Slide 1: OMV Results January – December and Q4 2011
OMV Aktiengesellschaft OMV Results January – December and Q4 2011 Gerhard Roiss, Chairman of the Executive Board and CEO David C. Davies, Deputy Chairman of the Executive Board and CFO Jaap Huijskes, Executive Board member responsible for E&P February 22, 2012 Move & More.
Slide 2: Strong performance in a challenging year
Strong performance in a challenging year New strategy “Profitable Growth” launched in September 2011 Successful closing of two large capital market transactions (EUR 1.5 bn) Lost-time injury rate in Petrom reduced by 50% within 3 years Group Excellent production performance in Romania: No de
Slide 3: Strong financial performance in 2011 (1)
Strong financial performance in 2011 (1) Clean CCS EBIT up 2% to EUR 2,509 mn Clean CCS EBIT, EUR mn E&P: Production at 288 kboe/d, down by 9% due to political 2,509 +2% instability in Libya and Yemen 2,470 225 232 Romanian production stabilized at 174 kboe/d 279 238 High average oil price of
Slide 4: Strong financial performance in 2011 (2)
Strong financial performance in 2011 (2) At a glance Clean CCS EBIT up 2% to EUR 2,509 mn (2010: EUR 2,470 mn) Net income 1 up by 30% to EUR 1,572 mn (2010: EUR 1,214 mn) Cash flow from operating activities down to EUR 2,514 mn (2010: EUR 2,886 mn) CAPEX 2 stable at EUR 3,146 mn (2010: EUR 3
Slide 5: Results Q4/11
OMV Aktiengesellschaft Results Q4/11 Move & More.
Slide 6: Q4/11: Strong fourth quarter concludes a challenging year
Q4/11: Strong fourth quarter concludes a challenging year Clean CCS EBIT at EUR 730 mn, up 29% vs. Q4/10 Average oil price at USD 109.35/bbl, 26% above Q4/10 (USD 86.46/bbl) OMV indicator refining margin declined by 49% vs. Q4/10 Agreement on gas price revision reached in Q4/11 Production
Slide 7: Results for Q4/11
Results for Q4/11 Q3/11 Q4/11 Q4/10 in EUR mn 1 2011 2010 Q4/10 2010 564 533 582 (8)% EBIT 2,473 2,334 6% (71) (41) (247) (83)% Financial result (273) (373) (27)% (135) (131) (139) (6)% Taxes (628) (747) (16)% 27% 27% 42% (36)% Effective tax rate 29% 38% (25)% 358 361 195 85% Net income 1,572 1,
Slide 8: Cash flow
Cash flow Q3/11 Q4/11 Q4/10 in EUR mn 1 2011 2010 Q4/10 2010 358 361 195 85% Net income 1,572 1,214 30% 394 418 375 12% Depreciation and amortisation 1,626 1,578 3% 3 (11) 299 n.m. Other (152) 182 n.m. 756 768 869 (12)% Sources of funds 3,046 2,974 2% 102 (388) 35 n.m. Change in net working capi
Slide 9: Gearing ratio development
Gearing ratio development 60 50 46 47 40 34 33 34 in % 30 20 Gearing ratio (net debt / equity) 10 Gearing ratio target ≤ 30% 0 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Maintaining a strong investment grade credit rating remains key priority 9 | OMV Group, Q4/11
Slide 10: Hedging program
Hedging program 2011: Oil price swaps for a production volume of 50,000 bbl/d (thereof 25,000 bbl/d at Petrom level) Brent price: USD ~97/bbl EUR-USD average rate forwards at USD 1.37 Net result in Q4/11: EUR (48) mn 2012: Oil price swaps for a production volume of 50,000 bbl/d (thereof 30
Slide 11: CAPEX and EBITD
CAPEX and EBITD CAPEX EBITD Q4/11: EUR 886 mn Q4/11: EUR 948 mn 2011: EUR 3,146 mn 2011: EUR 4,096 mn 3,500 3,094 3,000 CAPEX 2011 EBITD 2011 2,500 2,066 2,000 1,500 1,000 800 468 575 500 279 37 0 (28) (48) (500) E&P G&P R&M Co&O Consolidation 11 | OMV Group, Q4/11
Slide 12: Special items
Special items Q3/11 Q4/11 Q4/10 in EUR mn 1 2011 2010 564 533 582 EBIT 2,473 2,334 (13) (16) (39) Personnel related costs (39) (101) (4) (31) 3 Unscheduled depreciation (57) (258) 16 (1) 8 Asset disposals 23 32 (6) (117) 1 Other (140) 4 (7) (166) (27) Total special items (212) (323) 571 698 609 Clea
Slide 13: Clean CCS EBIT
Clean CCS EBIT OMV Group clean CCS EBIT Q4/11: EUR 730 mn (Q4/10: EUR 567 mn) 800 Q4/10 730 Q4/11 600 567 551 461 400 200 129 134 82 63 0 (3) (46) (39) (33) (200) E&P G&P R&M Co&O Consolidation Total thereof Petrom group clean CCS EBIT: E&P G&P R&M Co&O Consolidation Total Q4/10 Q4/11 Q4/10 Q4/11 Q4
Slide 14: Economic environment
Economic environment 60% 800 50% 40% 30% 600 20% 10% EUR mn 0% 400 (10)% 727 730 (20)% 582 567 (30)% 469 (40)% 200 (50)% (60)% (70)% 0 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Clean CCS EBIT in EUR mn (right hand scale) Regulated domestic gas price for producers (USD) Average Brent price OMV indicator refining
Slide 15: Group E&P: Restart of production in Libya, but production suspended again in Yemen
Group E&P: Restart of production in Libya, but production suspended again in Yemen Production up by 2% vs. Q3/11 mainly due to the partial resumption of production in Libya and increased production in the UK and Romania Q4/11 clean EBIT above Q3/11 mainly due to an increase in gas sales due to s
Slide 16: Petrom E&P: Strong contribution to Group results
Petrom E&P: Strong contribution to Group results Clean EBIT 12% higher than in Q3/11, mainly due to positive FX effects and lower costs, despite a lower oil price Increased production vs. Q3/11 in Kazakhstan and Romania, where first volumes from Totea contributed to production Q3/11 Q4/11 Q4/10
Slide 17: Exploration activities – Update
Exploration activities – Update Norway: Austria: Kurdistan Region of Iraq: • Zidane discovery: 20% stake acquired late • Mistelbach 3D seismic: • Bina Bawi-3: Testing finalized; December; Zidane-2 exploration well spudded 40% of 325km² acquired results being evaluated • Chamonix-1: First OMV operate
Slide 18: Project activities – Update
Project activities – Update UK, West of Shetland: Romania: • Schiehallion redevelopment: FID • Totea: Discovered in July 2011, tied-in in taken in July, detailed design and October 2011, appraisal well spudded in procurement process (i.e. for February 2012 FPSO, drilling rig…) progressing, first oil
Slide 19: Group R&M: Improved clean CCS result in spite of difficult economic environment
Group R&M: Improved clean CCS result in spite of difficult economic environment Improved cost position and operational performance more than offset lower OMV indicator refining margin as a result of a higher oil price in Q4/11 vs. Q4/10 Higher petrochemical margins vs. Q4/10 (+10%) supported the
Slide 20: Petrom R&M: Significantly improved refining performance
Petrom R&M: Significantly improved refining performance First positive full-year clean CCS EBIT since privatization Improved cost and operational performance supported by Arpechim closure more than offset extremely low refining margin East EBIT burdened by provisions booked for the antitrust f
Slide 21: Petrol Ofisi R&M: Industry retail margins under pressure in Q4/11
Petrol Ofisi R&M: Industry retail margins under pressure in Q4/11 Market leader in white oil product sales with market share of 26% and step-up to leading position in lubricants business (market share: 24%) Industry retail margins under pressure due to more stringent regulatory environment (EMRA
Slide 22: Group G&P: Favorable price revision partially offset margin pressure
Group G&P: Favorable price revision partially offset margin pressure Successful negotiations on price revision partially offset strong pressure on EconGas’ margins Gas transportation business reported higher volumes vs. Q4/10 due to additional pipeline capacity available in Austria Nabucco tra
Slide 23: Petrom G&P: Construction of power plants finalized
Petrom G&P: Construction of power plants finalized Lower EBIT compared to Q4/10 mainly due to import obligation and reversals of bad debt provisions in Q4/10 Brazi construction successfully completed by the end of 2011, however, final tests interrupted due to external technical factors Wind pa
Slide 24: Outlook 2012
Outlook 2012 Roll-out of the group-wide performance program “energize OMV” Net CAPEX 2012 to be in line with the guidance of average annual net CAPEX of EUR 2.4 bn (excl. acquisitions) Continued focus on Health, Safety, Security and Environment (HSSE) Group New sustainability strategy Buil
Slide 25: Strategy “Profitable Growth”: Main targets
Strategy “Profitable Growth”: Main targets Stabilized production in Romania and Austria: 200-210 kboe/d until 2014 Production growth until 2016 1: ~2% p.a. organic, up to 4% incl. acquisitions Access to upstream gas: Romania, Caspian region and Middle East ~100% reserve replacement rate 2 by
Slide 26: Our strategy “Profitable Growth”
Our strategy “Profitable Growth” Asset base, in % Growing upstream E&P 35 ~55 G&P 12 Integrated ~20 R&M 53 gas ~25 OMV OMV target portfolio 2010 portfolio 2021 Restructured oil downstream Increasing asset base significantly by 2021 26 | OMV Group, Q4/11
Slide 27: 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 28: 28 | OMV Group, Q4/11
28 | OMV Group, Q4/11