Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Investor Day (June 2024)
46 slides from Omv's investor day presentation, Jun 13, 2024
Slide 1: Update Strategy 2030 Breakout session
Update Strategy 2030 Breakout session London – June 13, 2024
Slide 2: Disclaimer
Disclaimer © 2024 OMV Aktiengesellschaft, all rights reserved, no reproduction without our explicit consent. This presentation contains forward-looking statements. forward-looking statements may be identified by the use of terms such as “outlook”, “believe”, “expect”, “anticipate”, “intend”, “plan”,
Slide 3: Breakout session Chemicals
01 Breakout session Chemicals Daniela Vlad Executive Vice President Chemicals London – June 13, 2024
Slide 4: Strengthen, expand and diversify chemicals portfolio
Strengthen, expand and diversify chemicals portfolio Strategic priorities 2030 strategic targets • Grow polyolefin specialty sales volumes +30% • Deliver on ongoing growth projects (Baystar, Kallo, Borouge 4) Specialty sales volumes vs. 2023 and increase geographical diversification • Establish a le
Slide 5: Polyolefin demand continues to show strong growth rates to 2030
Polyolefin demand continues to show strong growth rates to 2030 Polyolefin demand (virgin and recycled) Chemical market trends mn t +4.2% 287 CAGR 2023-2030 • Global supply outpaces demand, with significant new capacities in China and the CAGR Virgin Recycled 2023-30 Middle East 215 • Announced firs
Slide 6: Global footprint in Chemicals with a strong foundation in Europe
Global footprint in Chemicals with a strong foundation in Europe based on innovation strength Capacity Polyolefin sales • Global footprint with two strong partners in Region mn t volumes 2023 the US and Middle East • Integrated olefin-polyolefin player in all Olefins 4.2 0.7 regions Europe Other bas
Slide 7: Chemical assets well positioned on cost curve
Chemical assets well positioned on cost curve supported by high feedstock flexibility/integration • 75% of OMV chemical assets are in first two High feedstock flexibility quartiles of European cost curve1 of Nordic crackers − Nordic crackers – access to sea and storage caverns, leading to high flexi
Slide 8: Differentiation through specialty products
Differentiation through specialty products Absolute polyolefin sales margin of Borealis excl. JVs Clean unit polyolefin sales margin EUR mn Average 2018-2023, EUR/t 10-year view Standard products Europe PE/PP average Specialty products indicator margin, EUR/t 659 508 458 418 377 438 335 351 339 262
Slide 9: Growth opportunities in specialty products
Growth opportunities in specialty products End-use industry Growth target in polyolefin Europe CAGR 2023-2030 specialties volumes, mn t • Global market leader in insulation for high-voltage cables • Recent investment decisions in capacity expansion and asset Energy modernization in Sweden/Belgium +4
Slide 10: Innovation – Examples of specialty products
Innovation – Examples of specialty products Groundbreaking Water supply and sewage sustainable cable networks in the unique jacketing solution “Garden City" of Tapiola in Helsinki Unique protection in high voltage segment secures more than 75% share in the German renewable energy Uponor Blue pipes w
Slide 11: Proprietary process technologies in producing specialty polyolefins
Proprietary process technologies in producing specialty polyolefins © Renasci Borstar® BorlinkTM BorceedTM BorcycleTM • Proprietary PE/PP production • Technology process platform for • Technology process platform for • Recycled polyolefin technology process technology crosslinked products soft-polym
Slide 12: European efficiency improvement program
European efficiency improvement program • Launched efficiency program in Chemicals in 2022 focusing on volumes, pricing and variable costs, to prepare for a potential market downturn • Delivered ~EUR 140 mn of operating cash flow contribution EUR +150 mn p.a. already in 2023 • Defined in 2024 additi
Slide 13: Mid-term earnings contribution from growth projects
Mid-term earnings contribution from growth projects 1st 1st 1st quartile Baystar, USA quartile PDH Kallo, Belgium quartile Borouge 4, UAE 50% Borealis 100% Borealis 40% Borealis 1.0 mn t Ethane-to-ethylene p.a. 740 kt Propylene p.a. 1.5 mn t Ethane-to-ethylene p.a. 1.0 mn t PE p.a. 2025 Start-up pla
Slide 14: Circular chemicals – a key growth opportunity
Circular chemicals – a key growth opportunity with adoption of regulations later than expected European regulations 2030 recycled and bio content targets % • EU adopted a revised packaging regulation (PPWR) in April 2024 1 L’Oreal 100% • Quotas for a minimum proportion of recycled content are to be
Slide 15: Sales volumes of sustainable base chemicals and polyolefins will grow
Sales volumes of sustainable base chemicals and polyolefins will grow up to 1.4 mn t by 2030 Sustainable base chemicals and polyolefin sales volumes kt • Renewable bio-based 1,400 − Based on sustainable feedstocks from own HVO plants − Based on green hydrogen from own electrolyzers 450 − Bio-ethylen
Slide 16: A wide range of sustainable solutions along the value chain
A wide range of sustainable solutions along the entire value chain End consumer reach through brand owners Mechanical End of life recycling plastics as • MTM feedstock • Ecoplast Collection and sorting • Rialti ReUse cooperation • Integra • Interzero JV Design for recycling Recycle • Recelerate JV •
Slide 17: Chemicals 2030 – significant potential for growth
Chemicals 2030 – significant potential for growth by 2030 Chemicals Cash flow from operating Chemicals Chemicals activities Organic Capex Cash flow from operating EUR bn Average 2024-2030 activities ≥3.0 4 2 EUR ~1.1 bn ~60% 2030 ~20% 1.0 0 2023 2030 339 480 Europe PE/PP indicator margin Sustainable
Slide 18: Chemicals 2030 – Key take aways
Chemicals 2030 – Key take aways We address current market challenges in Europe • Assets well positioned on the cost curve and highly flexible, ensuring above market asset utilization 1 • High share of specialty grades • Efficiency measures program in place We differentiate through innovation: We lea
Slide 19: Breakout session Fuels & Feedstock
02 Breakout session Fuels & Feedstock Martijn van Koten Executive Vice President Fuels & Feedstock London – June 13, 2024
Slide 20: Creating a sustainable Fuels & Feedstock champion
Creating a sustainable Fuels & Feedstock champion Strategic priorities 2030 strategic targets • Become a leading innovative producer of renewable fuels and ~1.5 mn t chemical feedstock with a strong anchor in Europe Renewable fuels and chemical feedstock production capacity • Deepen integration with
Slide 21: Attractive global demand growth for renewable fuels
Attractive global demand growth for renewable fuels Global SAF demand Europe Renewable diesel (HVO) mn t • SAF mandate1 demand 15 20% mn t 30 Global Global 6% 5 2% 16 Europe2 2025 2030 2035 Europe 5 North America 11 North North America • Market-driven America incentive programs • Strong voluntary de
Slide 22: Progressing project pipeline for renewable fuels and chemical feedstock
Progressing project pipeline for renewable fuels and chemical feedstock Majority of the projects Production capacity to start 2028-2030 kt ~1,500 Co-processing plant Start-up 2024 Kallo Capacity 135 kt2 SAF/HVO plant SAF Burghausen Start-up 2028 Capacity 250 kt Schwechat Road biofuels Petrobrazi Che
Slide 23: OMV Petrom to become the first major producer of renewable fuels in SEE
OMV Petrom to become the first major producer of renewable fuels in SEE → FID June 2024 – Start-up 2028 → CAPEX of EUR 560 mn for the SAF/HVO plant → Production capacity of 250 kt p.a. → Strong yield flexibility between aviation, road fuels, and chemical feedstock → High share of non-food feedstock;
Slide 24: Successful pre-marketing of SAF volumes
Successful pre-marketing of SAF volumes and development of innovative business solution Signed MoUs to supply SAF 2024-2030 ~1.5 mn t OMV SAF Business Solutions to accelerate decarbonization of corporate market • First SAF-certificates sold to • Chain-of-custody model guided by the RSB Book & Claim
Slide 25: Securing outlets in OMV aviation hubs and entering new markets
Securing outlets in OMV aviation hubs and entering new markets Actively growing SAF demand → Continuing successful pre-marketing → Scouting market entries in ARA-region, Germany, and other adjacent airports → Aiming to utilize CEPS to create new market potential Central Europe Pipeline System (CEPS)
Slide 26: Exploring SAF opportunities in international markets
Exploring SAF opportunities in international markets Strategic investment rationale • Geographical diversification, utilizing opportunities from other growing markets • International partner for customers meeting the blending targets and voluntary commitments (e.g., Lufthansa, Microsoft) • Supplier
Slide 27: A wide range of initiatives to ensure feedstock for our projects
A wide range of initiatives to ensure feedstock for our projects Vegetable, waste, Feedstock for bio-fuels advanced oils • Long-term supply contracts prerequisite for project FIDs and alcohols • Develop a portfolio of pre-treatment and import facilities • Backward integration via M&A and JVs (e.g.,
Slide 28: Innovation – Catalyst for future Fuels & Feedstock growth
Innovation – Catalyst for future Fuels & Feedstock growth Bio pathway Glycerin2Propanol pilot plant • Alternative and new feedstock sources for HVO processes and new pre-treatment technologies May 2024 Started commissioning of the plant • Capture integration synergies in renewable feedstock • Develo
Slide 29: Leverage on our strong retail market position in CEE
Leverage on our strong retail market position in CEE ~1,700 sites in CEE • Multibrand strategy covering broad range of customer needs ~60% in Austria and Romania − OMV as high-end quality, Petrom as value-for-money, DISKONT and Avanti as discount brands Czech Republic • Growing fuel demand in Southe
Slide 30: Develop a leading EV network in the CEE region
Develop a leading EV network in the CEE region EV fast and ultra-fast charging points ~5,000 640 May 20241 2030 OMV MyStation App • Leverage OMV’s strong retail position in CEE • Strengthening customer loyalty • Charging points at OMV sites and at destinations points • More than 1 million active use
Slide 31: Focus on maximizing the integrated margin of classic fuels
Focus on maximizing the integrated margin of classic fuels across the value chain Strong refinery integration with demand centers Retail • Strong retail network in the proximity of 5.4 mn t refineries • High degree of forward integration into ~10 Chemical feedstock Chemicals; steam crackers embedded
Slide 32: Transforming, while securing profitability and refining margin upside
Transforming, while securing profitability and maintaining refining margin upside potential F&F Clean CCS Operating Result F&F F&F EUR bn Organic Capex Cash flow from operating European classic fuel activities demand 2030 vs 2019 4 1.7 –30% 1.0-1.3 2 0.91 2024-2030 ~60% 2030 30% 0 2017-2019 2023 203
Slide 33: Fuels & Feedstock 2030 – Key take aways
Fuels & Feedstock 2030 – Key take aways Strong classic fuels business and deepening refining–chemicals integration • Leverage integrated value chain potential (refining, supply, wholesale, retail and trading) 1 • Deepen refining–chemicals integration whilst optimizing refining yields for maximum mar
Slide 34: Breakout session Energy
03 Breakout session Energy Berislav Gaso Executive Vice President Energy London – June 13, 2024
Slide 35: Investing in E&P and low-carbon solutions
Investing in E&P and low-carbon solutions Strategic priorities 2030 strategic targets • Actively manage and high-grade the oil and gas portfolio; ~350 kboe/d reposition as Europe-centric player 2030 production • Deliver the operated EUR 4 bn Neptun Deep, largest gas ~60% development project in the E
Slide 36: Refocus production portfolio in and around Europe
Refocus production portfolio in and around Europe North • High-grade portfolio in the Norwegian Continental Norway North Shelf in order to manage decline • Focus on gas • Leverage tax synergies Austria Romania CEE CEE • Leverage strong capabilities as operator of mature fields to manage decline Tuni
Slide 37: Maintain target of ~350 kboe/d production by 2030
Maintain target of ~350 kboe/d production by 2030 Production guidance kboe/d 365 330-350 ~350 • Focus on gas as transition fuel ~40% Oil <9 USD/boe • Primarily infrastructure led exploration 53% ~60% Production cost 2030 • Portfolio high-grading through organic and inorganic projects • Key investmen
Slide 38: Deliver recurring operating cash flow improvement program
Deliver recurring operating cash flow improvement program → Production/Margin: Production optimization through enhanced drilling and workover Efficiency program program, acceleration of exploration, margin improvements in gas business, etc 10 → Cost optimization via contractor management, energy eff
Slide 39: Neptun Deep, the largest gas offshore project in the EU
Neptun Deep, the largest gas offshore project in the EU Operator: Partner: OMV Petrom (50%) Romgaz (50%) Location: Romanian Black Sea 100% project view 2P reserves: ~700 mn boe (~100 bcm) Production at plateau: ~140 kboe/d Production cost: ~3 USD/boe Unit development CAPEX: ~5.5 USD/boe IRR1: >12% G
Slide 40: Gas and Power – a significant earnings contributor
Gas and Power – a significant earnings contributor • Assets support energy security Storage and LNG • Storage business is fully hedged; profitability is a function of summer- winter spreads ~70 TWh Storage capacities in Austria and • LNG asset position covered long-term; signed long-term contracts G
Slide 41: Low Carbon Business to generate a material contribution by 2030
Low Carbon Business to generate a material contribution by 2030 and growing afterwards Low Carbon Business Energy Low Carbon Business ambition by 2030 Organic Capex 2024-2030 Cash flow from operating activities EUR mn ~4 TWh ~600 Geothermal energy ~400 Rest of Low Carbon 3-4 TWh portfolio EUR ~13 bn
Slide 42: Applying existing and new technologies to unlock geothermal energy potential
Applying existing and new technologies to unlock geothermal energy potential Open loop Produce and recycle hot thermal water ~4 TWh ≥10% existing from aquifers (“we rely on reservoirs”) Target IRR proven • First well to spud end of 2024 in Vienna basin technology • First plant (20 MW capacity) in 20
Slide 43: Build power portfolio in SEE and selectively invest in Western Europe
Build power portfolio in SEE and selectively invest in Western Europe 3-4 TWh ≥10% Target OMV Group IRR Strategic priorities Integrated power business in Romania • Investments in renewable power primarily in Southeastern Europe Equity and Gas customers: third-party gas • End users − Strong renewable
Slide 44: CO2 storage solutions for hard-to-abate sectors
CO2 storage solutions for hard-to-abate sectors ~3 mn t p.a. ≥10% 10% North Sea • OMV to leverage subsurface capabilities and exploration resources to gain relevant CO2 expertise Target IRR Target market share in EU • License awarded in Norway together with Aker BP − Storage potential (100%) of >5 m
Slide 45: Energy 2030 – Key take aways
Energy 2030 – Key take aways 1 Maximize cash and value generation from existing E&P assets 4 Invest EUR 5 bn in building a new low carbon business 2 Focus, high-grade and optimize E&P portfolio 5 Benefit from resilient low cash break-even assets in E&P Material contribution from low-carbon 3 Strengt
Slide 46: OMV
5) OMV