minority in Gas Connect Austria 1 Unmanned filling stations Petrol Ofisi Smatri
Slide 7: Stringent cost discipline
Stringent cost discipline Cost savings program 1 CAPEX 3 2015 normalized baseline, EUR mn EUR bn (40)% 330 2.8 250 1.9 200 1.7 Delivered Target 2 Target 2 Delivered 100 Target 2016 2017 2015 2016 2017 1 Based on Operating Cost versus 2015 baseline according to OMV definition on a comparable basis 2
Slide 8: Substantially improved financial performance
Substantially improved financial performance Clean CCS net income attributable to stockholders EUR bn Clean CCS EPS 1.6 2017, EUR 2015 EUR 1.1 4.97 3.52 1.0 54 Oil price 52 USD/bbl Clean CCS Economic Value 44 Added 2017, EUR bn 2015 EUR bn 1.1 0.1 2015 2016 2017 7.2 4.7 6.0 OMV Indicator refining ma
Slide 9: Strong organic cash generation provides optionality
Strong organic cash generation provides optionality Organic free cash flow after dividends Excluding acquisitions and disposals, EUR bn Organic free 1.2 cash flow after dividends 3.5 3.4 0.4 2.9 2.8 2.5 2.3 (0.7) 2015 2016 2017 Operating cash flow Dividends Cash flow for investing activities excludi
Slide 10: Strengthened balance sheet
Strengthened balance sheet Net debt and gearing ratio EUR bn 4.0 Cash position Target long-term 3.0 EUR bn 1 gearing ratio 28% 21% 2.0 4.0 ≤30% 14% Undrawn revolving Gearing ratio credit facilities Net debt EUR bn 1 3.5 1 As of end 2017 2015 2016 2017 9 Capital Markets Day, March 13, 2018
Slide 11: Balanced maturity profile
Balanced maturity profile Maturity profile Strong investment grade rating EUR bn 1.5 Baa1 A- Outlook stable Outlook stable 1.0 June 12, 2017 Feb 12, 2018 Financing costs 1 0.5 2015 2017 0.0 2.45% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027ff 2.76% 1 Weighted average interest rate of OMV Group’
Slide 12: 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 13: Cost discipline remains an imperative
Cost discipline remains an imperative OMV’s cost discipline culture New efficiency target 1 Operational efficiency in both Upstream and Downstream 2018 - 2020 Capture economies of scale and strict management of overhead costs Process optimization and harmonization Procurement savings and contractor
Slide 14: CAPEX – disciplined investing while growing
CAPEX – disciplined investing while growing CAPEX 1 2018 - 2025 CAPEX 1 2018 - 2025 EUR bn EUR bn 3/4 1/3 Growth Downstream 2.0 - 2.5 2.0 - 2.5 on average p.a. on average p.a. ~25% 1/4 2/3 Maintenance Upstream & mandatory 1 CAPEX excluding purchase price acquisition CAPEX and contingent consideratio
Slide 15: M&A criteria – focus on cash and value
M&A criteria – focus on cash and value Strategic VALUEcriteria Financial criteria ROACE ≥12% Strategic fit Cash profile Return profile Balanced Upstream and Free cash flow positive mid-term Defined investment hurdles Downstream portfolio considering Timely cash generation with a Focus on l
Slide 16: Funding the growth – mid term perspective
Funding the growth – mid term perspective Sources of cash Uses of cash 3 years cumulative, indicative based on 2018 - 2020, EUR bn 2017 Operating cash flow, EUR bn Cash contribution Disposals and from M&A Gearing cost optimizations 2018 - 2020 headroom 2 3x 2017 Allocation optionality Operating cash
Slide 17: Maintain resilience
Maintain resilience Oil price free cash flow break-even 1 After dividends excluding acquisitions and disposals, USD/bbl Generating cash, delivering value 70 Capturing value- Efficient CAPEX accretive growth spending opportunities Sustainable Integrated business 35 generation of organic model and bal
Slide 18: Attractive shareholder returns
Attractive shareholder returns Dividend per share EUR 50% ++50% 1.5 Record dividend of EUR 1.50 per share for 2017 proposed 1.2 We are committed to delivering an attractive and 1.0 predictable shareholder return through the business cycle Progressive dividend policy: OMV aims to increase the d
Slide 19: Financial priorities and long-term targets in a nutshell
Financial priorities and long-term targets in a nutshell Positive free cash flow after dividends Competitive shareholder returns Growing Gearing ratio Clean CCS net income attributable to stockholders ≤30% Strong investment grade credit rating ROACE 18 Capital Markets Day, March 13, 2018 ≥12%
Slide 20: Finance strategy 2025 – Key takeaways
Finance strategy 2025 – Key takeaways Enable growth Drive performance Reward shareholders 19 Capital Markets Day, March 13, 2018