OMV AG · VIE:OMV
OMV — OMV Aktiengesellschaft — 16th German Corporate Conference (January 2017)
26 slides from OMV's conference presentation, Jan 16, 2017
Slide 1: 16th German Corporate Conference
16th German Corporate Conference Reinhard Florey, Chief Financial Officer Frankfurt am Main January 16, 2017 Value creation through performance OMV Aktiengesellschaft
Slide 2: Disclaimer
Disclaimer This document does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of any contract, investment decisions or commitment whatsoever.
Slide 3: OMV – an international, integrated oil and gas company
OMV – an international, integrated oil and gas company Upstream ► Three core regions: CEE, North Sea, Middle East and Africa ► Production: 303 kboe/d (~50% oil, ~50% gas) ► 1P reserves at year-end: 1.03 bn boe (reserves life of 9.3 years) ► ~90% of production in EU and OECD countries Downstream Oil
Slide 4: Financial performance in 9m/16
Financial performance in 9m/16 Clean CCS EBIT Clean CCS net income Free cash flow in EUR mn attributable to stockholders in EUR mn in EUR mn 1,203 645 968 796 842 266 103 9m/15 9m/16 9m/15 9m/16 (426) 9m/15 9m/16 55 42 Brent price in USD/bbl Free cash flow before dividends 7.7 4.5 OMV indicator refi
Slide 5: Targeting a long-term gearing ratio of ≤30%
Targeting a long-term gearing ratio of ≤30% Net debt development Strong liquidity position as of Q3/16 in EUR bn Cash position at EUR 1.7 bn 5 4.04 3.99 Committed revolving credit facilities of 4 3.74 EUR 3.6 bn (undrawn) 3 Net debt Sept. 2016: EUR 3.74 bn (Dec. 2015: 2 EUR 4.04 bn) 1 Gearin
Slide 6: Major achievements in reshaping our portfolio
Major achievements in reshaping our portfolio Initiation of Sale of 30% in Sale of a 49% Sale of Divestment of process to divest Rosebank stake in Gas Aliaga OMV UK OMV Petrol Ofisi closed; Connect Austria terminal in Upstream USD 50 mn closed; Turkey subsidiary received in Q4/16 EUR 601 mn closed c
Slide 7: Strategy in a nutshell
Strategy in a nutshell Upstream Downstream Exploration Development Production Downstream Downstream Gas Oil Restructure and Strong cash Value over volume growth grow volume generator 7 | OMV Group, 16th German Corporate Conference, January 16, 2017
Slide 8: Upstream activities will be focused
Upstream activities will be focused Edvard Grieg (Lundin), Norway Urengoy, Russia (source Gazprom) Schönkirchen, Austria New Abu Dhabi, UAE Zealand Core regions contribute ≥ 50 kboe/d Core region 1 – CEE Core region 3 – MEA Core region 2 – Norway Development areas (Russia, UAE, Iran) Note: Some expl
Slide 9: OMV divests Upstream UK subsidiary
OMV divests Upstream UK subsidiary Rationale for divestment: Reduced focus on long-lead deep water development assets Transaction value: Up to USD 1 bn Economic effective date: January 1, 2016 Partner in 22 licenses in the UK Continental Shelf Closing on January 13, 2017 9 | OMV Group, 16t
Slide 10: Asset swap between OMV and Gazprom: Binding basic agreement signed
Asset swap between OMV and Gazprom: Binding basic agreement signed ► OMV to receive a 24.98% stake in Achimov IV/V blocks, Urengoy natural gas and condensate field ► Gazprom to receive a 38.5% participation in OMV’s wholly owned subsidiary OMV (NORGE) AS ► The economic effective date will be January
Slide 11: Achimov IV/V significantly increases production and reserves for OMV
Achimov IV/V significantly increases production and reserves for OMV OMV’s share of Achimov’s IV/V production Long-term, stable production base for OMV development Achimov IV/V sanctioned in March 2016 in kboe/d Total cumulative production: 2.2 bn boe 100 OMV’s share: 560 mn boe ~70% gas and ~30
Slide 12: 2016 CAPEX guidance reduced to EUR 2 bn
2016 CAPEX guidance reduced to EUR 2 bn Group CAPEX ► Focus on profitable barrels and incl. capitalized E&A in EUR bn sustainable reduction of unit CAPEX cost (28)% ► Main investments in 9m/16: 2.8 ► Gullfaks, Schiehallion and Aasta 2.2 Hansteen in the North Sea 2.0 ► Field redevelopment projects as
Slide 13: 41% reduction of E&A expenditure in 2016
41% reduction of E&A expenditure in 2016 E&A expenditure E&A expenditure forecast reduced to in EUR mn EUR 360 mn from EUR 450 mn in 2016 ► Lower activities across the portfolio (41)% ► Focus on low cost regions and near- 607 field opportunities ► Main activities in Norway, Romania 360 and Bulgaria
Slide 14: On track to deliver committed cost savings
On track to deliver committed cost savings Operating cost 1 reduction in EUR mn 150 Delivery of EUR 100 mn >150 New target already in 2016E >50 mn EUR 100 100 100 Original target 50 100 mn EUR 0 Baseline 2015 Dec. 2016 Dec. 2017 1 On comparable basis. 14 | OMV Group, 16th German Corporate Conference
Slide 15: Downstream Gas: Restructure and grow volume
Downstream Gas Restructure and grow ► Create lean Northwest European gas volume sales business ► Sale of 49% minority stake in Gas Connect Austria completed ► Minimize power activities 15 | OMV Group, 16th German Corporate Conference, January 16, 2017
Slide 16: Downstream Oil: Strong cash generator
Downstream Oil Strong cash generator ► Maintain strict capital and cost discipline ► Strengthen integrated margin ► Divest OMV Petrol Ofisi 16 | OMV Group, 16th German Corporate Conference, January 16, 2017
Slide 17: OMV in 2020 – Sustainable resource base with improved profitability
OMV in 2020 – Sustainable resource base with improved profitability ► Cash: Broadly free cash flow neutral after dividends ► Production: 360 kboe/d including upside from Russia and Libya/Yemen ► Reserve Replacement Rate: 100% ► Downstream Gas: Restructured, profitable European gas business ► Downstr
Slide 18: OMV Aktiengesellschaft
IV Aktiengesellschaft ouv Moving more. Moving the future. oO M Vv
Slide 19: Backup
Backup OMV Aktiengesellschaft
Slide 20: Development of economic environment
Development of economic environment Oil price Brent OMV indicator refining margin in USD/bbl OMV in USD/bbl oil price 80 8 forecast 2016 2017 2018 2019 2020ff 7.8 60 Price 44 55 65 70 75 6 5.9 40 50 4 5.1 44 46 46 4.7 34 3.7 20 2 0 0 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Gas pr
Slide 21: Financial performance in Q3/16
Financial performance in Q3/16 Key financials Q3/16 Q2/16 Δ (%) in EUR mn Clean CCS EBIT 415 214 94 Clean CCS net income 447 222 101 attributable to stockholders Clean CCS 1.37 0.68 101 Earnings Per Share (EPS), in EUR Free cash flow after dividends 239 172 39 Special items (350) (608) 43 EBIT 63 (3
Slide 22: Income statement summary
Income statement summary in EUR mn Q3/16 Q2/16 Δ (%) Q3/15 Clean CCS net income attributable to stockholders EBIT 63 (300) n.m. (728) in EUR mn Financial result 75 72 3 9 447 Thereof Borealis 110 111 (2) 93 101% Taxes (8) 111 n.m. 258 Net income 129 (117) n.m. (461) 222 Thereof attributable to non-c
Slide 23: Cash flow
Cash flow in EUR mn Q3/16 Q2/16 Q3/15 Net income 129 (117) (461) Depreciation, amortization, impairments including write-ups 899 1,157 1,631 Change in net working capital components (154) 345 232 Other (223) (349) (267) Cash flow from operating activities 652 1,036 1,135 Cash flow used for investmen
Slide 24: Substantially increased results despite ongoing difficult market environment
Substantially increased results despite ongoing difficult market environment Key financials Q3/16 Q2/16 Q3/15 Special items and CCS effect in EUR mn Q3/16 in EUR mn 415 (3) Clean CCS EBIT 415 214 495 Thereof Upstream 38 0 52 (350) -350 Downstream 377 250 402 Corporate and Other (7) (12) 3 63 Consoli
Slide 25: Financial priorities in a nutshell
Financial priorities in a nutshell Improve shareholder return Focus on cash flow Maintain strong balance sheet 25 | OMV Group, 16th German Corporate Conference, January 16, 2017
Slide 26: OMV Aktiengesellschaft
IV Aktiengesellschaft ouv Moving more. Moving the future. oO M Vv
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