Slide 1: OMV results January – December and Q4 2013
OMV results January – December and Q4 2013 February 19, 2014 OMV Aktiengesellschaft
Slide 2: Strategic highlights and 2013 full year results
Strategic highlights and 2013 full year results Gerhard Roiss, Chairman of the Executive Board and CEO OMV Aktiengesellschaft
Slide 3: Market environment 2013
Market environment 2013 Brent oil price in USD/bbl 12/2013 113 01/2013 110 Oil price: Decreasing to avg. USD 109/bbl (2012: USD 112/bbl) Operating environment: Instability in Middle East and North Africa ongoing Gas prices: Further decoupling from oil-indexation Refining margins: Over capacity leads
Slide 4: Financial performance in 2013
Financial performance in 2013 Clean CCS EBIT in EUR mn Exploration and Production (26)% Production decrease to 288 kboe/d (2012: 303) mainly due to political unrest (Libya) and 3,407 stops/maintenance (UK, New Zealand) Brent price down to USD 109/bbl (2012: 112) First production from Gullfaks
Slide 5: 2013 investments funded by strong cash generation
2013 investments funded by strong cash generation Cash generation and uses in 2013 in EUR bn ~ 5.8 ~ 5.8 Debt NWC North Sea Highest cash generation and CAPEX acquisition in OMV’s history Dividends Upstream Group CAPEX 2013 (incl. acquisitions): Investments: EUR 5.2 bn of which 85% in E&P Upstrea
Slide 6: Strong operational performance
Strong operational performance Cash flow from operations incl. divestments in EUR bn ~5 ~4 ~3 2011 2012 2013 6 | OMV Group, Results January - December and Q4 2013
Slide 7: What we promised in 2011
What we promised in 2011 Asset base in % We aim to be a focused, ~45 Downstream integrated oil and gas 65 company with improved overall profitability and 35 ~55 Upstream strong growth in upstream OMV OMV target portfolio portfolio 2010 2021 Increasing upstream asset base significantly by 2021 7 | OM
Slide 8: Transforming OMV: We are delivering ahead of schedule
Transforming OMV: We are delivering ahead of schedule Portfolio shift to upstream Asset base in % 49 ~45 Downstream 65 51 ~55 Upstream 35 2010 2013 2014E From low-return downstream (<5%) to high-return upstream business (>10%) 8 | OMV Group, Results January - December and Q4 2013
Slide 9: Downstream: Cash for upstream growth
Downstream: Cash for upstream growth Strong free cash flow from downstream 1 in EUR bn Executed downstream divestments 2.0 Significant net working capital reduction 1.0 Strong operational performance in oil downstream (e.g. 92% refining 0.0 utilization rate) (1.0) 2010 2011 2012 2013 1 R&M und
Slide 10: Net working capital significantly reduced
Net working capital significantly reduced Group net working capital on balance sheet, in EUR bn Net working capital reduction Improved inventory management Payment term management Supply chain financing 1.7 1,7 1,3 1.3 1,3 Sale of Austrian national stockholding business (0.1) 2011 2012 2013
Slide 11: Achieving upstream growth
Achieving upstream growth OMV production kboe/d Focus on delivery ~400 ~300 320-340 2006 2008 2010 2012 2014 2016 11 | OMV Group, Results January - December and Q4 2013
Slide 12: Results Q4/13
Results Q4/13 David C. Davies, Deputy Chairman of the Executive Board and CFO OMV Aktiengesellschaft
Slide 13: Q4/13 Highlights
Q4/13 Highlights Clean CCS EBIT in EUR mn Production at 277 kboe/d, down by 8%; E&P sales volumes down by 14% 956 Average Brent price at USD 109/bbl; EUR/USD at 1.36 Higher exploration expenses 698 G&P supported by renegotiated Statoil contract 444 and interim agreement with Gazprom OMV in
Slide 14: Economic environment
Economic environment Oil price and EUR/USD Gas prices in EUR/MWh OMV indicator refining margin in USD/bbl 140 1.36 1.4 35 4.5 30 4.0 135 1.30 4.0 30 28 130 1.3 3.5 125 25 27 27 120 1.2 3.0 115 110 109 20 2.5 110 1.1 15 15 2.0 105 10 1.5 100 1.0 1.2 10 95 1.0 90 0.9 5 0.5 85 80 0.8 0 0.0 Q4/12 Q1/13
Slide 15: Results in Q4/13
Results in Q4/13 Clean CCS net income attributable in EUR mn Q4/13 Q4/12 to stockholders in EUR mn 1 EBIT 213 791 (73)% Financial result (194) (104) 86% Profit from ordinary activities 19 687 (97)% 393 Taxes 41 (284) n.m. Effective tax rate (218)% 41% n.m. Net income 59 403 (85)% Minorities and hy
Slide 16: Special items and CCS effect
Special items and CCS effect Q4/13 in EUR mn Q4/13 Q4/12 in EUR mn 444 Clean CCS EBIT 444 956 (43) CCS gains/(losses) (43) (37) (12) Clean EBIT 401 919 (165) Personnel related costs (12) (18) Unscheduled depreciation (165) (45) 12 (24) 213 Asset disposals 12 85 Other (24) (150) Total special items (
Slide 17: Cash flow
Cash flow 2013 in EUR mn 2013 2012 in EUR mn Net income 1,729 1,790 (3)% Depreciation and 2,253 2,036 11% (544) 673 amortization Other (544) (251) 117% 2,253 Sources of funds 3,437 3,576 (4)% Change in net working 1,729 673 237 184% (4,803) capital Cash flow from 4,110 3,813 8% operating activiti
Slide 18: CAPEX and EBITD
CAPEX and EBITD 2013 Key investments in Q4/13 in EUR mn 5,226 Asset acquisition from Statoil (UK and Norway) 4,891 Petrom drilling, workovers and redevelopment projects Field developments in Norway (Edvard Grieg and Aasta Hansteen) 3,361 4,431 Schiehallion redevelopment project (UK) 224 EB
Slide 19: Mid-term guidance
Mid-term guidance Production Group CAPEX kboe/d Group operating cash flow and planned divestments expected to ~400 EUR ~3.9 bn fund both the investment program as 320-340 well as dividends Dividend to increase in line with net income attributable to stockholders (payout ratio 30%) ~80% Mid-ter
Slide 20: Exploration and Production Clean EBIT
Exploration and Production Clean EBIT in EUR mn Q4/13 vs. Q3/13 Q4/13 vs. Q4/12 698 6 578 (37) (261) (53) (143) (100) (39) (51) (49) 257 257 (35) Q3/13 Realization Volume Exploration DD&A Other Q4/13 Q4/12 Realization Volume Exploration DD&A Other Q4/13 expenses expenses Lower sales volumes mainly
Slide 21: Exploration and Production Key Performance Indicators
Exploration and Production Key Performance Indicators Hydrocarbon production (in kboe/d) Q4/13 vs. Q3/13 301 302 297 275 277 Production increased by 1% 159 163 159 138 First production in Norway (Gullfaks) 142 Security issues in Libya 142 139 138 133 139 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Oil and N
Slide 22: Exploration and Production Petrom group
Exploration and Production Petrom group Hydrocarbon production (in kboe/d) Q4/13 vs. Q3/13 183 183 184 182 181 Clean EBIT at EUR 286 mn down by 18%, 88 89 88 88 mainly due to 87 Higher production costs and royalties Lower oil sales 95 94 96 94 94 Romanian production slightly down vs. Q3/13;
Slide 23: Gas and Power Clean EBIT
Gas and Power Clean EBIT in EUR mn Q4/13 vs. Q4/12 (8) (2) (5) 36 80 59 Q4/12 Supply, Gas logistics Power Other Q4/13 marketing and trading Better EconGas result mainly due to improved gas supply Continuing challenges in the gas storage market and higher costs in the gas transportation business
Slide 24: Gas and Power Key Performance Indicators
Gas and Power Key Performance Indicators Gas sales and trading volumes in TWh Q4/13 vs. Q4/12 136 129 118 Gas sales volumes down by 17% 85 86 mainly due to weak industry demand low power plant demand Gas trading volumes down by 3% Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Full quarter contribution of
Slide 25: Refining and Marketing Clean CCS EBIT
Refining and Marketing Clean CCS EBIT in EUR mn Q4/13 vs. Q4/12 (91) 22 145 16 92 Q4/12 Fuels Petrochemicals Marketing Q4/13 Considerably lower OMV indicator refining margin Better petrochemicals margins Improved marketing result due to cost savings 25 | OMV Group, Results January - December a
Slide 26: Refining and Marketing Key Performance Indicators
Refining and Marketing Key Performance Indicators Refining utilization rate in % Q4/13 vs. Q4/12 94 93 95 92 94 90 96 90 87 86 Overall refining utilization rate remained high Marketing sales volumes increased slightly Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Further filling station network West East opti
Slide 27: Key financial indicators
Key financial indicators Gearing ratio in % 30 26 15 15 12 Key financial principles Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Long-term gearing ratio target of ≤30% Payout ratio and DPS 1.20 1.25 Maintain a strong investment grade rating 1.00 1.10 35 Sustainable dividend policy: Long-term 32 32 29 payout
Slide 28: energize OMV update
energize OMV update David C. Davies, Deputy Chairman of the Executive Board and CFO OMV Aktiengesellschaft
Slide 29: energize OMV: +2% points ROACE increase in 2014 on track
energize OMV: +2% points ROACE increase in 2014 on track ROACE impact Date of Progress since status end of 2013 finalization program start Stabilize production in Austria and 2014 Romania Accelerate production growth in Tunisia Upstream 2014 and Pakistan Ongoing development and 2014 operational exce
Slide 30: Expected ROACE impact in 2014
Expected ROACE impact in 2014 Impact of energize OMV on ROACE in 2014 (in % points) Major achievements 2013: Target 2% Successful field redevelopment projects in Pakistan (Mehar and Latif) brought around ~4,000 boe/d by in 2014 end of 2013 ~0.5% to be finalized Cost efficiency program successful
Slide 31: Upstream – Key achievements 2013
Upstream – Key achievements 2013 Stabilize production in Romania Accelerate production growth in Ongoing development and and Austria Tunisia and Pakistan operational excellence in rest of world Facilities debottlenecked Accelerate South Tunisia Oil Growing contribution of cost ~2,000 boe/d fre
Slide 32: Downstream – Key achievements 2013
Downstream – Key achievements 2013 Reduce working capital Optimize marketing Improve refining Optimize G&P portfolio National stockholding Benefits of EUR 55 mn Benefits of EUR 93 mn ► Cost reduction for 2013: business in Austria: EUR 40 mn Turnaround sites: 100% of Petrobrazi yield EUR ~190 m
Slide 33: Exploration and Production
Exploration and Production Jaap Huijskes, Executive Board member responsible for E&P OMV Aktiengesellschaft
Slide 34: We deliver
We deliver Strong project pipeline World class exploration Clear growth path to 2016 and beyond Creating a sustainable business 34 | OMV Group, Results January - December and Q4 2013
Slide 35: E&P project update Q4/13
E&P project update Q4/13 Exploration only Exploration and Production Continuous strong project pipeline Wisting (>1bn boe) Rosebank ~550 mn boe under appraisal Wisting oil discovery FRD Madulari New FRDs FRDs Romania (Bacea, Barbuncesti, Calinesti, Preajba-Cartojani) Nawara ~550 mn boe und
Slide 36: Major projects under development
Major projects under development New ventures Exploration Appraisal Development Execution Production Peak Project Working Project Country Type 2P reserves Operated start production investments interest primary year mn boe kboe/d EUR mn % FRD Romania Oil/Gas 2013-2015 ~100 ~17 ~500-550 100.0 1 OP FRD
Slide 37: Major projects under appraisal
Major projects under appraisal New ventures Exploration Appraisal Development Execution Production Cumulative Working Project Country Type Operated start production interest primary year mn boe % FRD Romania Oil/Gas 2014-2017 200-250 100.0 1 OP FRD Austria Oil/Gas 2015 ~5 100.0 OP WoS 2 / CNS 3 Oil/
Slide 38: Our path to 400 kboe/d
Our path to 400 kboe/d Production kboe/d 2010 318 2011 288 Impacted by 2012 303 political Production 2013 288 unrest 1 Project Country Type 2 FID start Norway FRDs Romania Oil/Gas 2013-2015 Tunisia FRDs Austria Oil/Gas 2013-2015 Yemen Libya Gudrun Oil 2014 Austria/ Maari Growth Oil 2014 Roma
Slide 39: Exploration update Q4/13
Exploration update Q4/13 Exploration only Around the world: Exploration and Production Seismic: Wisting Central Bonna Wisting Main Bulgaria: ~7,700 km2 3D seismic (finished in January Cambo-5 2014) Newly secured acreage: Gabon country entry (OMV share 10-30%) Mbeli – 10% – 1 well, 3D seismic H
Slide 40: Drilling up to 17 high impact wells (2014/15)
Drilling up to 17 high impact wells 1 (2014/15) Exploration only Spud Working Well Country Basin/Block Type 2 Operated Exploration and Production date 3 interest Atlantis High impact well Apollo Jupiter Byrkje NO Barents Sea E H1/14 20% n NO Byrkje Wisting Central W Padouk Deep GA Gabon offshore E H
Slide 41: 2014 production guidance confirmed
2014 production guidance confirmed Pakistan: Additional production from Mehar and Latif New Zealand: Resumed production following the successful repair of Raroa 2014 production guidance Norway: Gullfaks production as per plan; 320-340 kboe/d Gudrun to start production in Q1/14 1 Libya back
Slide 42: Outlook
Outlook Gerhard Roiss, Chairman of the Executive Board and CEO OMV Aktiengesellschaft
Slide 43: Outlook 2014
Outlook 2014 Oil price above USD 100/bbl G&P markets remain highly challenging Refining margins remain under pressure Marketing volumes remain under pressure Production in the range of 320-340 kboe/d CAPEX EUR ~3.9 bn (~80% E&P) E&A 1 expenditure up to EUR ~700 mn p.a. 1 Exploration and Appraisal 43
Slide 44: Transforming OMV: Profitable growth
Transforming OMV: Profitable growth Value generation – ROACE target 1st wave 2nd wave Execute projects and Portfolio shift from increase value of up- down to upstream and downstream portfolio 44 | OMV Group, Results January - December and Q4 2013
Slide 45: 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 46: OMV Aktiengesellschaft
OV OMV OMV Aktiengesellschaft OuvV Moving more. Moving the future. O M V