Slide 1: OMV Q4 and full-year 2017 conference call
OMV Q4 and full-year 2017 conference call Rainer Seele Chairman of the Executive Board and CEO February 21, 2018 OMV Aktiengesellschaft
Slide 2: Disclaimer
Disclaimer This report contains forward-looking statements. Forward-looking statements may be identified by the use of terms such as “outlook,” “expect,” “anticipate,” “target,” “estimate,” “goal,” “plan,” “intend,” “may,” “objective,” “will” and similar terms or by their context. These forward-look
Slide 3: Macro environment – higher oil prices, lower refining margins
Macro environment – higher oil prices, lower refining margins Oil price Brent OMV indicator refining margin USD/bbl USD/bbl 80 8 7.0 61 5.7 60 52 6 6.0 54 5.6 5.4 40 49 50 4 20 2 0 0 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Gas prices Ethylene/propylene net margin 2 EUR/MWh EUR/t
Slide 4: Successful transformation – earnings doubled
Successful transformation – earnings doubled Clean CCS Operating Result Clean CCS Earnings Per Share EUR bn EUR 3.0 4.97 1.2 1.7 3.52 Upstream 1.5 3.05 Downstream 1.8 Corporate & Others 2015 2016 2017 2015 2016 2017 Brent price 52 44 54 USD/bbl Figures on this and the following slides may not add up
Slide 5: Strong free cash flow after dividends; Further reduction of oil price break-even
Strong free cash flow after dividends; Further reduction of oil price break-even Free cash flow after dividends Brent oil price free cash flow 1 break-even EUR mn OMV Group, USD/bbl 1,013 (64)% -64% 615 70 35 25 2015 2016 2017 (569) 2015 2016 2017 1 Calculation of the oil price cash flow break-even
Slide 6: Key messages
Key messages € € OPERATIONAL PORTFOLIO COST DIVIDEND PERFORMANCE MANAGEMENT DISCIPLINE Production step-up to Acquired ~25% in Yuzhno Upstream production Dividend Per Share 377 kboe/d in Q4 Russkoye gas field cost <USD 9/boe of EUR 1.50, record in OMV’s 2017 free cash flow after Sold wind park in Rom
Slide 7: Solid Group clean CCS Operating Result
Solid Group clean CCS Operating Result Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR Upstream Downstream Corporate & Others EUR mn 804 688 1.45 300 1.12 412 344 472 91 367 510 0.47 362 356 153 Q4/16 Q3/17 Q4/17 Q4/16 Q3/17 Q4/17
Slide 8: Significant increase in Group Operating Result
Significant increase in Group Operating Result Operating Result Net income attributable to Earnings Per Share EUR mn stockholders EUR Upstream Downstream Corporate & Others EUR mn 758 631 1.35 247 294 439 0.95 311 517 384 (90) (28) (169) (378) (1.16) Q4/16 Q3/17 Q4/17 Q4/16 Q3/17 Q4/17 Q4/16 Q3/17 Q
Slide 9: Upstream: Favorable market environment and volume growth
Upstream: Favorable market environment and volume growth Clean Operating Result Q4 2017 vs. Q4 2016 EUR mn Higher oil and gas prices, partially offset by weaker USD +253 +253 Realized oil price increased by 23% 344 Realized gas price rose by 18% 19 Hedging result EUR (27) mn (EUR +5 mn) St
Slide 10: Yuzhno Russkoye (Russia) in OMV's portfolio
Yuzhno Russkoye (Russia) in OMV’s portfolio Economic effective date of the transaction: January 1, 2017 OMV entitled to receive 2017 dividends Severneftegazprom Equity accounted (SNGP) SNGP and Trader are reflected in OMV’s financial and operational statements OMV: 24.99% share starting Novemb
Slide 11: Downstream: Earnings almost at previous year's level despite the divestment of OMV Petrol Ofisi
Downstream: Earnings almost at previous year’s level despite the divestment of OMV Petrol Ofisi Clean CCS Operating Result Q4 2017 vs. Q4 2016 EUR mn Oil Similar refining margin (+2%) and slightly higher (6) ethylene/propylene net margin (+9%) High refinery utilization rate (92%) 362 13 356 Re
Slide 12: Continued strict cost discipline
Continued strict cost discipline Upstream production cost 1 CAPEX 2 Cost-savings program 3 USD/boe EUR bn EUR mn +130 +130 (33)% -33% (40)% -40% 13.2 2.8 330 10.6 8.8 1.9 1.7 200 0.6 Q4 1.1 Q1-Q3 2015 2016 2017 2015 2016 2017 2015 2016 2017 1 Starting with 2016, administrative expenses and selling a
Slide 13: Free cash flow after dividends of EUR 1 bn
Free cash flow after dividends of EUR 1 bn Sources and uses 1 of cash in 2017 EUR bn 3.6 Net divestments 0.2 Strong cash flow from operating activities of EUR 3.4 bn Free cash +1.0 1.0 flow after (Q4/17: EUR 742 mn) dividends Cash outflow for investments 2 of EUR 2.0 bn, including 2.6 payments t
Slide 14: Significant deleveraging and strong cash position
Significant deleveraging and strong cash position Net Debt development Strong liquidity position EUR bn Net debt increase to EUR 2 bn 4.0 EUR 1 bn Eurobond issued 3.0 Strong cash position of EUR 4 bn 2.0 Committed revolving credit facilities of EUR 3.5 bn (undrawn) 0.4 Long-term gearing ra
Slide 15: Record dividend proposed
Record dividend proposed Dividend per share EUR 1.50 1.25 1.25 Record dividend of EUR 1.50 per share for 1.20 1.20 1.10 2017 proposed to Annual General Meeting 1.00 1.00 We are committed to delivering an attractive and predictable shareholder return through the business cycle Progressive divid
Slide 16: Outlook 2018
Outlook 2018 2017 Outlook 2018 Brent oil price (USD/bbl) 54 60 CEGH gas price (EUR/MWh) 18 18 Total hydrocarbon production (kboe/d) 348 420 OMV indicator refining margin (USD/bbl) 6 <6 Ethylene/propylene net margin (EUR/t) 427 425 Utilization rate refineries (%) 90 >90 CAPEX (EUR bn) 1 1.7 1.9 E&A e
Slide 17: OMV Aktiengesellschaft
OV OMV OMV Aktiengesellschaft ouv The energy for a better life. (@) M Vv
Slide 18: BACKUP
BACKUP OMV Aktiengesellschaft
Slide 19: Upstream: More favorable market environment and increased volumes
Upstream: More favorable market environment and increased volumes Clean Operating Result Q4 2017 vs. Q3 2017 EUR mn Higher oil price offset by weaker USD +44 Realized oil price increased by 18% Realized gas price declined by 1% 344 Lower hedging result by EUR 37 mn 16 300 39 Increased prod
Slide 20: Downstream: Lower refining margin environment and seasonality effect
Downstream: Lower refining margin environment and seasonality effect Clean CCS Operating Result Q4 2017 vs. Q3 2017 EUR mn Oil (154) Lower refining margins (-19%) and ethylene/propylene margins (-6%) 510 Lower retail and commercial volumes due to seasonality; margins slightly declined 71 Impac
Slide 21: Strong balance sheet
Strong balance sheet Highlights Q4 2017 Balance Sheet Q4 2017 vs Q3 2017 EUR bn Assets 31.6 31.6 29.8 29.8 Tangible and intangible assets increased by EUR 0.9 bn mainly due to the acquisition of Yuzhno Russkoye Stockholders’ equity 11.2 Other long term assets increased by EUR 1 bn , 11.2 thereof
Slide 22: Operational KPIs
Operational KPIs Hydrocarbon production Refined product sales 1 Retail sales 1 kboe/d mn t mn t 377 7.87 2.67 341 315 5.39 4.95 1.72 1.55 Q4 2016 Q3 2017 Q4 2017 Q4 2016 Q3 2017 Q4 2017 Q4 2016 Q3 2017 Q4 2017 Hydrocarbon sales Refinery utilization rate Natural gas sales mn boe % TWh 33.0 96 96 92 2
Slide 23: Sensitivities of OMV Group in 2018
Sensitivities of OMV Group in 2018 Annual impact Clean CCS Operating Operating cash flow in EUR mn Result 1 Brent oil price (USD +1/bbl) +45 +30 Gas price 2 (EUR +1/MWh) +40 +35 OMV indicator refining margin (USD +1/bbl) +105 +80 Ethylene/propylene net margin (EUR +10/t) +15 +10 EUR-USD (USD appreci