Slide 1: OMV results Q2/10
OMV Aktiengesellschaft OMV results Q2/10 Wolfgang Ruttenstorfer, Chief Executive Officer August 4, 2010 Move & More.
Slide 2: 6m/10: Improving environment supports results
6m/10: Improving environment supports results Oil price increase, stronger USD and better refining margins drive results Clean CCS EBIT up by 159% to EUR 1,271 mn compared to 6m/09 Clean CCS net income after minorities improved by 178% to EUR 611 mn Cash flow from operations up 19% to EUR 1,
Slide 3: Strategic achievements 6m/10
Strategic achievements 6m/10 Portfolio development towards sustainability and profitability E&P: First production enhancement contract signed in Romania; successful exploration wells in Tunisia and Pakistan R&M: Optimization of retail stations network (e.g. exit retail business in Italy); sale
Slide 4: Achievements support implementation of OMV's 3plus strategy
Achievements support implementation of OMV‘s 3plus strategy 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 expansion of the business portfolio towards sus
Slide 5: Results Q2/10
OMV Aktiengesellschaft Results Q2/10 David C. Davies, Chief Financial Officer Move & More.
Slide 6: Solid result in improving environment
Solid result in improving environment Oil price increase and stronger USD drive improved results Average oil price in Q2/10 USD 78.24/bbl, 32% above Q2/09 (USD 59.13/bbl) and 2% above Q1/10 levels (USD 76.36/bbl) OMV refining margins improved compared to Q1/10 and Q2/09 Q2/10 production at 3
Slide 7: Results for Q2/10
Results for Q2/10 ∆ ∆ Q1/10 Q2/10 Q2/09 in EUR mn 6m/10 6m/09 Q2/09 6m/09 710 647 237 173% EBIT 1,357 503 170% (13) (2) (7) (72)% Financial result (15) (96) (85)% (241) (220) (74) 199% Taxes (462) (163) 183% 35% 34% 32% 6% Effective tax rate 34% 40% (14)% 456 424 156 173% Net income (NIAT) 881 245 n
Slide 8: Cash flow
Cash flow Q1/10 Q2/10 Q2/09 in EUR mn 6m/10 6m/09 Q2/09 6m/09 456 424 156 173% Net income 881 245 n.m. 287 387 323 20% Depreciation and amortisation 674 599 13% (12) (231) (61) n.m. Other (244) (28) n.m. 732 580 417 39% Sources of funds 1,311 816 61% 16 185 (61) n.m. Change in net working capita
Slide 9: Gearing ratio development
Gearing ratio development 40 Gearing ratio (net debt / equity) Gearing ratio target < 30% 35 33 in % 31 30 29 29 28 25 20 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Maintaining a strong investment grade rating remains key priority 9 | OMV Group, Q2/10
Slide 10: CAPEX and EBITD
CAPEX and EBITD CAPEX EBITD Q2/10: EUR 496 mn Q2/10: EUR 1,033 mn 6m/10: EUR 856 mn 6m/10: EUR 2,031 mn 1,600 1,501 1,400 Capex 6m/10 1,200 EBITD 6m/10 1,000 800 600 504 381 348 400 200 104 119 22 0 (38) (54) (200) E&P R&M G&P Co&O Consolidation 10 | OMV Group, Q2/10
Slide 11: Special items
Special items Q1/10 Q2/10 Q2/09 in EUR mn 6m/10 6m/09 710 647 237 Reported EBIT 1,357 503 (3) (3) (2) Personnel related costs (6) (2) 0 (61) (29) Unscheduled depreciation (61) (30) 19 1 1 Asset disposals 20 11 1 3 (21) Other 4 (22) 16 (59) (51) Total special items (43) (43) 694 706 288 Clean EBIT 1,
Slide 12: Clean CCS EBIT Q2/10
Clean CCS EBIT Q2/10 OMV Group clean CCS EBIT Q2/10: EUR 623 mn (Q2/09: EUR 151 mn) 800 Q2/09 Q2/10 623 600 560 400 276 200 151 120 49 19 0 (23) (24) (49) (50) (103) (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 Q2/09 Q2/10 Q2/09
Slide 13: Economic environment
Economic environment 120% 800 100% 700 80% 60% 600 40% 500 EUR mn 20% 400 0% (20)% 300 (40)% 200 (60)% 100 (80)% (100)% 0 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Clean CCS EBIT in EUR mn (right hand scale) Regulated domestic gas price for producers (USD) Average Brent price OMV indicator refining margin Q1/10
Slide 14: Exchange rate development
Exchange rate development 15% 10% 5% 0% (5)% (10)% (15)% Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 EUR-USD EUR-RON USD-RON Q2/10 Q2/09 Q2/09 Average EUR-USD FX-rate 1.271 1.362 (7)% Average EUR-RON FX-rate 4.185 4.196 0% Average USD-RON FX-rate 3.301 3.081 7% 14 | OMV Group, Q2/10
Slide 15: Group E&P: Strong EBIT supported by a stronger oil price
Group E&P: Strong EBIT supported by a stronger oil price Significant year-on-year increase in oil price supported Q2/10 results; a stronger USD further underpinned this positive effect Production volumes above Q2/09 level: Significantly higher volumes from Libya, New Zealand and Kazakhstan more
Slide 16: Petrom E&P: Q2/10 results on a comparable level to Q1/10
Petrom E&P: Q2/10 results on a comparable level to Q1/10 Higher contribution from Petrom offshore production (LVO4 and Delta 6) and the Komsomolskoe field in Kazakhstan helped offset the natural decline in oil production OPEX at Petrom burdened by negative volume effects, partly offset by positi
Slide 17: Hedging to secure cash flow in period of weaker operating conditions in 2010
Hedging to secure cash flow in period of weaker operating conditions in 2010 Oil price hedging for 63,000 bbl/d hedged for 2010 with a zero cost structure 160 140 120 100 80 60 40 20 0 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 125 130 USD 54.2/bbl no effect upside above secured
Slide 18: Group G&P: Supply, marketing and trading heavily burdened by depressed margin environment
Group G&P: Supply, marketing and trading heavily burdened by depressed margin environment Gas sales margins heavily under pressure as spot prices remained significantly below long-term gas prices Gas sales volumes significantly above Q2/09 levels; 96% higher volumes at EconGas mainly due to whol
Slide 19: Petrom G&P: Result burdened by lower margins
Petrom G&P: Result burdened by lower margins Sales volumes at Petrom slightly increased compared to Q2/09, but result burdened by lower margins as Petrom profited from quantities extracted from storage in Q2/09 Increased provisions for outstanding receivables burdened results Import price in U
Slide 20: Refining and Marketing
OMV Aktiengesellschaft Refining and Marketing Gerhard Roiss, Deputy Chairman of the Executive Board responsible for R&M Move & More.
Slide 21: Group R&M: Improved refining results in a still challenging environment
Group R&M: Improved refining results in a still challenging environment, Marketing affected by weak demand Successful completion of two planned month-long maintenance turnarounds in Petrobrazi and Schwechat in time and in budget with no lost time incidents registered Refining margin improved but
Slide 22: Petrom R&M: Arpechim stop-and-go mode and cost savings
Petrom R&M: Arpechim stop-and-go mode and cost savings lead to positive Petrom result Arpechim refinery was operated in stop-and-go mode; operations halted again since early June Restructuring Petrobrazi on track (Total investment: EUR 750 mn) Petrom Marketing affected by declining sales volum
Slide 23: Borealis again shows solid performance due to improved petrochemicals environment
Borealis again shows solid performance due to improved petrochemicals environment Market environment stabilizing with improved industry margins vs. previous year Polyolefin industry margin Q2/10: EUR 178/t vs. EUR 98/t in Q2/09 Continuing cost saving and restructuring initiatives strengthen Euro
Slide 24: Market leader (20% market share) in Central and Southeastern Europe
Market leader (20% market share) in Central and Southeastern Europe Efficient, streamlined western refineries / investment program completed Petrochemical operation with strong integration with Borealis Integration in own crude production (AT, RO) 20% market share in CEE/SEE (Central Eastern
Slide 25: Refining margin collapsed, recovery not expected unless refineries close down
Refining margin collapsed, recovery not expected unless refineries close down Refining margins (USD/bbl) and Depressed product demand – slight utilization rates (%) – Europe recovery to “down cycle” level seen Recovered oil price – stabilized at 90% 91% 90% 87% comfortable level 89% 90% 87% Hi
Slide 26: Long-term outlook not likely to ease current situation
Long-term outlook not likely to ease current situation – three main challenges ahead Declining product demand in EU 27: (8)% by 2020 Mobility increase (~+12%), however: Biofuels substitution (~ further (2)%) Efficiency increase (~(18)%) New market entrants Russian companies moving West Mid
Slide 27: OMV focus on European growth regions
OMV focus on European growth regions Product demand in mn t OMV regions (examples): EU 27: (8)% Romania: +12% Turkey: +30% (8)% 30% 665 665 614 614 38 12% 29 9 10 10 2009 2020 2009 2020 2009 2020 Source: JBC April 2010; all products incl. biofuels 27 | OMV Group, Q2/10
Slide 28: The leading R&M company in Danube/Black Sea Region
The leading R&M company in Danube/Black Sea Region R&M market E&P activities Austria, Romania and Slovakia have both E&P and R&M activities Vision 2015 Highly integrated downstream player with ... … streamlined refining assets, … … consolidated and optimized marketing business 28 | OMV Group,
Slide 29: R&M: Streamline existing business and strengthen integrated position in growth markets
R&M: Streamline existing business and strengthen integrated position in growth markets Strategic thrust R&M actions Finalize Petrom restructuring Cost reduction Improve efficiency of western refineries (site synergies) Streamline Refining and Marketing organization Divest non core assets in
Slide 30: One third of fixed costs to be saved within 5 years
~ One third of fixed costs to be saved within 5 years 1 – cost management as of 6m/10 well on track Clean fixed cost excl. depreciation Finalize Petrom restructuring Refining: Centralize functions and utilize (31)% synergies between sites and with Borealis Restructure marketing organization an
Slide 31: Petrom restructuring: Petrobrazi refinery operated as upstream integrated refinery
Petrom restructuring: Petrobrazi refinery operated as upstream integrated refinery Maximize Petrobrazi integration value by conversion of Romanian crude only Petrobrazi modernization: Streamline refining nameplate capacity to process ~ 4 mn t/y domestic crude Install thermal cracker and bitume
Slide 32: Retail: High quality assets with premium brand and quality leadership
Retail: High quality assets with premium brand and quality leadership in oil and non-oil services Fuels/Mobility Convenience/Gastro Expanded service offer Strong brand and quality Successful launch of Consolidation of existing network Sale of 99 filling stations in Italy by leadership in non-o
Slide 33: Turkey: Strengthen integrated downstream position in growth market
Turkey: Strengthen integrated downstream position in growth market Turkey: 3rd integrated regional hub Fastest growing market in Europe with volume growth of 30% by 2020 Kazakhstan 60% of population < 35 years Car density/1,000 inhabitants: 96 (EU27: 487) CPC Petrol Ofisi: Clear market leade
Slide 34: R&M Outlook
R&M Outlook Maintain 20% market share in core market Streamline refining capacity by (15)% Keep market coverage in refining countries Deliver one third fixed cost savings by 2012 and keep further focus on cost/complexity reduction Optimize retail network and concentrate on qualitative grow
Slide 35: Outlook
OMV Aktiengesellschaft Outlook Wolfgang Ruttenstorfer, Chief Executive Officer Move & More.
Slide 36: Outlook 2010
Outlook 2010 In E&P, production is expected to increase, supported by substantial workover campaigns in Romania, Austria and New Zealand Refining margins will remain the key challenge Short-term gas prices still under pressure; major G&P projects proceeding further in 2010 Petrom restructuri
Slide 37: 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 38: 38 | OMV Group, Q2/10
38 | OMV Group, Q2/10