Slide 1: Q4 2023 Results Conference Call
Q4 2023 Results Conference Call Alfred Stern Chairman of the Executive Board and CEO February 1, 2024 1 | Q4 2023 Conference Call, February 1, 2024 © OMV Group
Slide 2: Disclaimer
Q4 2023 Results conference call Disclaimer 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”, “target”, “objective”, “estimate”, “goal”, “may”, “will”, and sim
Slide 3: Strategy 2030 implementation
Q4 2023 Results conference call Strategy 2030 implementation 2023 Financials Strategy progress in 2023 - Highlights C&M ● Strengthened our position in circular economy through acquisitions, adding 70 kt to production capacity (Rialti, Integra Plastics) ● Took FID together with Interzero to build and
Slide 4: Macro environment
Macro environment Rangebound oil prices, normalization of gas prices, healthy refining margins and weak chemical market environment Oil prices Gas prices USD/bbl EUR/MWh Realized gas price Central European Gas Hub Average Brent price Average realized crude price 99 56 89 87 38 34 40 81 84 78 46 86 8
Slide 5: Clean CCS Earnings
Clean CCS Earnings Good performance: improvement compared with the previous quarter, but decrease versus extraordinary prior-year quarter Clean CCS Operating Result Clean CCS net income attributable to Clean CCS Earnings Per Share EUR mn stockholders EUR Chemicals & Materials EUR mn Fuels & Feedstoc
Slide 6: Chemicals & Materials
Chemicals & Materials Divestment of loss-making Nitro business and marginally positive inventory effects were more than offset by weaker margins Clean Operating Result EUR mn Nitro: negative contribution of Nitro of EUR (30) mn in Q4/22; business was (52) divested in July 2023 Olefins & Polyolefins
Slide 7: Specialty polyolefin margins and volumes in Europe have proven very resilient
Chemicals & Materials Specialty polyolefin margins and volumes in Europe have proven very resilient Polyolefin clean sales margin of Borealis excluding JVs Standard products sales margin in EUR Specialty products sales margin in EUR Europe PE/PP average indicator margin in EUR/t 850 ● Specialty prod
Slide 8: Fuels & Feedstock
Fuels & Feedstock Significantly lower refining indicator margins, partially offset by stronger retail and commercial results Clean CCS Operating Result EUR mn (316) 684 ● Strong refining indicator margin at USD 9.9/bbl , however declined from the exceptional level of Q4/22 (17.5/bbl), mainly driven
Slide 9: Energy
Energy Earnings declined, primarily due to lower gas prices, partially offset by an improved Gas Marketing & Power result Clean Operating Result EUR mn ● Market environment (314) ● Average realized crude oil price decreased by -5% ● Average realized natural gas price declined by -42% 1,354 ● Negativ
Slide 10: Cash Flow
Cash Flow Organic free cash flow before dividends at EUR 2.3 bn for 2023 Cash flow 2023 vs. 2022 ● Third all-time historical highest cash flow from operating activities EUR bn excluding net working capital effects of EUR 4.6 bn ● Net working capital effects of EUR 1.1 bn 12m/22 (2022: EUR -2.1 bn) 9
Slide 11: Strong balance sheet
Strong balance sheet Very low leverage ratio and high cash position Leverage ratio Net debt in EUR bn 9.3 End of December 2023 OMV cash position1 32% 6.0 EUR 7.0 bn 4.7 22% 21% End of December 2023 3.1 OMV undrawn committed 2.2 2.1 1.7 credit facilities 11% 8% 0.6 8% 6% EUR 5.3 bn 2% 2019 2020 2021
Slide 12: Shareholder rewards
Shareholder rewards Consistent increase of regular dividend over the last 9 years and a significant special dividend 5.05 5.05 Special dividend 2.25 2.10 Instrument in shareholder distributions added in 2022 2.30 Regular dividend 1.75 1.75 1.85 According to progressive dividend policy 1.50 1.20 2.80
Slide 13: Disciplined organic growth investments in 2024
Investments Disciplined organic growth investments in 2024 Main projects in 2024 EUR 3.8 bn, thereof ~EUR 0.2 bn non-cash leases Organic CAPEX EUR bn Chemicals & Materials ~3.8 Construction of PDH plant in Kallo, Belgium ~3.7 Plastic waste sorting plant in Germany together with Interzero 1.0
Slide 14: Outlook 2024
Q4 2023 Results Outlook 2024 2023 2024 Brent oil price (USD/bbl) 83 ~80 THE gas price (EUR/MWh) 41 ~30-35 Average realized gas price (EUR/MWh) 29 ~25 Europe ethylene indicator margin (EUR/t) 507 ~490 Europe propylene indicator margin (EUR/t) 389 ~370 Europe polyethylene indicator margin (EUR/t)1 322
Slide 15: Appendix
APPENDIX 15 | Q4 2023 Conference Call, February 1, 2024 © OMV Group
Slide 16: Chemicals & Materials
Chemicals & Materials Higher olefin margins partially offset by higher fixed costs and lower Baystar contribution Clean Operating Result EUR mn Nitro: divestment of the business in July 2023 +16 Olefins and polyolefins in Europe ● Market environment and inventory effects ● Lower ethylene and propyle
Slide 17: Fuels & Feedstock
Fuels & Feedstock Lower refining margins, partially offset by an improved utilization rate and higher commercial performance Clean CCS Operating Result EUR mn (50) -12% 418 368 113 ● Lower refining indicator margin Europe (USD 9.9 vs 14.0/bbl) 63 ● Operational performance ● Slightly higher refinery
Slide 18: Energy
Energy Slightly more favourable market environment and higher Gas Marketing contribution Clean Operating Result EUR mn +98 ● Market environment 1,041 ● Average realized oil price increased by 1% 19 23 Gas Marketing 942 94 98 ● Average realized gas price increased by 4% &Power 19 ● Immaterial FX impa
Slide 19: Balance sheet
Balance sheet Strong balance sheet Balance sheet December 31, 2023 vs. September 30, 2023 EUR bn 50.6 50.7 50.7 50.6 ● Reclassification of OMVSapura to ‘held for sale’ as of Stockholders’ equity Dec 4th, 2023, amongst others leading to a decrease and hybrid capital 18.2 18.4 Tangible & 22.5 21.9 of
Slide 20: Sensitivities of the OMV Group results in 2024
2024 Sensitivities Sensitivities of the OMV Group results in 2024 Annual impact excl. hedging Clean CCS Operating Operating cash flow in EUR mn Result Brent oil price (USD +1/bbl) +55 +25 Realized gas price (EUR +1/MWh)1 +75 +40 OMV indicator refining margin Europe (USD +1/bbl) +115 +90 Ethylene ind