Mol Hungarian Oil & Gas Plc Class A · BET:MOL
Mol Hungarian Oil & Gas Plc Class A — MOL Group — Investor Presentation (February 2016)
75 slides from Mol Hungarian Oil & Gas Plc Class A's investor presentation, February 2016
Slide 1: MOL Group Investor Presentation February 2016
MOL GROUP INVESTOR PRESENTATION FEBRUARY 2016
Slide 2: This page was left blank intentionally
This page was left blank intentionally 2
Slide 3: Agenda
AGENDA 1 Investment case 2 Q4 2015 recap 3 Downstream overview 4 Upstream overview 5 Financials and other 6 Appendix 3
Slide 4: Investment case
INVESTMENT CASE
Slide 5: Fundamental building blocks in place
FUNDAMENTAL BUILDING BLOCKS IN PLACE KEY TARGETS MET OR EXCEEDED 2015 TARGET 2015 DELIVERY RESILIENT USD 2.2BN USD GROUP CLEAN CCS EBITDA INTEGRATED (upgraded) 2.5BN BUSINESS MODEL GROUP CAPEX (ORGANIC) USD 1.3BN USD 1.26BN (reduced) HIGH QUALITY, LOW-COST FCF GENERATION* POSITIVE +850MN ASSET BASE
Slide 6: MOL Group in brief
MOL GROUP IN BRIEF INTEGRATED OIL & GAS COMPANY Upstream Downstream Gas Midstream CEE International R&M Retail Petchem CAPITAL MARKETS OVERVIEW BUSINESS/ASSETS OVERVIEW Tickers: MOL HB; MOLB.BU Countries of operation: 33 Main listings: Budapest, Warsaw Number of employees: 26,000 Number of shares: 1
Slide 7: Mid-term focus/strategy
MID-TERM FOCUS/STRATEGY SUSTAIN STRONG EBITDA, FCF GENERATION AND DIVIDENDS STRONG BALANCE SHEET AND AMPLE LIQUIDITY RESILIENT INTEGRATED BUSINESS MODEL ALLOWED MOL TO ABSORB EXTERNAL SHOCKS, GENERATE STRONG CASH FLOWS (AND FCF) CONFIDENT TO BE ABLE TO GENERATE AT LEAST USD 2.0BN ANNUAL GROUP EBITDA
Slide 8: Strong balance sheet and liquidity
STRONG BALANCE SHEET AND LIQUIDITY MAJORITY OF THE STRONG FCF IN 2009- AVAILABLE LIQUIDITY 2015 WAS INVESTED INTO DELEVERAGING EUR 3.4bn 3.5 ROBUST BALANCE SHEET TO WITHSTAND 3.0 0.4 0.2 EXTREME OIL MACRO SCENARIOS 2.5 EUR bn 2.0 SUBSTANTIAL (EUR 2.8BN) LIQUIDITY, 1.5 2.8 EVEN AFTER 2015 BOND REPAYM
Slide 9: At least USD 2.0bn Group EBITDA in 2016
AT LEAST USD 2.0BN GROUP EBITDA IN 2016... RESILIENT, INTEGRATED BUSINESS MODEL TO ABSORB EXTERNAL SHOCKS CLEAN-CCS EBITDA (USD MN) 2 970 2 739 2 524 2 304 2 477 2 163 719 22000 000+ 1 926 2 407 1 854 1 594 1 167 1 650 682 874 350 669 697 345 428 258 263 253 213 -214 -215 -250 -131 -105 -257 2010 20
Slide 10: ...At conservative macro assumptions
...AT CONSERVATIVE MACRO ASSUMPTIONS EBITDA SENSITIVITY TO KEY EXTERNAL DRIVERS Sensitivity1 Est. Clean CCS EBITDA % of Group impact (USD mn) EBITDA 2015 KEY MACRO ASSUMPTIONS +/- 50 USD/Mcm 5Y ~10 0.5% 2014 2015 2016E Gas Price (NCG2) average Brent crude 98.9 52.4 35-50 97 (USD/bbl) +/- 10 USD/bbl
Slide 11: Organic capex trimmed to up to USD 1.3bn
ORGANIC CAPEX TRIMMED TO „UP TO USD 1.3BN” CAPEX VS OPERATING CASH FLOW (USD MN) Operating Cash flow Inorganic Group Organic US Organic DS Organic GM Organic C&O (incl. intersegment) 2,500 2 268 2,000 579 1 599 1 572 11 1,500 1 368 302 1,300 132 1 198 1 211 591 877 0 164 1,000 556 695 709 514 592 50
Slide 12: Sustainable FCF generation
SUSTAINABLE FCF GENERATION SOURCES AND APPLICATIONS OF CASH (USD MN) 180 984 -549 284 830 666 407 717 579 197 350 310 205 270 200 11 421 2 970 350 456 420 302 2 739 132 2 524 0 2 477 164 2 308 2 183 2 000 1 588 1 689 1 236 1 211 1 258 1 300 1 034 2010 2011 2012 2013 2014 2015 2016E Clean CCS EBITDA
Slide 13: Downstream: benign macro likely to remain
DOWNSTREAM: BENIGN MACRO LIKELY TO REMAIN BUT NOT AS SUPPORTIVE AS IT WAS IN 2015 OUTSTANDING 2015 MACRO UNLIKELY TO REPEAT, YET ABOVE MID-CYCLE REFINING AND PETCHEM MARGINS MAY SUSTAIN IN 2016-18 (@ USD 35-50/BBL OIL PRICES) Key risk: full petchem normalization, no seasonal gasoline strength Key up
Slide 14: Over USD 1bn free cash flow delivered in 2015
OVER USD 1BN FREE-CASH FLOW DELIVERED IN 2015 ADDED USD 210MN FROM INTERNAL IMPROVEMENT ALREADY NEXT DOWNSTREAM PROGRAM (NXDSP) – USD 500MN EBITDA UPLIFT DELIVERY ON TRACK OVER USD 1BN FCF FROM DS 1,650 (OVER 1.3BN EXCLUDING GROWTH CAPEX) 570 1,330 640 USD ~500MN EBITDA 160 ~140 874 210 IMPROVEMENT
Slide 15: E&P: significantly reducing opex & capex
E&P: SIGNIFICANTLY REDUCING OPEX & CAPEX TO ALIGN COST BASE WITH CURRENT OIL PRICES TOTAL OPEX EX-ROYALTY PRODUCTION (MBOEPD) CAPEX (USD mn) (USD mn) rest CEE inorganic ~-60% - 80-100 ~105-110 104 104 organic 1,410 98 520 26 23 25 21 830 688 119 0 500-600 80 79 81 890 688 711 77 2013 2014 2015 2016
Slide 16: E&P: aiming for self-funding at USD 35/bbl
E&P: AIMING FOR SELF-FUNDING @ 35 USD/BBL EBITDA, CAPEX & CASH FLOWS (USD MN) Opex cut vs. the 2015 base macro impact @ 50 USD/bbl oil price ~80-100 Potential shortfall caused by low oil price environment (35 – 50 USD bbl vs. ~50 USD/bbl in 2015) ~30-40% adjustment macro impact @ 35 of organic CAPEX
Slide 17: Increasing distribution to shareholders
INCREASING DISTRIBUTION TO SHAREHOLDERS RISING TREND IN DIVIDEND STREAM AND DPS LIKELY TO CONTINUE IMPROVING YIELDS - GROWING IMPORTANCE IN INVESTMENT STORY ONE OF THE VERY FEW INTEGRATEDS WHO CAN INCREASE DPS IN 2015.... ...AND NOT ONLY SUSTAIN, BUT GROW AND COMFORTABLY COVER DIVIDENDS FROM CASH FL
Slide 18: Simpler shareholders structure
SIMPLER SHAREHOLDERS STRUCTURE AS OF 31 DECEMBER 2015, BUT ADJUSTED FOR THE MAGNOLIA DECISION DANA GAS SOLD ITS STAKE INCREASING FREE FLOAT THE 6M SHARES AT MAGNOLIA WILL MIGRATE TO TREASURY SHARES IN MAR CH 2016 MOL Investment Kft. (treasury shares) 7,2%* Domestic private investors 4,8% Domestic in
Slide 19: SD & HSE awareness and commitment
SD & HSE AWARENESS AND COMMITMENT NEW „SUSTAINABILITY PLAN 2020” GOVERNANCE SD PLAN 2020 Sustainable Development Committee of MAIN OBJECTIVE: achieve and maintain an Board of Directors since 2006; Group CEO internationally acknowledged leading position permanent member (top 15%) in sustainability pe
Slide 20: Q4 2015 recap
Q4 2015 RECAP Strong underlying profitability in Q4
Slide 21: Integrated business model worked in Q4 too
INTEGRATED BUSINESS MODEL WORKED IN Q4 TOO WITH BEST EVER Q4 DELIVERY IN DOWNSTREAM KEY GROUP FINANCIALS (HUF BN) SEGMENT CLEAN CCS EBITDA (HUF BN) +2% -40% +1% -26% +5% -23% +494% -551% 258 199 199 195 147 147 152 155 12 154 91 151 147 139 19 15 147 74 106 -69 65 43 46 -412 -8 -4 -17 CCS EBITDA Net
Slide 22: Downstream drives annual EBITDA growth
DOWNSTREAM DRIVES ANNUAL EBITDA GROWTH AS WELL AS THE SEASONAL RETREAT QOQ GROUP EBITDA QoQ (HUF bn) COMMENTS 2,6 Downstream 198.7 Seasonally weaker in Q4 37,6 Yet brought in its strongest-ever Q4 EBITDA... 6,6 8,3 157.5 …hence keeping the 4,5 Group-level EBITDA flat vs. Q4 2014 Downstream is the en
Slide 23: Strong underlying profitability in Q4
STRONG UNDERLYING PROFITABILITY IN Q4 WITH GOOD OPERATIONAL PROGRESS ACROSS SEGMENTS FINANCIAL Strong Clean CCS EBITDA delivery of HUF 147bn (USD 515m) in Q4 2015 MOL significantly beat its USD 2.2bn 2015 Clean CCS EBITDA target (FY 2015 at USD 2.5bn) Net operating cash flow (USD 2.11bn) exceeded or
Slide 24: Upstream impairments and write-offs
UPSTREAM IMPAIRMENTS AND WRITE-OFFS OIL PRICE ASSUMPTIONS AND SOME EVENT-DRIVEN ONE-OFFS SUMMARY OF IMPAIRMENTS (USD mn) UNITS AFFECTED BOOK VALUE BEFORE TEST IMPAIRED AMOUNT BOOK VALUE AFTER TEST* Akri Bijeel 453 453 0 Cameroon 89 89 0 UK North Sea 947 755 192 CEE 2,547 305 2,242 Other internationa
Slide 25: Downstream: Q4 results exceed base by 43%
DOWNSTREAM: Q4 RESULTS EXCEED BASE BY 43% PRIMARILY DRIVEN BY HIGHER VOLUMES CLEAN CCS EBITDA QoQ (HUF bn) COMMENTS 153 Seasonal impacts drive 8 performance: 25 13 10 13 106 Refinery margin: -2 53 4 USD/bbl; IM: -47 EUR/t 12 42 38 64 Weaker volumes (mainly in R&M and retail) 75 Modification: CCS dri
Slide 26: E&P: higher volumes offset price impact
E&P: HIGHER VOLUMES OFFSET PRICE IMPACT FX, LOWER EXPLORATION EXPENSES HELP US EBITDA QoQ (HUF bn) COMMENTS 0 44 Higher volumes 43 1 (Hungary, UK) offset 7 7 1 lower prices Higher than usual DD&A ex-one-offs: 1) well write- 78 offs in Pakistan, Oman; 2) higher UK DD&A (Cladhan + year-end reconciliat
Slide 27: This page was left blank intentionally
This page was left blank intentionally 27
Slide 28: Downstream overview
DOWNSTREAM OVERVIEW
Slide 29: CEE stronghold
CEE STRONGHOLD RECORD HIGH RESULTS DELIVERED IN 2015 DEEP DOWNSTREAM INTEGRATION ENSURES EXTENDED MARGIN CAPTURE IN LANDLOCKED MARKETS PETCHEM & RETAIL ACCOUNTED FOR ~50% OF HISTORIC HIGH USD 1.65BN CLEAN CCS DS EBITDA PEAK MARGINS MAY RETREAT FROM 2015 LEVELS… … TO BE PARTLY OFF-SET BY NXDSP MEASUR
Slide 30: Over USD 1bn free cash flow delivered in 2015
OVER USD 1BN FREE-CASH FLOW DELIVERED IN 2015 ADDED USD 210MN FROM INTERNAL IMPROVEMENT ALREADY NEXT DOWNSTREAM PROGRAM (NXDSP) – USD 500MN EBITDA UPLIFT DELIVERY ON TRACK OVER USD 1BN FCF FROM DS 1,650 (OVER 1.3BN EXCLUDING GROWTH CAPEX) 570 1,330 640 USD ~500MN EBITDA 160 ~140 874 210 IMPROVEMENT
Slide 31: Deep downstream integration
DEEP DOWNSTREAM INTEGRATION GUARANTEES EXTENDED MARGIN CAPTURE IN LANDLOCKED MARKETS DOWNSTREAM INTEGRATION (FUELS)(1) 23% 45% 89% Refining 79% 32% captive Retail 39% market2 own 11% market Petrochem KEY STRENGTHS HIGHLIGHTS & FIGURES Deeply integrated portfolio Clean CCS DS EBITDA Over 18 Mtpa refi
Slide 32: DS performance well above peers in 2015
DS PERFORMANCE WELL ABOVE PEERS IN 2015 KEY REFINING ASSETS IN TOP QUARTILE REFINERY NELSON COMPLEXITY OF CLEAN CCS-BASED DS UNIT EBITDA2 THE PEER GROUP1 (USD/BBL) 16 20,0 6.1 Mtpa Average 18,0 Average 14 8.1 Mtpa 16,0 MOL Group 12 MOL excl. INA 4.5 Mtpa 14,0 10 2.2 Mtpa 12,0 NCI 8 10,0 6 8,0 4 6,0
Slide 33: Key enablers of delivering Downstream 2017
KEY ENABLERS OF DELIVERING DOWNSTREAM 2017 STRATEGIC GOALS Next Normalized Wholesale Retail DS CCS GOALS Downstream free cash 2017 EBITDA Program fuel volume fuel volume flow USD 150% 5.4 Bnlpa USD ~900 USD 500mn of own mn 1.3 - 1.4 bn CCS EBITDA production sales improvement PILLARS ASSETS MARKET PE
Slide 34: USD 350mn asset & efficiency improvement
USD 350MN ASSET & EFFICIENCY IMPROVEMENT ADDITIONAL USD 150MN TARGETED FROM GROWTH PROJECTS EFFICIENCY IMPROVEMENT GROWTH PROJECTS’ CONTRIBUTION 2 1 (CUMULATIVE, MN USD) (MN USD) 20% 350 Production 80% 1. Availability & USD ~60MN maintenance DELIVERED IN 2015 cost revenue 2. Production flexibility a
Slide 35: Production roadmap
PRODUCTION ROADMAP 1 TARGETS UPTIME INCREASE, ENERGY EFFICIENCY & YIELD IMPROVEMENT A 97% 96,0% 96% HSE 95% 94,7% Operational Availability Optimize maintenance costs and increase operational 94% availability of MOL Group assets 2014 2015 2016 2017 2018 Maintenance Efficiency Move up one quartile ene
Slide 36: Growing contribution through volume increase
GROWING CONTRIBUTION THROUGH VOLUME INCREASE 1 B CENTRAL REGION: SALES AND MARGIN GROWTH 1 Sales volume growth 2 Margin revenue growth TRADING BELT: 150% SALES TO NEW MARKETS / NEW CUSTOMERS OWN PRODUCED FUELS 3 Stabilize market +50% 4 Extend market reach ADDITIONAL FOCUS PRODUCTS Focus on aromatics
Slide 37: Conceptual change in retail
CONCEPTUAL CHANGE IN RETAIL 1 TO IMPROVE FINANCIAL CONTRIBUTION C GROUP RETAIL NETWORK RETAIL TARGETS Growing number of retail stations (network optimization and M&A): 316 2014 1 750 # of fuel stations Slovnaft Czech Republic Slovnaft Slovakia 2015 1 894 253 33 2017 > 2 000 Austria 364 Hungary 202 S
Slide 38: Boost retail cash flow contribution
BOOST RETAIL CASH FLOW CONTRIBUTION C 1 2 THROUGH NETWORK GROWTH AND NON-FUEL MARGIN GROWTH RETAIL FREE CASH FLOW GENERATION BY 2017 (MN USD)1 EBITDA / FS 119 123 (th USD) - ~20% local currency weakening vs USD… - … partly off-set by 4% ~60 ~30-50 growth of main retail markets ~40 20 280 223 230-250
Slide 39: Deeply integrated petrochemical portfolio
DEEPLY INTEGRATED PETROCHEMICAL PORTFOLIO PETCHEM VALUE CHAIN PP CAPACITIES IN EUROPE (2015 KTPA) 420 kT HDPE LyondellBasell 2390 Borealis 1885 Total Petrochemicals 1120 Naphtha Gasoil SABIC Europe 950 285 kT LDPE INEOS 755 LPG Braskem 545 MOL Group 535 SIBUR 500 REFINING PETCHEM 535 kT PP Repsol 49
Slide 40: Extending the petrochemicals value chain
EXTENDING THE PETROCHEMICALS VALUE CHAIN 2 TO INCREASE PROFITABILITY LDPE4 Butadiene Synthetic rubber New 220 ktpa capacity New 130 ktpa capacity Entering the synthetic LDPE unit replaces 3 old Butadiene Extraction Unit rubber business with a ones at Slovnaft (BDEU) at the site of MOL Japanese joint
Slide 41: ~15% seaborne crude supply to Danube refinery in 2015
~15% SEABORNE CRUDE SUPPLY TO DANUBE REFINERY IN 2015 FIRST CARGO TO BE PROCESSED IN BRATISLAVA IN 2016 ADRIATIC PIPELINE ACCESS ESTABLISHED The reliable operation of Increased Friendship 1 pipeline restored pipeline capacity: 6Mtpa = SN Potentially able to fully cover Danube and Bratislava refineri
Slide 42: Upstream overview
UPSTREAM OVERVIEW
Slide 43: Aiming for self-funding operations
AIMING FOR SELF-FUNDING OPERATIONS EVEN AT USD 35/BBL OIL PRICE REVISED PORTFOLIO TO DELIVER ~105-110 MBOEPD IN 2016-17 AND ~110-115 MBOEPD IN 2018 SUCCESSFULLY REVERSED PRODUCTION DECLINE VIA PRODUCTION INTENSIFICATION IN HIGH-MARGIN CEE DIRECT PRODUCTION COST EXPECTED TO BE AT USD 6-7/BBL THE BULK
Slide 44: Production activities in 8 countries
PRODUCTION ACTIVITIES IN 8 COUNTRIES RUSSIA Reserves: 72 MMboe CEE TOTAL Production: 7 mboepd Croatia, Hungary KAZAKHSTAN Reserves: 288 MMboe Reserves: 60 MMboe Production: 79 mboepd PAKISTAN o/w CEE offshore Reserves: 11 MMboe Reserves: 14 MMboe Production: 7 mboepd Production: 12 mboepd OTHER INTE
Slide 45: Revised portfolio with ~105-110 mboepd in 2016-17
REVISED PORFOLIO WITH ~105-110 MBOEPD IN 2016-17 110-115 MBOEPD IN 2018 MID-TERM PRODUCTION PROFILE STABLE CONTRIBUTION FROM (MBOEPD) HIGH-MARGIN CEE OPERATIONS 120 ~110-115 Positive cash generation even ~105-110 ~105-110 104 at USD 30/bbl oil price 100 98 Reversed production decline and enhanced re
Slide 46: Significantly reduced opex and capex
SIGNIFICANTLY REDUCED OPEX AND CAPEX TO ALIGN COST BASE WITH CURRENT OIL PRICES TOTAL OPEX EX-ROYALTY (USD mn) CAPEX (USD mn) inorganic - 80-100 1,410 organic 520 ~-15-30% 830 688 119 0 500-600 890 688 711 2015 2016 target 2013 2014 2015 2016 target Total cost reduction of USD 80 -100 mn ~15-30% org
Slide 47: Exploration portfolio expanded in Norway
EXPLORATION PORTFOLIO EXPANDED IN NORWAY EXPLORATION POTENTIAL (RRP1) MMBOE 130 160 95 1,220 835 CEE CIS WEU (North Sea) MEA Exploration portfolio and resource base were enlarged in 2015 by additions in Norway and Pakistan Still noteworthy potential in CEE nearfield opportunities 1 Recoverable resou
Slide 48: CEE: positive cash flows, rising on-shore production
CEE: POSITIVE CASH FLOWS, RISING ON-SHORE PRODUCTION ON THE BACK OF COMPREHENSIVE PRODUCTION OPTIMIZATION PROGRAM Hungary CRO offshore HUNGARY AND CROATIA (117+172 MMBOE) CRO onshore Employed a systematic approach to identify 100 0% improvement potential in both surface and subsurface 80 CAGR ex Pro
Slide 49: CEE: production decline reversed in 2015
CEE: PRODUCTION DECLINE REVERSED IN 2015 WITH CEE OIL PRODUCTION UP BY 12% YEAR ON YEAR HISTORY OF PRODCUTION TOTAL HYDROCARBON OIL PRODUCTION SINCE ACQUISITION OF INA PRODUCTION (MBOEPD) (MBPD) Crude oil Total 60 -4% -5% +5% 44 12 -1% 50 42 11 40 40 10 Hungary 38 30 9 36 20 8 34 10 32 7 0 30 6 2009
Slide 50: CEE: comprehensive production optimization
CEE: COMPREHENSIVE PRODUCTION OPTIMIZATION WELL PERFORMANCE IMPROVEMENT ALS optimisation GOALS Field development Fracking strategy on Maximize extraction of portfolio level - Well workovers profitable barrels reserve transfer Well intervention Stabilise production in Hungary RESERVOIR PERFORMANCE Re
Slide 51: Pakistan: 15+ years of successful operation
PAKISTAN: 15+ YEARS OF SUCCESSFUL OPERATION HIGHLY SUCCESSFUL TAL DEVELOPMENT WITH EXPLORATION IN NEARBY BLOCKS HIGHLIGHTS AND KEY FOCUS AREAS (16 MMBOE) Operator of the TAL block 30 km from the border of Afghanistan, currently with 78 mboepd production on 100% basis 10 discoveries (7 operated) from
Slide 52: KRI - Shaikan: world class oil discovery
KRI - SHAIKAN: WORLD CLASS OIL DISCOVERY DEVELOPMENT DEPENDS ON REGULARITY AND AMOUNT OF PAYMENTS SHAIKAN HIGHLIGHTS (GROSS FIGURES) World class oil discovery with 639 MMboe of 2P reserves identified by the operator - commissioned CPR in October 2015 Ongoing commercial production from two facilities
Slide 53: CIS: field development of low-cost Baitugan
CIS: FIELD DEVELOPMENT OF LOW-COST BAITUGAN WITH STABLE CASH FLOW GENERATION EVEN AT CURRENT OIL PRICES RUSSIA - Baitugan (72 MMBOE) A shallow, compact field with developed infrastructure ensures low unit costs thus stable cash-flow generation Ongoing intensive development program on Baitugan block
Slide 54: North Sea, UK: visible contribution in 2016
NORTH SEA, UK: VISIBLE CONTRIBUTION IN 2016 WITH AN ONGOING COMPREHENSIVE VALUE OPTIMIZATION PLAN NORTH SEA, UK (26 MMBOE) First oil achieved on Cladhan in Dec 2015 Drilling programme commenced successfully on Scott Scolty & Crathes on track with first oil anticipated first half of 2017 Operator exp
Slide 55: Norway: a new exploration hub
NORWAY: A NEW EXPLORATION HUB WITH 750 MMBOE UNRISKED PROSPECTIVE RESOURCES INCREASING FOOTHOLD IN THE NCS Entered Norway in 2015, acquiring 100% ownership in Ithaca Petroleum Norge – a pre-qualified operator Further extended presence through the farm-in to new licenses and the 2015 APA round awards
Slide 56: Financial overview
FINANCIAL OVERVIEW
Slide 57: Operating cash flows cover organic capex
OPERATING CASH FLOWS COVER ORGANIC CAPEX CONSERVATIVE FINANCIAL POLICY AND STRATEGY CAPEX VS OPERATING CASH FLOW Operating Cash flow Organic US Organic GM Inorganic Group Organic DS Organic C&O (incl. intersegment) 2 500 2 268 2 000 579 1 599 1 572 11 1 500 1 368 1 211 302 1 300 591 132 1 198 877 0
Slide 58: Strong balance sheet and liquidity
STRONG BALANCE SHEET AND LIQUIDITY DRAWN VERSUS UNDRAWN FACILITIES AVAILABLE LIQUIDITY (EUR MILLION) Total Outstanding Undrawn facilities 3.5 EUR 3.4bn Medium term loans Long term loans (multilaterals) Bonds Hybrid 0.4 6 000 Outstanding short term loans 3.0 0.2 573 EUR bn 2.5 610 4 000 2782 2.0 EUR
Slide 59: Sufficient liquidity for acquisitions
SUFFICIENT LIQUIDITY FOR ACQUISITIONS FROM DIVERSIFIED FUNDING SOURCES AVERAGE MATURITY OF 2.62 YEARS 2500 Senior Unsecured Bonds Reported cash&cash equivalents Long term loan (multilaterals) 2000 Medium term loan Undrawn facilities 1500 1424 EUR M 1000 110 38 500 727 750 38 624 522 459 0 38 54 20 0
Slide 60: Credit rating profile
CREDIT RATING PROFILE ABOVE SOVEREIGN RATING AT FITCH, ONE NOTCH BELOW AT S&P HISTORICAL FOREIGN LONG TERM FFO/DEBT RATINGS 45% MOL, S&P Hungary, S&P MOL, Fitch Hungary, Fitch 40% A intermediate 35% A- 30% BBB+ 25% significant BBB 20% 15% aggressive BBB- 10% BB+ 5% BB 0% 2010 2011 2012 2013 2014 KEE
Slide 61: Key items of taxation
KEY ITEMS OF TAXATION HUNGARY CIT TAX RATE IS 19% PROFIT BASED ’ROBIN HOOD’ WITH AN IMPLIED TAX RATE OF 22% only energy related part of the profit affected (~70%), nameplate tax rate is 31% only the Hungarian operation of certain companies are affected ( i.e: MOL Plc., while gas transmission (FGSZ)
Slide 62: Executive incentive schemes
EXECUTIVE INCENTIVE SCHEMES ON THE TOP LEVEL, MORE THAN TWO THIRDS OF TOTAL REMUNERATION IS VARIABLE AND PERFORMANCE DRIVEN SHORT TERM INCENTIVES Maximum opportunity between 0.85x and 1x of base salary depending on executive Pay-out linked to yearly performance based on financial, operational and in
Slide 63: This page was left blank intentionally
This page was left blank intentionally 63
Slide 64: Appendix
APPENDIX
Slide 65: North Sea region UK & Norway
NORTH SEA REGION UK & NORWAY North Sea (UK) – Entry in 2014 Norway – Entry in 2015 Operating Other Blocks W.I. shareholder partner(s) Dana (21%), Nexen Scott 22% Apache (10%), (42%) Maersk (5%) Nexen Endavour Rochelle 15% (41%) (44%) Enquest Broom 29% Ithaca (8%) (63%) Cladhan 33% TAQA (65%) Sterlin
Slide 66: MOL's assets in Kurdistan Region of Iraq
MOL’S ASSETS IN KURDISTAN REGION OF IRAQ ENTRY IN 2007 AMONGST THE FIRST ONES Block W.I. Fully diluted W.I. Operator S haikan: commercial p r oduction star ted, 1st ex p ort cargo in jan 2 014 Shaikan 20% 13.6% GKP (75%) 6.7/9.2/13.3 billion barrels STOIIP Khor Mor 10% 10% estimated for Low/Best/Hig
Slide 67: Structure of production sharing contract
STRUCTURE OF PRODUCTION SHARING CONTRACT SIMPLIFIED PSA SCHEME (SHAIKAN) Oil produced Royalty Oil 10% of total Crude oil 40% Available crude Oil Cost oil Total Profit Oil Recovery oil Based on ”R” factor (Op. expl. and appr. costs Contractor’s profit oil share Government Contractor’s share GKP MOL T
Slide 68: Kazakhstan
KAZAKHSTAN SEES : ee Tinie Se 3 | | I~ > morenour me Ongoing 3D seismic processing — bess leg \ Kazakhstan fs ail pipeline \ Q1 2016 A Drilled exploration well Gas pipeline | | [FE] mot croup block A Discovery and appraisal well tested in 2015 |. | MOL Group block (exit planned) A Ongoing exploratio
Slide 69: Russia
RUSSIA MATJUSHKINSKY BAITUGAN 69
Slide 70: Pakistan
PAKISTAN TSE I a0 = SE SSS 5) MOL Group exploration licence (bold if operated) Discovery well drilled in 2015 > MOLGROUP i MOL Group existing dev. & prod. lease Exploration well drilled in 2015 Pakistan | MOL Group planned dev. & prod. lease Development well drilled in 2015 Q1 2016 S MOL Group licen
Slide 71: MOL Group specific refinery margins
MOL GROUP SPECIFIC REFINERY MARGINS 10 9.4 MOL Group refinery margin 8.8 8.6 9 8.2 8.2 Complex refinery margin (MOL+SN) 7.7 7.8 7.6 8 7.4 7.3 7.4 7.4 7.1 6.8 6.5 6.7 7 6.3 6.3 6.2 6.2 5.9 6.0 7.0 6 5.6 5.5 5.3 5.5 5.6 5.3 5.4 5.0 5.2 5.0 5 4.4 4.6 4.6 4.9 4.8 4.5 4.5 4.3 4.2 4.2 USD/bbl 3.8 3.8 3.6
Slide 72: New retail concept
NEW RETAIL CONCEPT Check out MOL Group’s new retail concept: 72
Slide 73: 73
73
Slide 74: Disclaimer
DISCLAIMER "This 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, cap
Slide 75: More info at www.molgroup.info
MORE INFO AT WWW.MOLGROUP.INFO CONTACT: PHONE: +36 1 464 1395 E-MAIL: INVESTORRELATIONS@MOL.HU