Mol Hungarian Oil & Gas Plc Class A · BET:MOL
Mol Hungarian Oil & Gas Plc Class A — MOL Group — Investor Presentation (May 2016)
74 slides from Mol Hungarian Oil & Gas Plc Class A's investor presentation, May 2016
Slide 1: MOL Group Investor Presentation May 2016
MOL GROUP INVESTOR PRESENTATION MAY 2016
Slide 2: Agenda
AGENDA 1 Investment case 2 Q1 2016 recap 3 Downstream overview 4 Upstream overview 5 Financials and other 6 Appendix 2
Slide 3: Investment Case
INVESTMENT CASE
Slide 4: On Track to Deliver
ON TRACK TO DELIVER WITH THE ESSENTIAL FUNDAMENTAL BUILDING BLOCKS 2015 YTD 2016 Target GROUP CLEAN USD 2.5 BN USD 510 MN USD 2 BN+ CCS EBITDA RESILIENT INTEGRATED BUSINESS MODEL GROUP CAPEX USD 1.3 BN USD 185 MN UP TO USD 1.3 BN (ORGANIC) FCF FINANCIAL USD 1,040 MN USD 217 MN POSITIVE GENERATION* D
Slide 5: 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 6: Mid-Term Focus/Strategy
MID-TERM FOCUS/STRATEGY SUSTAIN STRONG EBITDA, FCF GENERATION AND DIVIDENDS STRONG BALANCE SHEET AND AMPLE LIQUIDITY HIGH QUALITY, LOW-COST ASSET BASE RESILIENT INTEGRATED BUSINESS MODEL ALLOWS MOL TO ABSORB EXTERNAL SHOCKS, GENERATE STRONG CASH FLOWS (AND FCF) CONFIDENT TO BE ABLE TO GENERATE AT LE
Slide 7: Strong Balance Sheet and Liquidity
STRONG BALANCE SHEET AND LIQUIDITY MAJORITY OF THE STRONG FCF IN 2009-2015 AVAILABLE LIQUIDITY (31.03.2016)* WAS INVESTED INTO DELEVERAGING EUR 3.5bn 3.5 ROBUST BALANCE SHEET TO WITHSTAND 3.0 0.8 EXTREME OIL MACRO SCENARIOS 2.5 0.3 0.2 SUBSTANTIAL (EUR 3.5BN) LIQUIDITY, 2.0 ENHANCED BY THE EUR 750MN
Slide 8: 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 2,183 719 2,000+ 1,926 2,407 1,854 1,594 1,167 1,650 682 697 874 350 669 428 510 Q1 2016 345 258 263 253 213 -214 -215 -250 -111 -105 -257
Slide 9: ...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 Q1 5Y 2014 2015 2016E +/- 50 USD/Mcm 2016 AVG Gas Price (NCG2) ~10 0.5% Brent crude 98.9 52.4 33.9 35-50 97 (USD/bbl) +/- 10
Slide 10: Organic Capex Trimmed to Up to USD 1.3bn
ORGANIC CAPEX TRIMMED TO „UP TO USD 1.3BN” CAPEX VS OPERATING CASH FLOW1 (USD MN) Operating Cash flow Organic US Organic GM 2,500 Inorganic Group Organic DS Organic C&O (incl. intersegment) 2,277 2,000 580 1,599 1,560 11 1,500 1,368 1,211 301 Up to 1,300 591 132 1,198 886 0 164 1,000 556 670 711 514
Slide 11: Sustainable FCF Generation
SUSTAINABLE FCF GENERATION SOURCES AND APPLICATIONS OF CASH (USD MN) 180 984 -549 284 830 666 521 407 579 197 196 350 310 205 270 200 11 421 2 970 350 456 420 302 2 739 132 2 524 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 EBITD
Slide 12: Downstream: Benign Macro Likely to Remain
DOWNSTREAM: BENIGN MACRO LIKELY TO REMAIN BUT NOT AS SUPPORTIVE AS IT WAS IN 2015 Petchem: integrated margins remained very supportive in 2016 ytd, holding upside risk for the year Refining: diesel cracks depressed ytd, but mostly offset thus far by low oil prices, wider crude differentials and dece
Slide 13: 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 14: 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 1,411 98 525 26 23 25 21 830 670 119 0 500-600 80 79 81 886 670 711 77 2013 2014 2015 2016
Slide 15: E&P: Aiming for Self-Funding @ 35 USD/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 @ of organic CAPEX ~8
Slide 16: Increasing Distribution to Shareholders
INCREASING DISTRIBUTION TO SHAREHOLDERS 2% SHARE CANCELLATION IMPROVES SHAREHOLDERS’ TOTAL RETURN RISING TREND IN DIVIDEND STREAM AND DPS (+17% IN 2016) IMPROVING YIELDS - GROWING IMPORTANCE IN INVESTMENT STORY ONE OF THE VERY FEW INTEGRATEDS WHO CAN INCREASE DPS IN 2015.... ...AND CAN COMFORTABLY C
Slide 17: Simpler Shareholder Structure
SIMPLER SHAREHOLDER STRUCTURE AS OF 31 MARCH 2016 DANA GAS SOLD ITS STAKE IN 2015 INCREASING FREE FLOAT THE 6M SHARES FROM MAGNOLIA MIGRATED TO TREASURY SHARES IN MARCH 2016 2016 AGM DECIDED ON 2% SHARE CANCELLATION MOL Investment Ltd. (treasury shares) Domestic private investors 7.2%* 3.6% Foreign
Slide 18: 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
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Slide 20: Q1 2016 Recap
Q1 2016 RECAP On track to deliver 2016 targets
Slide 21: Solid EBITDA Generation in Q1
SOLID EBITDA GENERATION IN Q1 ON TRACK TO DELIVER 2016 TARGETS FINANCIAL HIGHLIGHTS Robust Clean CCS EBITDA of HUF 144bn (USD 510m) in Q1 2016, implying that MOL is well on track to deliver on its USD 2bn+ annual guidance Downstream EBITDA growth offset the decline in Upstream profits year-on-year N
Slide 22: Integrated Business Model Continues to Work
INTEGRATED BUSINESS MODEL CONTINUES TO WORK RECORD-HIGH DOWNSTREAM EBITDA OFFSETS UPSTREAM PROFIT DECLINE KEY GROUP FINANCIALS (HUF bn) SEGMENT CLEAN CCS EBITDA (HUF bn) +31% -56% -8% -5% +164% -8% -5% 157 152 144 177 195 77 59 78 152 29 157 160 144 44 60 42 62 106 76 93 18 19 19 3 -10 -434 -17 CCS
Slide 23: Downstream Strength Offset Weaker E&P
DOWNSTREAM STRENGTH OFFSET WEAKER E&P SEASONALITY AFFECTS PROFITABILITY QOQ GROUP EBITDA QoQ (HUF bn) COMMENTS 151.5 1.9 Downstream Seasonally weaker in Q1 144.3 Yet once again a record-high 12.8 1.5 contribution for this period of 8.7 the year... …driven by the petchem 0.3 strength... ...and offset
Slide 24: Downstream: EBITDA Grew by 22% in Q1 YoY
DOWNSTREAM: EBITDA GREW BY 22% IN Q1 YOY ON STRONGER PETCHEMS AND RETAIL CLEAN CCS EBITDA YoY (HUF bn) COMMENTS 3 93 Substantially higher 11 2 22 13 15 petchem margin (+191 EUR/t 76 78 1 IM margin) 10 Higher petchem and retail 24 45 volumes Weaker R&M complex 42 margin and lower refinery 34 throughp
Slide 25: E&P: Volumes, Costs Partly Offset Price Impact
E&P: VOLUMES, COSTS PARTLY OFFSET PRICE IMPACT US EBITDA QoQ (HUF bn) COMMENTS 44 6 42 Higher volumes (Hungary, UK) 12 Lower exploration 33 3 expenses on reduced 1 2 activty 9 Lower direct lifting costs EBITDA ex- Prices FX Volumes Exploration Other EBITDA ex- Depreciation EBIT ex-oneoff oneoff Q4 1
Slide 26: CEE, UK Drive Volumes Growth
CEE, UK DRIVE VOLUMES GROWTH CEE PRODUCTION OPTIMISATION IN FOCUS QUARTERLY PRODUCTION BY COUNTRY COMMENTS +9% +4% Q1 2016 vs. Q4 2015 (+3.5%) 112.1 ~112.0 Hungary: +2 mboepd QoQ on 108.3 3.3 production optimization Other 103.5 103.3 103.7 3.3 2.8 3.2 3.3 3.4 100.5 3.9 UK: +4 mboepd QoQ on KRI 2.7 1
Slide 27: On Track Towards Self-Funding Operations
ON TRACK TOWARDS SELF-FUNDING OPERATIONS AT USD 35/BBL OIL PRICE - NEW UPSTREAM PROGRAM IN PROGRESS 2016 YTD TARGET Visible CEE onshore PRODUCTION growth on production Mboepd 105-110 112 optimization Higher UK volumes USD 80-100 mn opex UNIT OPEX reduction targeted 6-7 6.3 USD/boe Unit opex benefits
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) 566 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% CRUDE INTAKE: • Russian: 45% 75% • Seaborne: 18% 89% • Own Refining 79% production: 32% 7% captive Retail 39% market2 own 11% market Petrochem KEY STRENGTHS HIGHLIGHTS & FIGURES
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 Average 6.1 Mtpa 18,0 Average 14 MOL Group 8.1 Mtpa 16,0 11.5 MOL excl. INA 12 4.5 Mtpa 10.6 14,0 10 9.1 2.2 Mtpa 12,0 NCI 8 10,
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% Production 350 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): 2014 1 750 311 # of fuel stations Slovnaft Czech Republic 2015 1 861 Slovnaft Slovakia 253 2017 > 2 000 Austria 364 Hungary 206 Sign
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) Capacity LyondellBasell 2390 420 kT HDPE Borealis 1885 Total Petrochemicals 1120 Naphtha SABIC Europe 950 Gasoil INEOS 755 LPG 285 kT Braskem 545 LDPE MOL Group 535 SIBUR 500 Repsol 490 Basell Orlen 400
Slide 40: Extending the Petrochemicals Value Chain
EXTENDING THE PETROCHEMICALS VALUE CHAIN 2 TO INCREASE PROFITABILITY LDPE4 Butadiene Synthetic rubber New 220 ktpa capacity LDPE New 130 ktpa capacity Entering the synthetic unit replaces 3 old ones at Butadiene Extraction Unit rubber business with a 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 Increased The reliable operation of pipeline capacity: Friendship 1 pipeline restored 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 GROWING TO 110-115 MBOEPD IN 2018 MID-TERM PRODUCTION PROFILE STABLE CONTRIBUTION FROM HIGH- (MBOEPD) MARGIN CEE OPERATIONS 120 ~110-115 Positive cash generation even at ~105-110 ~105-110 104 USD 30/bbl oil price 100 98 Reversed production decline and
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 targeted ~15
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 AND CROATIA (117+172 MMBOE) Hungary CRO onshore CRO offshore Employed a systematic approach to identify improvement 100 0% potential in both surface and subsurface 80 Production
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 45 -4% 14 -1% 50 -5% +5% 12 40 40 Hungary 30 10 35 20 8 10 30 6 0 2013 2014 2015 Q1 20
Slide 50: CEE: Comprehensive Production Optimization
CEE: COMPREHENSIVE PRODUCTION OPTIMIZATION WELL PERFORMANCE IMPROVEMENT ALS optimisation GOALS Field development Fracking strategy on portfolio Maximize extraction of level - reserve transfer Well workovers profitable barrels 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 (11 MMBOE) Operator of the TAL block 30 km from the border of Afghanistan, currently with 78 mboepd production on 100% basis 11 discoveries (7 operated) sinc
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 w
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 schedule, on budget with first oil anticipated in H1 2017 Operat
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 award
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 2,277 2,000 580 1,599 1,560 11 1,500 1,368 1,211 301 1,300 591 132 1,198 886 0
Slide 58: Strong Balance Sheet and Liquidity
STRONG BALANCE SHEET AND LIQUIDITY DRAWN VERSUS UNDRAWN FACILITIES AVAILABLE LIQUIDITY (31.03.2016)* (31.03.2016) EUR 3.5bn Medium term loan Long term loan 3.5 Senior Unsecured Bonds Outstanding short term loans 3.0 0.8 5 000 2.5 0.3 4 000 634 0.2 2145 1189 2.0 3 000 EUR mn 177 1.5 2 000 1.0 2.1 259
Slide 59: Sufficient Liquidity for Acquisitions
SUFFICIENT LIQUIDITY FOR ACQUISITIONS FROM DIVERSIFIED FUNDING SOURCES AVERAGE MATURITY OF 2.35 YEARS1 Reported cash & cash equivalents Medium term loan Undrawn facilities 1,400 EUR 750mn Eurobond issue in Senior Unsecured Bonds Long term loan (multilaterals) 1,200 April 2016 extends average 1,000 m
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% intermediate 35% 30% BBB 25% significant BBB- 20% 15% aggressive BB+ 10% BB 5% 0% 2010 2011 2012 2013 2014 KEEP, FFO/DEB
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) o
Slide 62: Executive Incentive Schemes
EXECUTIVE INCENTIVE SCHEMES ON THE TOP LEVEL, MORE THAN TWO THIRD 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 ind
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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. Operator Shaikan 20% GKP (75%) Khor Mor 10% Pearl Chemchemal 10% Petroleum 66
Slide 67: 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 68: Russia
RUSSIA MATJUSHKINSKY BAITUGAN 68
Slide 69: 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 70: 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 6.6 7 6.3 6.3 6.2 6.2 5.9 6.0 7.0 5.8 5.8 6 5.6 5.5 5.3 5.5 5.6 5.3 5.4 5.4 5.2 5.0 5.2 5.0 5.0 5 4.4 4.6 4.6 4.9 4.8 4.5 4.5 4.3 4.2
Slide 71: New Retail Concept
NEW RETAIL CONCEPT Check out MOL Group’s new retail concept: 71
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Slide 73: 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, capit
Slide 74: More Info at www.molgroup.info
MORE INFO AT WWW.MOLGROUP.INFO CONTACT: PHONE: +36 1 464 1395 E-MAIL: INVESTORRELATIONS@MOL.HU