Slide 1: OMV results Q4/10
OMV Aktiengesellschaft OMV results Q4/10 Wolfgang Ruttenstorfer, Chief Executive Officer February 23, 2011 Move & More.
Slide 2: Financial results 2010
Financial results 2010 Oil price increase, stronger USD and better refining margins drive results Clean CCS EBIT up by 74% to EUR 2,470 mn compared to 2009 Clean CCS net income after minorities improved by 88% to EUR 1,118 mn Cash flow from operations up 56% to EUR 2,886 mn CAPEX of EUR 3,
Slide 3: Strategic achievements 2010
Strategic achievements 2010 Stake in Petrol Ofisi increased to 95.72%, thereby significantly increasing our exposure in Turkey E&P acquisitions/divestments Pakistan: Contract to buy E&P assets from Petronas signed in Q3/10 Tunisia: Acquisition of Pioneer’s E&P subsidiaries closed in February
Slide 4: OMV's vision is to be the leading energy provider in the European growth belt
OMV’s vision is to be the leading energy provider in the European growth belt The OMV 3plus strategy: Combination of our 3 strengths leads to sustainable growth 3 markets - PLUS supply regions strengthening market position (and vice-versa) 3 business segments - PLUS synergies through leveraging
Slide 5: Results Q4/10
Results Q4/10 David C. Davies, CFO 5 | OMV Group, Q4/10 Move & More.
Slide 6: Recovering environment drives strong results
Recovering environment drives strong results Oil price increase and improved refining margins drive improved clean results Average oil price in Q4/10 USD 86.46/bbl, 16% above Q4 last year (USD 74.53/bbl), and above Q3/10 levels (USD 76.86/bbl) Q4/10 production at 320,000 boe/d OMV refining m
Slide 7: Results for Q4/10
Results for Q4/10 Q3/10 Q4/10 Q4/09 Q4/09 in EUR mn 2010 2009 2009 395 582 354 64% EBIT 2,334 1,410 66% (112) (247) (112) 120% Financial result (373) (228) 64% (146) (139) (131) 7% Taxes (747) (465) 61% 51% 42% 54% (23)% Effective tax rate 38% 39% (3)% 138 195 111 76% Net income (NIAT) 1,214 717
Slide 8: Cash flow
Cash flow Q3/10 Q4/10 Q4/09 in EUR mn 2010 2009 Q4/09 2009 138 195 111 76% Net income 1,214 717 69% 529 375 395 (5)% Depreciation and amortisation 1,578 1,325 19% 127 299 90 n.m. Other 182 (38) n.m. 793 869 595 46% Sources of funds 2,974 2,004 48% (324) 35 (194) n.m. Change in net working capita
Slide 9: Gearing ratio development
Gearing ratio development 50 Gearing ratio (net debt / equity) Gearing ratio target < 30% 40 46 33 30 in % 29 29 30 20 10 0 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Maintaining a strong investment grade rating remains key priority Group currently assessing best refinancing option for Petrol Ofisi 9 | OMV G
Slide 10: CAPEX and EBITD
CAPEX and EBITD CAPEX EBITD Q4/10: EUR 1,767 mn Q4/10: EUR 950 mn 2010: EUR 3,207 mn 2010: EUR 3,899 mn 3,500 2,888 3,000 Capex 2010 EBITD 2010 2,500 2,000 1,394 1,500 1,152 1,000 812 612 500 307 49 0 (80) (28) (500) E&P R&M G&P Co&O Consolidation 10 | OMV Group, Q4/10
Slide 11: Special items
Special items Q3/10 Q4/10 Q4/09 in EUR mn 2010 2009 395 582 354 Reported EBIT 2,334 1,410 (57) (39) (48) Personnel related costs (101) (54) (200) 3 (77) Unscheduled write-ups/(depreciation) (258) (119) 4 8 9 Asset disposals 32 22 (0) 1 (7) Other 4 (29) (253) (27) (123) Total special items (323) (180
Slide 12: Clean CCS EBIT Q4/10
Clean CCS EBIT Q4/10 OMV Group clean CCS EBIT Q4/10: EUR 567 mn (Q4/09: EUR 413 mn) 800 Q4/09 Q4/10 600 567 512 461 413 400 200 129 75 63 0 (46) (29) (39) (18) (126) (200) E&P R&M G&P Co&O Consolidation Total thereof Petrom group clean CCS EBIT: E&P R&M G&P Co&O Consolidation Total Q4/09 Q4/10 Q4/09
Slide 13: Economic environment
Economic environment 647 623 632 20% 4.00 567 15% 10% 3.00 413 5% in USD/bbl 0% 2.00 (5)% (10)% 1.00 (15)% (20)% 0.00 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Regulated domestic gas price for producers (USD) (lhs) Average Brent price (lhs) OMV indicator refining margin (rhs) Clean CCS EBIT in EUR mn Q3/10 Q4/1
Slide 14: Exchange rate development
Exchange rate development Q4/10 Q4/09 Average EUR-USD FX-rate 1.358 1.478 (8)% Average USD-TRY FX-rate 1.465 1.491 (2)% OMV Group has two significant FX-exposures: EUR-USD: Oil price is denominated in USD. A stronger USD is therefore favourable for the results. USD-TRY: Petrol Ofisi has a net
Slide 15: Group E&P: EBIT burdened by lower sales volumes and negative hedging impact
Group E&P: EBIT burdened by lower sales volumes and a negative hedging impact compared to Q4/09 Favourable oil price environment and a stronger USD support Q4/10 results Sales volumes lower than in Q4/09 mainly due to Austria, Romania and Libya Higher production volumes from Kazakhstan and the
Slide 16: Petrom E&P: Q4/10 results supported by higher oil price and stronger USD
Petrom E&P: Q4/10 results supported by higher oil price and stronger USD Slightly higher oil price and positive FX effects due to stronger USD support Q4/10 results Production figures slightly below Q4/09 level. Kazakhstan partially helped to offset the natural decline in oil production in Roman
Slide 17: Hedging to secure cash flow in period of weaker operating conditions
Hedging to secure cash flow in period of weaker operating conditions in 2010 and 2011 For 2010: Oil price hedging for 63,000 bbl/d with a zero cost structure, securing a price floor of USD 54/bbl via the sale of a price cap of USD 75/bbl Total P&L effect in Q4/10 EUR (45) mn Total P&L effect f
Slide 18: Group R&M: Improved refining margin environment, burdened by one-off costs
Group R&M: Improved refining margin environment, however result burdened by one-off costs OMV indicator refining margin significantly above previous year Petrochemical environment better than in Q4/09, however with a downward trend towards year-end Solid marketing performance impacted by Hunga
Slide 19: Petrom R&M: Restructuring costs offset improved operating performance
Petrom R&M: Restructuring costs offset improved operating performance Improved refining margin environment had positive effects on the result Arpechim operations remained offline for the whole quarter Write-offs of storage tanks and spare parts mainly at the site of Arpechim negatively affecte
Slide 20: Group G&P: Strong logistic business, higher volumes
Group G&P: Strong logistic business, higher volumes and successful supply negotiations in Supply, Marketing and Trading Gas sales volumes at EconGas increased significantly compared to Q4/09, mainly driven by higher wholesale quantities Successful supply negotiations reduced the pressure on marg
Slide 21: Petrom G&P: Result favoured by increased sales volumes
Petrom G&P: Result favoured by increased sales volumes and positive effect from the release of provisions Sales volumes at Petrom increased by 15% compared to Q4/09, mainly driven by the strong demand of the fertilizer industry Petrom also benefited from the reversal of provisions for outstandin
Slide 22: Exploration and Production
OMV Aktiengesellschaft Exploration and Production Jaap Huijskes, Member of the Executive Board responsible for E&P Move & More.
Slide 23: OMV E&P exposure: Two core countries and a balanced international portfolio
OMV E&P exposure: Two core countries and a balanced international portfolio Production in 2010 32% 55% Romania 13% Austria International portfolio 23 | OMV Group, Q4/10
Slide 24: Health, safety, security and environment is the first priority
Health, safety, security and environment is the first priority HSE performance 2010 Lost Time Injury (LTI) rate at 0.8 vs. 0.9 in 2009 LTI rate LTI rate declining over the year OMV regrets the occurrence of four fatalities during 2010 2005 2006 2007 2008 2009 2010 24 | OMV Group, Q4/10
Slide 25: Major achievements and highlights in 2010
Major achievements and highlights in 2010 Significant increase in clean EBIT Acquisition of Petronas’ assets in Pakistan +38% in OMV E&P Acquisition of Pioneer’s subsidiaries in Clean EBIT in EUR mn 2,099 Tunisia (closed on February 18, 2011) 1,517 Two exploration successes in blocks Sarta and
Slide 26: OMV Group: Production trend
OMV Group: Production trend 2010 production: 324 321 317 317 318 Romania managed to keep the 86 89 91 95 102 decline rate low Production in kboe/d Austria production increased mainly due to higher workover activities 239 232 226 221 216 International portfolio production grew almost 7% Start
Slide 27: OMV Group: Proved and probable reserves development
OMV Group: Proved and probable reserves development 1,289 1,216 1,206 1,188 1,153 3-years average reserve 1P reserves in mn boe 236 210 229 240 231 replacement rates (RRR): 1,054 OMV Group: 82% (2009: 71%) 1,006 976 948 922 Romania and Austria: 66% 2006 2007 2008 2009 2010 International portfo
Slide 28: OMV Group: Production costs and CAPEX
OMV Group: Production costs and CAPEX 14.3 13.2 12.8 11.1 12.0 Production costs (OPEX) 2010: OPEX in USD/boe OPEX up by 6.7% vs. 2009 to USD 12.8/boe Mainly due to change in calculation method (exclusion 2006 2007 2008 2009 2010 of own consumption) and increase in service costs 2,328 Capital exp
Slide 29: Strategic growth framework
Strategic growth framework Exploiting the core: Romania Austria "Exploit the core" Growing to and beyond Romania Austria critical mass: E.g. via acquisitions in "Grow to and Pakistan and Tunisia "Find new beyond critical growth areas" mass" Current Future portfolio Finding new growth areas: po
Slide 30: Romania – Focus on field redevelopments and water injection
Romania – Focus on field redevelopments and water injection Amount of CAPEX assigned to FRD will be increased Seven field redevelopment (FRD) 2010 2011 - 2015 projects addressing eighth major reservoirs with total 2% 20% Hydrocarbon Initial In Place (HIIP) of 2.7 bn boe 98% 80% Expected ~5% addi
Slide 31: Austria – Enhancing the recovery rate
Austria – Enhancing the recovery rate Production increase in 2010 Water injector Oil producer by 4% to 42,000 boe/d due to: Higher workover activities Increased well performance Operations Excellence program initiated 8th Torton Horizon in Matzen field Successful pattern water flood test 25
Slide 32: Projects in the pipeline
Projects in the pipeline Field . New . New Ventures Exploration Appraisal development production Caspian Kurdistan Region Tunisia Seven field New Pakistan / Middle East of Iraq (KRI) West of Shetland redevelopments Tunisia assets North Africa Black Sea (UK) (Romania) Norway Kultuk (Kazakhstan) Habba
Slide 33: Pakistan – Acquisition of Petronas' assets in Pakistan
Pakistan – Acquisition of Petronas’ assets in Pakistan Licenses before deal Acquired licenses Sale and purchase agreement signed Closing expected in H1/11 Expected total OMV production in Pakistan in 2014 of approx. 25,000 boe/d 33 | OMV Group, Q4/10
Slide 34: Tunisia – Acquisition of Pioneer's subsidiaries
Tunisia – Acquisition of Pioneer’s subsidiaries Jenein Sud/Nawara development: Completion of exploration campaign in the Nawara Production Concession OMV Block Onshore Proved enough volume to start Pioneer Block Onshore the South Tunisian Gas Pipeline (STGP) project Acquisition of Pioneer’s asse
Slide 35: Kurdistan Region of Iraq – Acquired additional blocks and successful discoveries
Kurdistan Region of Iraq – Acquired additional blocks and successful discoveries Three blocks acquired Now present in five blocks; in three as operator Two exploration successes in blocks Rovi and Sarta 1 *under negotiations Pearl Petroleum Ltd. (OMV share 10%) Khor Mor: Ramping up gross pro
Slide 36: Exploration potential at Black Sea being evaluated
Exploration potential at Black Sea being evaluated Neptun block: OMV Petrom/ExxonMobil 50:50 Neptun block offshore Romania joint venture Block area of approx. 9,900 km² Water depths ranging from Neptun 50m -1,700m Block 2010 activities: Processing of the Neptun 3D seismic completed Interpr
Slide 37: Nabucco and upstream gas supply
Nabucco and upstream gas supply Nabucco achievements Signature and ratification of Intergovernmental Agreement Exemptions from European Energy Law obtained Azerbaijan Detailed engineering ongoing Turkmenistan Start of the environmental Iraq and social impact assessments European Commission
Slide 38: Global resources + cutting-edge technologies = solution
Global resources + cutting-edge technologies = solution Mature fields Reaching high ultimate recovery rates Applying a wide range of Enhanced Oil Recovery (EOR) Experienced in corrosion control and produced water handling Complex developments Successful sour gas developments Extended reach
Slide 39: Outlook
OMV Aktiengesellschaft Outlook Wolfgang Ruttenstorfer, Chief Executive Officer Move & More.
Slide 40: Outlook 2011
Outlook 2011 In E&P, production level (without recent acquisitions) is expected to stay at a similar level as in 2010 In R&M, petrochemical and marketing margins will remain challenging while a slight recovery is expected for bulk margins In G&P, the power plant in Romania will start operation
Slide 41: …and a look back: OMV 2001-2010
…and a look back: OMV 2001-2010 2001 2010 Total production in boe/d 78,000 318,000 Oil production in mn bbl 19.8 63.4 Gas production in bcf 52.3 295.1 P1 reserves in mn boe 340 1,153 Refining capacity in bbl/d 270,000 530,000 Number of filling stations 1,160 2,291 1 Gas sales in bcm 7 18 Reported EB
Slide 42: Disclaimer
Disclaimer This document does not constitute 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 or commitment whatsoever. This document is being furnished to you
Slide 43: 43 | OMV Group, Q4/10
43 | OMV Group, Q4/10