Slide 1: 2009 Second Quarter Results
2009 Second Quarter Results > MOL GROUP
Slide 2: Disclaimer
Disclaimer "This "T presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, ca
Slide 3: Strong recovery in Q2 versus Q1 2009
Strong recovery in Q2 versus Q1 2009… IFRS (HUF bn) Q1 2009 Q2 2009 Ch % EBITDA 107.6 124.0 15 EBITDA excluding special items* 93.6 92.9 - Operating profit 67.4 78.8 17 Operating profit excluding special items* 53.4 47.7 (11) Net financial expenses/(gain) 147.1 (103.6) n.a. Income from associates (1
Slide 4: Stable EBITDA, strong cash flow in H1
…stable EBITDA, strong cash flow in H1 IFRS (HUF bn) H1 2008 H1 2009 Ch % EBITDA 224.9 231.7 3 EBITDA excluding special items* 218.5 186.5 (15) Operating profit 156.4 146.3 (6) Operating profit excluding special items* 150.0 101.1 (33) Net income 179.7 63.7 (65) Net income excluding special items* 1
Slide 5: Strategic achievements in Q2 2009
Strategic achievements in Q2 2009 ► Acquisition of 10% stake in Pearl Petroleum Company ► Strengthening position in the Middle-East ► Increase reserve base ► Cash-saving acquisition - Utilisation of treasury shares ► Nabucco: signing of Intergovernmental Agreement in Ankara ► Solid legal and politic
Slide 6: INA consolidation
INA consolidation MOL Group with equity method Asset MOL Group in million HUF consolidated INA INA Group valuation total Property, Plant & Equipment 1,463,201 683,055 79,891 2,226,148 Goodwill 77,632 112,669 190,300 Investments 433,359 -354,797 78,562 Other non-current assets 177,946 69,349 247,296
Slide 7: Organic CAPEX in line with strict target
Organic CAPEX in line with strict target CAPEX by segments (HUF bn) 100 96 Pearl acquisition paid by treasury shares ► Acquisition cost of a 10% stake and 80 66 68 the work program CAPEX of Pearl 59 60 (HUF 71.9 bn) paid by treasury 36 35 40 13 13 shares 20 10 3 0 ► We maintain our organic capex tar
Slide 8: Global recession has considerable negative effect on gas consumption
The global recession has considerable negative effect on gas consumption especially in the segment of industrial customers 15% decrease in gas sales in Hungary in H1 2009 vs. H12008 Delivered gas volumes on exit points by FGSZ (mcm) 1) Remarks 2 000 -8% Gas consumption in H1 2009 of 5,981 mcm was do
Slide 9: Upstream – weaker Q2 profit after historic high Q1
Upstream – weaker Q2 profit after historic high Q1 Exploration & Production – in HUF bn Q1 2009 Q2 2009 Ch. % EBITDA 56.3 28.1 (50) Operating profit/(loss) 46.0 15.2 (67) Average realised crude oil and condensate price (USD/bbl) 100 80 60 44% Main profit drivers 40 20 - Significant, 25% decline in n
Slide 10: Upstream – strong H1 result
Upstream – strong H1 result Exploration & Production – in HUF bn H1 2008 H1 2009 Ch. % EBITDA 133.5 84.4 (37) EBITDA excluding Szőreg-1 field disposal 68.2 84.4 24 Operating profit/(loss) 119.8 61.2 (49) Operating profit/(loss) excluding Szőreg-1 field disposal 54.4 61.2 12 Average realised crude oi
Slide 11: Downstream – slight demand decrease in CEE region in H1
Downstream – slight demand decrease in CEE region in H1 Demand Gasoline Diesel Total (H1/H1) Hungary (0.1%) 2.4% 1.5% 2.5 Slovakia (10.1%) (13.4%) (12.3%) 8.0 Other 2.2% (2.4%) (1.0%) Total CEE 1.4% (2.4%) (1.3%) -5.2 -5.0 -10.1 ► Significant GDP decline was realized in -13.4 the region with over 6%
Slide 12: Downstream – stable volumes on more profitable markets
Downstream – stable volumes on more profitable markets MOL sales Hungary (kt) MOL sales Slovakia (kt) 1 400 1 400 +3,4% 1 200 1 200 1 000 1 000 800 800 +6,3% +2,8% 600 +0,1% 600 -14,0% 400 +1,5% +4,0% 400 -13,6% -14,3% -9,9% 200 200 -11,0% -9,0% 0 0 Q1 2008 Q1 2009 Q1 2008 Q1 2009 Q2 2008 Q2 2009 Q2
Slide 13: Downstream – positive CCS EBIT despite poor environment
Downstream – positive CCS EBIT despite poor environment Refining & Marketing – in HUF bn Q1 2009 Q2 2009 Ch. % EBITDA 24.6 63.2 157 Operating profit/(loss) 4.7 41.3 779 CCS-based operating profit (6.0) 5.5 n.a. Average realised crack spread (USD/t) 100 Main profit drivers 80 - 33% decrease in averag
Slide 14: Downstream – H1 results reflect weak environment
Downstream – H1 results reflect weak environment Refining & Marketing – in HUF bn H1 2008 H1 2009 Ch. % EBITDA 144.1 87.7 (39) Operating profit/(loss) 109.1 46.0 (58) CCS-based operating profit 81.0 (0.5) n.a. Average realised crack spread (USD/t) 100 80 Main profit drivers 61% 60 - Halving crack sp
Slide 15: Petchem demand
Petchem demand Total polymer sales (k tons) Total polymer sales (ktons) PP HDPE LDPE 2 500 2007 2008 2009 2 250 2 000 1 750 1 500 Volume (kt) 1 250 1 000 750 500 250 0 Jan- Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan- Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan- Feb Mar Apr May Jun 07 08 09
Slide 16: Petchem sales
Petchem sales ► Overall polymer sales of MOL Sales by segment Petchem was 6% lower in H1 2009 vs. H1 2007 H1 2008 H1 2009 H1 2008,… 100% ►…however segments performance 90% 80% varied: 70% ►significantly lower sales in 60% automotive (-35%), construction 50% (-30%) and industrial packaging 40% (-18%)
Slide 17: Petrochemicals – further margin decline, volume decrease
Petrochemicals – further margin decline, volume decrease Perocemicals – in HUF bn Q1 2009 Q2 2009 Ch. % EBITDA 1.0 (4.6) n.a. Operating profit/(loss) (3.7) (9.3) n.a. Naphta price (USD/t) 1000 800 600 31% 400 Main profit drivers 200 - 12% decline in petrochemical margin 0 Q1 2009 Q2 2009 - Decreased
Slide 18: Petrochemicals – H1 results
Petrochemicals – H1 results Perocemicals – in HUF bn H1 2008 H1 2009 Ch. % EBITDA (0.8) (3.6) n.a. Operating profit/(loss) (11.1) (13.0) n.a. Naphta price (USD/t) 1000 800 53% 600 400 Main profit drivers 200 - 15% lower petrochemical margin 0 H1 2008 H1 2009 - Decreased volumes on maintenance shut-d
Slide 19: Outlook for 2009
Outlook for 2009 External environment: ► Stabilising crude price, but ► Weakening natural gas price (based on previous 9-months average of certain oil product quotation) ► Challenging refinery environment - volatile crack spreads, but stronger diesel crack spread is expected ► Poor integrated petche