Mol Hungarian Oil & Gas Plc Class A · BET:MOL
Mol Hungarian Oil & Gas Plc Class A — MOL Group — Investor Presentation (March 2012)
67 slides from Mol Hungarian Oil & Gas Plc Class A's investor presentation, March 2012
Slide 1: Investor Presentation March 2012
INVESTOR PRESENTATION March 2012
Slide 2: 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 3: Key Figures
KEY FIGURES bn USD EBITDA generation in 2011 (+18%), 3 >70% from Upstream, >50% from international operation over organic reserve replacement rate in last year 200% 2P reserves at 682 MMboe* Bboe Recoverable Resource Potential (WI) in 11 countries 1.4 more than 50% in Kurdistan 9 wells to be drilled
Slide 4: Upstream-driven, integrated company
UPSTREAM-DRIVEN, INTEGRATED COMPANY Over 50% international contribution to USD 3bn EBITDA in 2011 REGION EBITDA 2011 DATA 2011 GROWTH DRIVERS & COMPETITIVE ADVANTAGE ► 682 Mmboe* SPE 2P ► Field development driven growth in short reserves term (RUS) Upstream ► 219%* organic reserve ► Transforming of
Slide 5: Over 200% RRR: MMboe reserves booked in 2011
OVER 200% RRR: 117 MMBOE RESERVES* BOOKED IN 2011 Broader set of core countries – Russia, Kazakhstan Breakdown of reserves** Breakdown of reserves increase in 2011 (MMboe) 140 682 MMboe 120 100 80 60 40 682 20 Executive summary MMboe 0 Hungary Croatia Russia Syria Pakistan, Kazakhstan Total Egypt, A
Slide 6: 2012 production without Syrian contribution
2012 PRODUCTION: 121 MBOEPD WITHOUT SYRIAN CONTRIBUTION 3-4% production growth from 2014 Total hydrocarbon production* by countries (mboepd) Total hydrocarbon production by products (mboepd) 150 150 100 100 50 50 0 Executive summary - 2012 2013 2014 2012 2013 2014 Oil Gas Condensate Hungary Croatia
Slide 7: Additional reserve growth from 1.4 Bboe resource
ADDITIONAL RESERVE GROWTH FROM 1.4 BBOE RESOURCE* Supporting long term growth Recoverable Resource Potential, WI (MMboe), SPE 2P** SPE 2P reserves (MMboe) – 2012-2014*** 1800 900 1500 1200 600 900 600 300 300 Executive summary 0 0 SPE 2P RRP 2P Reserves (2011) Expected Reserve addition production ex
Slide 8: Company-maker potential in Kurdistan Region of Iraq
COMPANY-MAKER POTENTIAL IN KURDISTAN REGION OF IRAQ 2 exploration and 7 appraisal wells in 2012-2013 in two blocks Block Fully diluted WI Operator Partner Akri-Bijeel 51.2% MOL GKP Shaikan 13.6% GKP MOL ► Intensified exploration and appraisal program to fully explore block potential Executive summar
Slide 9: Russia, Kazakhstan – unrecognised value
RUSSIA, KAZAKHSTAN – UNRECOGNISED VALUE Largest contributors to short and mid-term production growth Largest contributors Fedorovsky Block (in 2011) SPE 2P Reserves (MMboe) - WI 186 SPE 2P Reserves (MMboe) - WI 37 Recoverable resource potential* (MMboe) 235 Recoverable resource potential* (MMboe) 10
Slide 10: Challenging refinery environment
CHALLENGING REFINERY ENVIRONMENT …only gradual improvement expected CHALLENGES EXPECTED DEVELOPMENTS USD/bbl Crude oil price 150 ► We expect oil to stay on similar ► Surging crude oil price increased 100 costs on own consumption & loss levels also in mid-term 50 dramatically 0 2005 2012 Brent DTD cr
Slide 11: Demand suffers from economic crisis, but...
DEMAND SUFFERS FROM ECONOMIC CRISIS, BUT… …long term growth potential remains in the region SHORT TERM CRISIS EFFECT LONG TERM POTENTIAL REMAINS in % Gasoline demand change Car penetration curve Cars per 1,000 inhabitant 800 15 700 Italy ► Regional car France 10 600 Germany penetration is still 500
Slide 12: Increase efficiency and improve profitability
INCREASE EFFICIENCY AND IMPROVE PROFITABILITY …by optimization of assets and processes on Group level I.) Value Chain Optimization Reinforce Regional ► Improved crude selection Downstream by utilising all ► On demand production in refineries synergies of integrated ► Maintain petrochemical integrati
Slide 13: Further strengthened financial position
FURTHER STRENGTHENED FINANCIAL POSITION Fitch reinforced the investment grade credit rating Covenants Gearing (%) USD bn 40 3 3,5 3 35 2,5 2,5 2 2 30 1,5 1 1,5 25 0,5 1 0 20 2 008 2 009 2 010 2 011 2008 2009 2010 2011 EBITDA Net debt to EBITDA Executive summary Gearing Keep covenants and gearing in
Slide 14: 2012-2014 capex fully financed from operating CF
2012-2014 CAPEX SHOULD BE FULLY FINANCED FROM OPERATING CF Up to annual USD 2 bn CAPEX spending GROUP* 2012-2014 ► Kurdistan, Iraq: Akri-Bijeel and Shaikan blocks ► Russia: Baitex and Matjushkinsky blocks Upstream 21% ► Kazakhstan: Fedorovsky block Key organic growth projects 4% 50% ► Hungarian conv
Slide 15: MOL is committed to sustainable development
MOL is committed to Sustainable Development SUSTAINABILITY IS A TOP PRIORITY IN MOL GROUP The only CEE company in Dow Jones Sustainability Index Climate Change Top 20% position taken among European refineries in CO2-efficiency* Health & Safety 44% decrease in lost-time injury frequency (LTIF) since
Slide 16: Exploration and Production
EXPLORATION AND PRODUCTION Focus on exploration and active portfolio management Upstream 16
Slide 17: Upstream – years of experience and exploration success rate
UPSTREAM – 75 YEARS EXPERIENCE AND OUTSTANDING EXPLORATION SUCCESS RATE Competitive advantages KEY STRENGTHS TO BUILD UPON OUTSTANDING EXPLORATION SUCCESS RATE (2009-2011) No. of wells ► Promising E&P portfolio 35 30 ► Organic growth on existing exploration portfolio 25 67% ► Proven track record in
Slide 18: Production activities in countries
PRODUCTION ACTIVITIES IN 8 COUNTRIES Provide a good basis for the next three years CEE total Production: 147.4 mboepd Syria Reserves: 682 MMboe Reserves: 37 MMboe Croatia, Hungary Reserves: 405 MMboe Production: 20.3 mboepd Production: 99.6 mboepd o/w CEE offshore Pakistan Reserves: 44 MMboe Reserve
Slide 19: 1.4 Bboe exploration potential of current assets
1.4 BBOE* EXPLORATION POTENTIAL OF CURRENT ASSETS to secure organic mid-term growth CEE onshore, offshore, Russia unconventional 245 280 Matjushkinskiy, Surgut-7, Hungary, Croatia, Romania Baitex Blocks Kazakhstan Fedorovskoye Block Pakistan Kurdistan Region of Iraq 40 725 Tal, Karak, Margala & Akri
Slide 20: Upstream – positioning as a strong growth pillar
UPSTREAM - POSITIONING AS A STRONG GROWTH PILLAR OF MOL GROUP Exploration-led strategy, increasing reserve and maintaining production at elevated levels I.) Dynamic exploration strategy IV.) Active management of the ► Competency based target setting portfolio ► Most of our existing prospects will be
Slide 21: Over 200% RRR: MMboe reserves booked in 2011
OVER 200% RRR: 117 MMBOE RESERVES* BOOKED IN 2011 Broader set of core countries – Russia, Kazakhstan Breakdown of reserves** Breakdown of reserves** increase in 2011 (MMboe) 140 682 MMboe 120 100 80 60 40 682 20 MMboe 0 Hungary Croatia Russia Syria Pakistan, Kazakhstan Total Egypt, Upstream Angola *
Slide 22: 2012 production without Syrian contribution
2012 PRODUCTION: 121 MBOEPD WITHOUT SYRIAN CONTRIBUTION 3-4% production growth from 2014 Total hydrocarbon production* by countries (mboepd) Total hydrocarbon production by products (mboepd) 150 150 100 100 50 50 0 - 2012 2013 2014 2012 2013 2014 Oil Gas Condensate Hungary Croatia Russia Other inter
Slide 23: Additional reserve growth from 1.4 Bboe resource
ADDITIONAL RESERVE GROWTH FROM 1.4 BBOE RESOURCE* Supporting long term growth Recoverable Resource Potential, WI (MMboe), SPE 2P** SPE 2P reserves (MMboe) – 2012-2014*** 1800 900 1500 1200 600 900 600 300 300 0 0 SPE 2P RRP 2P Reserves (2011) Expected Reserve addition production expectation Upstream
Slide 24: Key upstream projects
KEY UPSTREAM PROJECTS Upstream 24
Slide 25: Kurdistan Region of Iraq – underexplored prolific oil province
KURDISTAN REGION OF IRAQ - AN UNDEREXPLORED PROLIFIC OIL PROVINCE With improving political environment I.) Underexplored area Kurdistan Region of Iraq ► US Geological Society estimated 40 bn boe oil and 60 Tcf gas in 2010 ► Several undrilled anticlines II.) Competitive access to world-class resource
Slide 26: Potential company-maker with large resource potential
POTENTIAL COMPANY- MAKER WITH LARGE RESOURCE POTENTIAL of 725 MMboe ENTERING THE KURDISTAN REGION OF IRAQ IN 2007 Kurdistan Region of Iraq ► MOL has interest in four blocks ► Two major discoveries in recent years INTENSIVE APPRAISAL PROGRAM TO EXPLORE THE BLOCKS’ POTENTIAL ► Akri-Bijeel: two explora
Slide 27: Two major discoveries in the last years
TWO MAJOR DISCOVERIES IN THE LAST YEARS Shaikan and Akri Bijeel HIGHLIGHTS Kurdistan Region of Iraq ► In 2010 the Bijell-1 exploratory well showed very promising case hole test results from Jurassic formations with a daily test production of 3,700 barrels of oil and 100 boe of gas, which gave the Gr
Slide 28: Intensive work program planned for 2012-2013
INTENSIVE WORK PROGRAM IS PLANNED FOR 2012-2013 to derisk full block potential HIGHLIGHTS Kurdistan Region of Iraq ► 2 exploration wells and 7 appraisal wells planned to start drilling in 2012-2013 in two blocks. ► Significant 3D seismic acquisition in Akri-Bijeel over the Bijell discovery area. ► A
Slide 29: Planned work program for 2012
Kurdistan Region of Iraq Upstream 29 PLANNED WORK PROGRAM FOR 2012
Slide 30: Structure of production sharing agreement
STRUCTURE OF PRODUCTION SHARING AGREEMENT Kurdistan Region of Iraq Schematic of Production sharing at Akri-Bijeel Block Schematic of Production sharing at Shaikan Block Oil produced Oil produced Royalty Oil Royalty Oil 10% of total Crude oil 10% of total Crude oil 43% Available crude Oil 40% Availab
Slide 31: Russia – core country with short and mid term production growth
RUSSIA – CORE COUNTRY WITH SHORT AND MID TERM PRODUCTION GROWTH Intensive work program in the coming years EXPERIENCES ► Primary target region: Volga-Ural, Western Siberia ►10 years experience ensures technical capability in field development-rejuvenation and exploration Russia FOUR BLOCKS IN DIFFER
Slide 32: Matjushkinsky Block and Baitex Block
MATJUSHKINSKY BLOCK BAITEX BLOCK Exploration upside: 7-10 prospects Significant reserves accessible for production Legend Oil field Block boundary Russia Oil pipeline Russia Gas pipeline Transneft pipeline The Komalka river Road Baitugan OTU Baitugan Field The Baltugan 0 10 20 30 40 50km river 0 10
Slide 33: Matjushinsky Block and Baitex Block
MATJUSHINSKY BLOCK BAITEX BLOCK Exploration upside: 7-10 prospects Significant reserves accessible for production COMPLEX BLOCK INTENSIVE DEVELOPMENT RESULTED RESERVES BOOKING ► Sizeable acreage ► An intense construction and investment program was launched in 2007 ► Producing assets: 46 production a
Slide 34: Kazakhstan – unrecognised value in the upstream portfolio
KAZAKHSTAN – UNRECOGNISED VALUE IN THE UPSTREAM PORTFOLIO Significant reserve booking at the end of 2011 MAJOR DISCOVERY IN 2008 Exploration wells gas Condensate Total (100%) U-10 ~1,900 boepd ~2,100 boepd 4,000 boepd Kazakhstan U-12 ~1,700 boepd ~2,400 boepd 4,100 boepd ► Wells proven multiple gas
Slide 35: Start of early production expected in 2015
START OF EARLY PRODUCTION IS EXPECTED IN 2015 Following a drilling campaign in the next years ► Focus both on drilling appraisal wells and development for early production phase ► 2012-2013: Drilling 3 appraisal wells, testing 6 wells Kazakhstan ► 2014: 5 wells completion ► The start of the early pr
Slide 36: Pakistan – intensive simultaneous activity
PAKISTAN – INTENSIVE SIMULTANEOUS ACTIVITY FROM EXPLORATION TO PRODUCTION Outstanding exploration success over the last 11 years TAL BLOCK ► The aim is to continue appraisal activity on recent discoveries (MamiKhel, Maramzai, Makori East and Pakistan Tolanj) and to continue exploration of remaining
Slide 37: Ensures reserve and production growth in next three years
ENSURES RESERVE AND PRODUCTION GROWTH IN THE NEXT THREE YEARS MOL has acquired noticeable operation experience HIGHLIGHTS ► 6 significant discoveries since 1999 ► Production started only two years after the first discovery Pakistan ► Noticeable operation experience, local and technical knowledge, wh
Slide 38: CEE: maximize recovery rates from existing fields
CEE: MAXIMIZE RECOVERY RATES FROM EXISTING FIELDS AND MITIGATE DECLINE RATE Onshore and offshore field development (2012) FIELD DEVELOPMENTS AND EOR/IOR PROJECTS CEE - Development ► ~130 producing fields ► 14 field developments in progress ► 20 new field development projects ► EOR project implementa
Slide 39: MMboe targeted recoverable resource potential
280 MMBOE TARGETED RECOVERABLE RESOURCE POTENTIAL CEE exploration (2012) – outstanding success ratio in the region ► Number of licenses, acreage exposure: 33; 37,400 km2 CEE - Exploration ► 2012: up to 16 conventional and 5 tight gas (3+2 optional) drillings and tests ► 2 3D seismic measurements ► E
Slide 40: Unconventional: test commercial production at Derecske Basin
UNCONVENTIONAL: TEST COMMERCIAL PRODUCTION AT DERECSKE BASIN Drilling an other exploration well to increase proven hydrocarbon volume TIGHT GAS PROJECT WAS INTENSIFIED IN 2010 CEE - Unconventional Derecske Basin ► Drilling of two wells (Beru-4, Beru-3). ► MOL found (Beru-4) the expected formation in
Slide 41: Syria – in line with sanctions maintaining economic interest
SYRIA – IN LINE WITH SANCTIONS MAINTAINING ECONOMIC INTEREST Force majeure announced TIGHTENING SITUATION OVER THE LAST MONTHS ► EU and US embargo on Syrian oil export ► Two production cuts in September and December 2011 in a sum of 2.8 mboepd due to the local requirements Syria ► Encountering signi
Slide 42: Downstream
DOWNSTREAM Reinforce Regional Stronghold Position Downstream 42
Slide 43: Two largest assets with high complexity
TWO LARGEST ASSETS WITH HIGH COMPLEXITY Integrated operation in adjacent markets KEY STRENGTH ► Strong land-locked market presence – 21% motor fuel market share in the CEE ► Region-wide Logistics, Wholesale and Retail network serve the market - above 55% end-user share Bratislava 4%4% 3% 9% Refinery
Slide 44: Challenging refinery environment
CHALLENGING REFINERY ENVIRONMENT …only gradual improvement expected CHALLENGES EXPECTED DEVELOPMENTS USD/bbl Crude oil price 150 ► We expect oil to stay on similar ► Surging crude oil price increased 100 costs on own consumption & loss levels also in mid term 50 dramatically 0 2005 2012 Brent DTD cr
Slide 45: Demand suffers from economic crisis, but...
DEMAND SUFFERS FROM ECONOMIC CRISIS, BUT… …long term growth potential remains in the region SHORT TERM CRISIS EFFECT LONG TERM POTENTIAL REMAINS in % Gasoline demand change Car penetration curve Cars per 1,000 inhabitant 800 15 700 Italy ► Regional car France 10 600 Germany penetration is still 500
Slide 46: Long-term tendencies justify complexity and diesel focus
LONG-TERM TENDENCIES JUSTIFY COMPLEXITY AND DIESEL FOCUS Favourable balance of landlocked CEE market Supply-Demand Balance - 2012 / 2016 / 2020 Supply-Demand Balance of the CEE region (including refinery and bio supply in Mt) 5 Gasoline 22 28 31 Diesel 0 -16 -29 -26 North-West Europe -5 3 4 4 -7 -8
Slide 47: Increase efficiency and improve profitability
INCREASE EFFICIENCY AND IMPROVE PROFITABILITY …by optimization of assets and processes on Group level I.) Value Chain Optimization Reinforce Regional ► Improved crude selection Downstream by utilising all ► On demand production in refineries synergies of integrated ► Maintain petrochemical integrati
Slide 48: Selective investments to maintain leading position
SELECTIVE INVESTMENTS TO MAINTAIN LEADING POSITION …and improve profitability LOGISTICS AND RETAIL Growth in high margin captive market INVESTMENTS ► New logistics, depots ensure better market reach Largest contributors ► Retail investments focuses on growth markets and sites with favourable positio
Slide 49: Focusing on most profitable sales in key landlocked countries
FOCUSING ON MOST PROFITABLE SALES IN KEY LANDLOCKED COUNTRIES Capturing regional growth opportunities by differentiated geographic focus FOCUS ON PRINCIPAL EXTENSIVE GROWTH AREAS ► ‘Hold fast’: maintain market share in HUN, ITA, while increase in SK, regain in CRO and BIH ► ‘Go for it’: further grow
Slide 50: Financials
Financials Financials 50
Slide 51: All time high EBITDA in 2011
ALL TIME HIGH EBITDA IN 2011 International Upstream contribution delivered the growth Q3 2011 restated Q4 2011 Q4 2010 restated % (IFRS), in HUF billion FY 2010 restated FY 2011 % 129.5 132.6 140.0 (5) EBITDA 526.0 601.8 14 140.9 150.8 150.2 - EBITDA excl. special items(1) 606.1 643.8 6 121.2 131.4
Slide 52: Further strengthened financial position
FURTHER STRENGTHENED FINANCIAL POSITION Fitch reinforced the investment grade credit rating Covenants Gearing (%) USD bn 3 3,5 40 3 2,5 35 2,5 2 2 30 1,5 1 1,5 25 0,5 1 0 20 2 008 2 009 2 010 2 011 2008 2009 2010 2011 EBITDA Net debt to EBITDA Gearing Keep covenants and gearing in the safety zone Fi
Slide 53: 2012 capex: strong focus on upstream
2012 CAPEX: STRONG FOCUS ON UPSTREAM Up to USD 2 bn CAPEX spending MOL GROUP* (2012) UPSTREAM* (2012) DOWNSTREAM (2012) 13% 12% 21% 3% 4% 25% 47% 5% 16% 60% 21% 19% 37% 17% Upstream Downstream Hungary Croatia Refining and Marketing Kurdistan, Iraq Russia Retail Gas Midstream C&O Syria Pakistan Petro
Slide 54: 2012-2014 capex fully financed from operating CF
2012-2014 CAPEX SHOULD BE FULLY FINANCED FROM OPERATING CF Up to annual USD 2 bn CAPEX spending GROUP* 2012-2014 ► Kurdistan, Iraq: Akri-Bijeel and Shaikan blocks ► Russia: Baitex and Matjushkinsky blocks Upstream 21% ► Kazakhstan: Fedorovsky block Key organic growth projects 4% 50% ► Hungarian conv
Slide 55: No pressure for further financing in 2012
NO PRESSURE FOR FURTHER FINANCING IN 2012 Stable maturity profile, more than EUR 2 bn available liquidity 3000 2500 2013 2000 2014 1500 mn EUR 2016 1000 500 0 Deposits Undrawn facilities Available liquidity 2012 2013 2014 Financials -500 -1000 55
Slide 56: Natural hedge position in FX
NATURAL HEDGE POSITION IN FX USD and EUR denominated business mix Total debt – YE 2011 ► Both in Upstream and Downstream operating cash flow is mainly driven by USD and EUR 3% ► CAPEX is also linked mainly to USD, EUR 27% ► Weaker local currencies is slightly beneficial 70% ► FX structure of indebte
Slide 57: Appendix
APPENDIX Appendix 57
Slide 58: All time high EBITDA in 2011
ALL TIME HIGH EBITDA IN 2011 International Upstream contribution delivered the growth Q3 2011 restated Q4 2011 Q4 2010 restated % (IFRS), in HUF billion FY 2010 restated FY 2011 % 129.5 132.6 140.0 (5) EBITDA 526.0 601.8 14 140.9 150.8 150.2 - EBITDA excl. special items(1) 606.1 643.8 6 121.2 131.4
Slide 59: Upstream – stable production
UPSTREAM - STABLE PRODUCTION High crude price, stronger USD Total realized hydrocarbon Brent (USD/bbl) Daily hydrocarbon production (m boepd) 120 80 price (USD/boe) 160 -4% 0% Other international cond. 144.8 145.8 143.4 0,6 0,7 0,7 100 6,9 5,5 4,5 Croatian condensate 140 4,2 0,7 4,2 5,7 4,7 4,7 113,
Slide 60: Upstream result was record high in Q4
UPSTREAM RESULT WAS RECORD HIGH IN Q4… EBITDA* (HUF bn) 140 130 8% Positive effects of 120 + ► Restart of Croatian oil and condensate sales to 131,4 Sisak (back to operation in November) 110 121,2 108,1 ► Strengthening USD against HUF 100 Q4 2010 Q3 2011 Q4 2011 were moderated by negative effects of
Slide 61: ... and all time high in 2011
… AND ALL TIME HIGH IN 2011 Operating profit* (HUF bn) EBITDA* (HUF bn) 500 350 21% 300 16% Results were boosted by positive effects of 400 250 300 484,5 200 330,2 ► higher average hydrocarbon 200 400,8 284,2 150 production driven by increased 100 119,3 162,6 212,3 100 125,8 144,7 + volumes from Syr
Slide 62: Downstream: still depressed macro environment
DOWNSTREAM: STILL DEPRESSED MACRO ENVIRONMENT High oil price and falling Brent-Ural spread ruled the conditions Brent-Ural differential (USD/bbl) 170 1,5 premium unleaded (USD/t) /FOB ROTT/ 120 1 gas oil (USD/t) /FOB ROTT/ 70 1,45 -67% Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 -100 0,5 -150 fuel oil 3
Slide 63: MOL sales outperformed the core market
MOL SALES OUTPERFORMED THE CORE MARKET Consumption of motor fuels in the CEE region decreased Q4 - Demand change of Motor Fuels * Q4 Market Q4 MOL Group y-o-y change % Gasoline Diesel Motor Fuel Gasoline Diesel Motor Fuel Hungary (2.7) (6.6) (5.4) 0.1 (2.6) 1.9 Slovakia (10.2) (3.8) (5.6) (2.6) (0.0
Slide 64: Downstream in Q4 2011 – suffered from external environment
DOWNSTREAM in Q4 2011 – SUFFERED FROM EXTERNAL ENVIRONMENT Clean CCS R&M profit** excluding INA is still positive Downstream External refined product and EBITDA* (HUF bn) petrochemical sales (Mt) 30 6 -3% 20 30,1 EBITDA* turned to negative 10 4 5,3 5,4 5,2 11,6 ► challenging Downstream environment 0
Slide 65: Downstream in 2011 – depressed external conditions
DOWNSTREAM IN 2011 – DEPRESSED EXTERNAL CONDITIONS Relatively healthy profit contribution of clean R&M excluding INA EBITDA* (HUF bn) External refined product and petrochemical sales (Mt) 25 170 -34% 140 0% The refining business was challenged by: 178 20 110 ► higher cost of own consumption and 117,
Slide 66: Gas Midstream – higher results due to lower Croatian loss
GAS MIDSTREAM – HIGHER RESULTS DUE TO LOWER CROATIAN LOSS Better transmission result after end of tariff freezing in July Gas Midstream Operating profit* (HUF bn) FGSZ Zrt. – HUF 46.6 operating profit in 2011 70 ► negative effect of frozen gas tariffs ended in July 24% 60 ► 10% decline in transmissi
Slide 67: Strong financial position
STRONG FINANCIAL POSITION 2011 CAPEX is below target due to conservative approach Operating cash flow before Gearing position changes in working capital (HUF bn) Robust operating cash fully covered 150 35% CAPEX payments ► Net debt (HUF 900 bn) and gearing 30% increased slightly vs Q3 2011 100 25% 1