Slide 1: OMV Q3/16 conference call
OMV Q3/16 conference call Rainer Seele Chairman of the Executive Board and CEO November 9, 2016 OMV Aktiengesellschaft
Slide 2: 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 3: Key messages
Key messages ► Positive free cash flow after dividends in Q3/16 as well as 9m/16 ► 2016 and 2017 CAPEX guidance reduced ► 2016 E&A expenditure forecast reduced; 2017 E&A expenditure confirmed ► Sale agreement for 49% in Gas Connect Austria signed ► OMV divests its wholly owned Upstream subsidiary in
Slide 4: OMV divests Upstream UK subsidiary
OMV divests Upstream UK subsidiary ► OMV agreed to sell 100% of shares in OMV (U.K.) Limited to Siccar Point Energy Limited, Aberdeen ► Transaction value: up to USD 1 bn ► Effective date: January 1, 2016 ► OMV is partner in 22 licenses in the UK Continental Shelf ► Closing expected in Q1/2017, subje
Slide 5: HSSE – Safety is our top priority
HSSE – Safety is our top priority Safety record Health, Safety, Security & Environment LTIR 1 OMV Group ► Lost-Time Injury Rate on the level of 2014 ► Third Party Audit on Incident 0.66 Investigation Process ongoing 0.52 ► Safety Culture Program – second 0.44 0.45 phase started 0.27 2012 2013 2014 2
Slide 6: Development of economic environment
Development of economic environment Oil price Brent OMV indicator refining margin in USD/bbl OMV in USD/bbl oil price 80 8 forecast 2016 2017 2018 2019 2020ff 7.8 60 Price 44 55 65 70 75 6 5.9 40 50 4 5.1 44 46 46 4.7 34 3.7 20 2 0 0 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Gas pr
Slide 7: Financial performance in Q3/16
Financial performance in Q3/16 Key financials Q3/16 Q2/16 Δ (%) in EUR mn Clean CCS EBIT 415 214 94 Clean CCS net income 447 222 101 attributable to stockholders Clean CCS 1.37 0.68 101 Earnings Per Share (EPS), in EUR Free cash flow after dividends 239 172 39 Special items (350) (608) 43 EBIT 63 (3
Slide 8: Financial performance in 9m/16
Financial performance in 9m/16 Clean CCS EBIT Clean CCS net income Free cash flow in EUR mn attributable to stockholders in EUR mn in EUR mn 1,203 968 645 842 796 266 103 9m/15 9m/16 9m/15 9m/16 (426) 9m/15 9m/16 55 42 Brent price in USD/bbl Free cash flow before dividends 7.7 4.5 OMV indicator refi
Slide 9: Key portfolio developments
Key portfolio developments Gas Connect Austria ► Sale of 49% stake in Gas Connect Austria to a consortium of Allianz and Snam signed Rosebank ► Closed the sale of a 30% stake in the Rosebank field; cash impact in Q4/16 Turkey – Aliaga Terminal ► OMV Petrol Ofisi agrees sale of Aliaga Terminal to SOC
Slide 10: 2016 CAPEX guidance reduced to EUR 2 bn
2016 CAPEX guidance reduced to EUR 2 bn Group CAPEX ► Focus on profitable barrels and incl. capitalized E&A in EUR bn sustainable reduction of unit CAPEX cost (28)% ► Main investments in 9m/16: 2.8 ► Gullfaks, Schiehallion and Aasta 2.2 Hansteen in the North Sea 2.0 ► Field redevelopment projects as
Slide 11: 41% reduction of E&A expenditure in 2016
41% reduction of E&A expenditure in 2016 E&A expenditure E&A expenditure forecast reduced to in EUR mn EUR 360 mn from EUR 450 mn in 2016 ► Lower activities across the portfolio (41)% ► Focus on low cost regions and near- 607 field opportunities ► Main activities in Norway, Romania 360 and Bulgaria
Slide 12: On track to deliver committed cost savings
On track to deliver committed cost savings Operating cost 1 reduction in EUR mn 150 Delivery of EUR 100 mn >150 New target already in 2016E >50 mn EUR 100 100 100 Original target 50 100 mn EUR 0 Baseline 2015 Dec. 2016 Dec. 2017 1 On comparable basis. 12 | OMV Group, Q3/16 results presentation
Slide 13: OMV Q3/16 conference call – CFO
OMV Q3/16 conference call Reinhard Florey Chief Financial Officer November 9, 2016 OMV Aktiengesellschaft
Slide 14: Income statement summary
Income statement summary in EUR mn Q3/16 Q2/16 Δ (%) Q3/15 Clean CCS net income attributable to stockholders EBIT 63 (300) n.m. (728) in EUR mn Financial result 75 72 3 9 447 Thereof Borealis 110 111 (2) 93 101% Taxes (8) 111 n.m. 258 Net income 129 (117) n.m. (461) 222 Thereof attributable to non-c
Slide 15: Cash flow
Cash flow in EUR mn Q3/16 Q2/16 Q3/15 Net income 129 (117) (461) Depreciation, amortization, impairments including write-ups 899 1,157 1,631 Change in net working capital components (154) 345 232 Other (223) (349) (267) Cash flow from operating activities 652 1,036 1,135 Cash flow used for investmen
Slide 16: Substantially increased results despite ongoing difficult market environment
Substantially increased results despite ongoing difficult market environment Key financials Q3/16 Q2/16 Q3/15 Special items and CCS effect in EUR mn Q3/16 in EUR mn 415 (3) Clean CCS EBIT 415 214 495 Thereof Upstream 38 0 52 (350) -350 Downstream 377 250 402 Corporate and Other (7) (12) 3 63 Consoli
Slide 17: Upstream Q3/16 vs. Q3/15
Upstream Q3/16 vs. Q3/15: Difficult pricing almost offset by lower costs and higher volumes Clean EBIT Q3/16 vs. Q3/15 in EUR mn Lower realized oil price by 14% and 52 gas price by 20% 38 Higher sales volumes following 20 20 increased production in Norway 38 Lower exploration expenses due to r
Slide 18: Downstream showed robust performance
Downstream showed robust performance Clean CCS EBIT Q3/16 vs. Q3/15 in EUR mn Oil 402 OMV indicator refining margin 377 decreased to USD 3.7/bbl Gas 65 +93 Utilization rate at 97% Retail and commercial margins increased driven by higher demand Oil 430 (118) Gas 312 Restructuring efforts prog
Slide 19: OMV Petrom Group reports improved results versus Q2/16
OMV Petrom Group reports improved results versus Q2/16 Key financials Q3/16 Q2/16 Q3/15 Q3/16 vs. Q2/16 in EUR mn Hydrocarbon production decreased to Clean CCS EBIT 137 49 239 174 kboe/d due to natural decline Production cost at USD 11.3/boe was 7% lower Thereof Upstream 45 43 94 Downstream Oi
Slide 20: Targeting a long-term gearing ratio of ≤30%
Targeting a long-term gearing ratio of ≤30% Net debt development Strong liquidity position as of Q3/16 in EUR bn Cash position at EUR 1.7 bn 5 4.04 3.99 Committed revolving credit facilities of 4 3.74 EUR 3.6 bn (undrawn) 3 Net debt Sept. 2016: EUR 3.74 bn (Dec. 2015: 2 EUR 4.04 bn) 1 Gearin
Slide 21: Outlook 2016
Outlook 2016 ► Brent oil price: Annual average of USD 44/bbl expected Gas prices on European spot markets are expected to show a seasonally ► European gas markets: upward trend in Q4/16 compared to Q3/16 OMV’s Q4/16 indicator refining margin is expected to be above the Q3/16 ► Refining: level; Utili
Slide 22: OMV Aktiengesellschaft
IV Aktiengesellschaft ouv Moving more. Moving the future. oO M Vv