Slide 1: Results January-June and Q2 2015 and business update
Results January-June and Q2 2015 and business update August 12, 2015 OMV Aktiengesellschaft
Slide 2: CEO update
CEO update Rainer Seele, Chairman of the Executive Board and CEO OMV Aktiengesellschaft
Slide 3: HSSE: Safety is our priority
HSSE: Safety is our priority Strong safety improvement record LTIR 1 OMV Group 0.7 0.7 0.5 0.4 0.3 2011 2012 2013 2014 6m/15 1 Lost-Time Injury Rate: Number of lost time injuries per 1 mn hours worked 3 | OMV Group, Results January-June and Q2 2015 and business update
Slide 4: Integrated business and diversified portfolio provide natural hedge in current environment
Integrated business and diversified portfolio provide natural hedge in current environment 120 Oil price, Dated Brent, 100 USD/bbl 80 60 40 30 Gas price, CEGH, 25 EUR/MWh 20 15 10 10 Refining margin, OMV indicator refining 8 margin, 6 USD/bbl 4 2 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/
Slide 5: Financial performance
Financial performance Clean CCS EBIT Clean CCS Earnings Per Share Free cash flow before dividends in EUR mn in EUR in EUR mn 375 1.11 369 333 116 33 0.73 0.62 349 260 269 166 97 71 41 (10) (51) Q2/14 Q1/15 Q2/15 Q2/14 Q1/15 Q2/15 Upstream Downstream Corporate & Others, Consolidation (517) Q2/14 Q1/1
Slide 6: Framework for strategic review
Framework for strategic review ► Improve cash flow & profitability ► Continue integrated business model ► Upstream growth will remain focus 6 | OMV Group, Results January-June and Q2 2015 and business update
Slide 7: Results Q2/15
Results Q2/15 David C. Davies, Deputy Chairman of the Executive Board and CFO OMV Aktiengesellschaft
Slide 8: Q2/15 Highlights
Q2/15 Highlights Clean CCS EBIT Q2/15 vs. Q2/14 in EUR mn Average Brent price down by 44% to 369 375 USD 62/bbl 41 Production at 307 kboe/d, up by 3% Higher oil sales volumes in Upstream, (232) 198 mainly due to Norway Higher Downstream result due to strong refining performance Gearing rat
Slide 9: Economic environment
Economic environment Oil price and EUR/USD Gas prices in EUR/MWh OMV indicator refining margin in USD/bbl 2 1.37 7.8 140 1.4 25 8 21 130 1.3 20 7 120 1.2 20 110 1.11 6 110 1.1 17 5 15 17 100 1.0 4 90 0.9 10 3 80 0.8 1.9 70 2 62 0.7 5 60 0.6 1 50 0.5 0 0 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q2/14 Q3/14 Q4/1
Slide 10: Results in Q2/15
Results in Q2/15 Clean CCS net income attributable in EUR mn Q2/15 Q2/14 to stockholders 1 EBIT 222 232 (4)% in EUR mn Financial result 92 (14) n.m. Profit from ordinary activities 314 219 44% Taxes (23) (44) (49)% 364 Effective tax rate 7% 20% (64)% Net income 292 175 67% Minorities and hybrid c
Slide 11: Special items and CCS effect
Special items and CCS effect Q2/15 in EUR mn Q2/15 Q2/14 in EUR mn Clean CCS EBIT 375 369 CCS gains/(losses) 45 16 375 45 (12) Clean EBIT 420 386 (206) Personnel related costs (12) (8) 222 Unscheduled depreciation (206) (132) 0 21 Asset disposals 0 (27) Other 21 13 Total special items (198) (153) Cl
Slide 12: Cash flow
Cash flow 6m/15 in EUR mn 6m/15 6m/14 in EUR mn Net income 513 613 (16)% (198) (411) 1,361 Depreciation and 1,361 1,247 9% amortization 513 (1,685) Other (198) (164) 21% (421) Sources of funds 1,676 1,695 (1)% (950) (530) Change in net working (411) (108) n.m. Net income Depreciation Other Chang
Slide 13: CAPEX and EBITD
CAPEX and EBITD 6m/15 in EUR mn Key investments in Q2/15 1,810 Field developments and redevelopments in Norway: Aasta Hansteen, Gullfaks and 1,396 Edvard Grieg 944 Romania: drilling, workovers and field redevelopments Exploration activities 1,202 Completion of the Maari Growth project in New
Slide 14: Upstream Clean EBIT
Upstream Clean EBIT in EUR mn Q2/15 vs. Q1/15 Q2/15 vs. Q2/14 349 (242) 38 (47) (55) 10 52 (48) 116 116 157 (3) (10) 33 Q1/15 Realization Volume Exploration DD&A Other Q2/15 Q2/14 Realization Volume Exploration DD&A Other Q2/15 expenses expenses Higher oil price by 15% Lower oil price by 44% H
Slide 15: Upstream Key Performance Indicators
Upstream Key Performance Indicators Hydrocarbon production in kboe/d Q2/15 vs. Q1/15 318 Production up by 1% 297 311 303 307 Norway: Gudrun field ramped-up, 145 163 164 150 154 following the technical issues in Q1/15 New Zealand: additional wells on stream at Maari field 152 149 154 152 152
Slide 16: Upstream OMV Petrom group
Upstream OMV Petrom group Hydrocarbon production in kboe/d Q2/15 vs. Q1/15 180 178 182 184 181 Clean EBIT at EUR 124 mn (up from EUR 39 mn) 84 84 84 85 85 Higher oil prices and lower production costs 95 95 97 98 96 Slightly offset by higher exploration expenses Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Oi
Slide 17: Downstream Clean CCS EBIT
Downstream Clean CCS EBIT Q2/15 vs. Q2/14 in EUR mn 34 (26) 269 190 71 Q2/14 Refining 1 Marketing 1 Downstream Gas Q2/15 Significantly higher OMV indicator refining margin Strong petrochemicals business driven by increased margins Improved marketing business supported by increased product dema
Slide 18: Downstream Key Performance Indicators
Downstream Key Performance Indicators Refining utilization rate in % 1 Q2/15 vs. Q2/14 103 101 95 94 96 90 82 86 81 Overall refining utilization rate at 92%, 59 up by 8% Marketing sales volumes slightly down by 3% Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 West East Very strong result contribution from Bor
Slide 19: CAPEX and cost reduction progressing well
CAPEX and cost reduction progressing well Group CAPEX reduced in EUR bn Group CAPEX reduced by EUR ~1.1 bn 1 ~3.8 E&A 2 expenditure cut by up to EUR 200 mn targeted ~2.7 ~3.0 Reduction of annual operating cost and ~2.0 overhead cost by EUR ~150 mn 3 Headcount reduction program ~0.9 ~0.6 Re
Slide 20: Outlook 2015
Outlook 2015 Oil price Annual average between USD 50 and 60/bbl expected Refining margins Expected to decline from 6m/15 level Marketing volumes Lower product prices expected to support demand Gas markets Remain challenging Production ~300 1 kboe/d CAPEX EUR ~2.7 bn (~80% Upstream) E&A 2 expenditure
Slide 21: Financial priorities 2015 to 2017
Financial priorities 2015 to 2017 Cash Mid-term goal: broadly neutral free cash flow after dividends 2014 dividend EUR 1.25 per share Dividend Maintain dividend policy of long-term payout ratio of 30% of net income Maintain strong investment grade credit rating Rating Strong balance sheet
Slide 22: Upstream update
Upstream update Jaap Huijskes, Executive Board member responsible for Upstream OMV Aktiengesellschaft
Slide 23: High focus on reducing operating cost base
High focus on reducing operating cost base OPEX 2015 OPEX reduction up to USD 3/boe: in USD/boe driven by favorable FX-rate and USD ~1/boe attributable to intrinsic business effort 16.6 Unit production costs estimated to remain broadly 13.8 at the 6m/15 level throughout 2015 Continued strict cos
Slide 24: Production update
Production update in kboe/d Production in the first half of 2015: 309 307 ► Romania and Austria: 205 kboe/d 303 ~300 1 15 1 7 ► Libya shut-ins ► Yemen: Production stopped beginning of April ► New Zealand: Maari Growth ramped-up in Q2/15 due to the drilling campaign, last well started-up in July 294
Slide 25: Projects update
Projects update ► Gudrun (Norway): 6th well expected on stream in August ► Gullfaks further development (Norway): Aasta Hansteen Spar South – production started at the end of July Norway Rimfaksdalen – On stream in 2017 Gudrun, Norway ► Edvard Grieg (Norway): Topside modules completed and installed.
Slide 26: Exploration update and high impact wells
Exploration update and high impact wells 1 Exploration only Exploration and production Exploration success rate Bjaaland 58% in 6m/15 with successful wells in Romania, Norway, North Sea Hagar Austria and Tunisia Region Seismic Black Pakistan: Sofiya 3D and 2D in Kalat block finalized Stripfing T
Slide 27: Upstream priorities 2015+
Upstream priorities 2015+ Gudrun, Norway Safety and ► Safe operations performance ► Increase operational efficiency ► Flexibility and ► Managing expenditures and optionality Manage investment level cash ► Adjust further if ► Renegotiate key cost elements needed ► Minimize impact on underlying core p
Slide 28: Downstream update
Downstream update Manfred Leitner, Executive Board member responsible for Downstream OMV Aktiengesellschaft
Slide 29: Downstream delivers reliable results and substantial free cash flow
Downstream delivers reliable results and substantial free cash flow Downstream 1 Upstream & Other Downstream with reliable results in …and a strong contribution to OMV’s volatile oil price environment… investment capabilities Clean CCS EBIT, in EUR mn Share of Group’s Share of 700 operating cash flo
Slide 30: Restructuring of Downstream Oil business successfully implemented
Restructuring of Downstream Oil business successfully implemented Assets portfolio Operating costs Organization adjusted Significantly improved restructured reduced to restructured assets competitiveness Net assets, EUR Clean cash costs / refined New organization and Downstream Oil ROACE 1 product s
Slide 31: OMV with strong operational performance compared to peers
OMV with strong operational performance compared to peers Competitors OMV EU-16 Clean CCS EBITD / refinery Refinery utilization rates 2 Throughput per station 3 throughput 1 in % in mn liters in USD/bbl, Downstream Oil 6 100 11 10 95 5 9 8 7 90 4 6 5 85 3 4 3 80 2 2 1 0 75 1 (1) (2) 70 0 2010 2011 2
Slide 32: Borealis contributes strongly to net income
Borealis contributes strongly to net income Borouge 3 in ramp-up phase 1 Strong contribution to OMV’s bottom line from Borealis (OMV share 36%) in kt p.a. in EUR mn ~2,470 ~4,470 960 205 186 176 172 1,510 152 ~2,000 109 1,400 600 Borouge 1-2 Borouge 3 Total 2010 2011 2012 2013 2014 6m/15 Polypropyle
Slide 33: Downstream Gas: European gas markets remain oversupplied
Downstream Gas: European gas markets remain oversupplied EU 28 and Turkey: Contracted gas supply Market environment remains challenging exceeds demand, in bcm ► Continuously falling gas demand across Europe, mainly due to low gas-to-power demand ► Oversupplied markets and strong competition ► Margin
Slide 34: Integrated Downstream Gas
Integrated Downstream Gas Focus on cash generation Operating cash flow 1 Key actions going forward ► Improve core business 2011 2012 2013 2014 ► Restructure non-core assets ► Further streamline organization Reduce asset base Net assets 2011 2012 2013 2014 1 without financing costs 34 | OMV Group, Re
Slide 35: Downstream priorities 2015+
Downstream priorities 2015+ Safety and Strong free cash flow from safe operations cash One downstream organization Integration Strong value chain integration Restructure non-core gas and power assets Performance Strong focus on efficiency and operational performance 35 | OMV Group, Results
Slide 36: 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 37: OMV Aktiengesellschaft
OV OMV OMV Aktiengesellschaft OuvV Moving more. Moving the future. O M V