Slide 1: OMV Q4 and full-year 2016 conference call
OMV Q4 and full-year 2016 conference call Rainer Seele Chairman of the Executive Board and CEO February 16, 2017 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: 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 forecast 2017 2018 2019 2020 2021 8 Price 55 65 70 75 75 6 60 5.9 5.6 40 4 5.1 4.7 46 46 49 44 3.7 20 34 2 0 0 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Gas pric
Slide 4: OMV delivered on strategy in 2016
OMV delivered on strategy in 2016 € € PORTFOLIO COST SAVINGS STRONG DIVIDEND RESHAPING CASH FLOW Sold Upstream OMV UK Cost savings of Strong operating cash Dividend Per EUR 200 mn flow despite weaker Share of EUR 1.20 Signed asset swap with achieved - ahead of market conditions Gazprom target Achiev
Slide 5: Strategic steps towards building sustainable Upstream portfolio
Strategic steps towards building sustainable Upstream portfolio Divestments Acquisitions Scaled down exposure in Signed Gazprom asset swap high-cost regions binding agreement Reduced exploration Extended operations in Libya activities in non-core region Achieved Reserve Replacement of Sub-
Slide 6: OMV in Libya: Operations restarted
OMV in Libya: Operations restarted OMV operations in Libya OMV restarted production in Murzuq and Sirte basins in 2016 Expansion of capacity OMV increased stake in four Exploration and Production Sharing Agreements in the Sirte Basin (C103, NC29/74, C102 and Nafoora Augila) OMV holds now 10% i
Slide 7: Asset swap between Gazprom and OMV progressing well
Asset swap between Gazprom and OMV progressing well OMV’s share of Achimov’s IV/V production Project status development Signing of final transaction expected by mid-2017 Closing expected by end of 2018 in kboe/d 100 Investments 80 40% of total EUR 900 million CAPEX to be invested for 2017 an
Slide 8: Optimized Downstream portfolio
Optimized Downstream portfolio Gas sales business Gas transportation business Acquired, restructured and Reduced exposure in regulated integrated gas sales and trading Gas business by selling 49% businesses (renamed OMV Gas share in Gas Connect Austria Marketing & Trading) Alternative options
Slide 9: Solid performance in 2016
Solid performance in 2016 Clean CCS EBIT Clean CCS Net Income Clean CCS Earnings Per in EUR mn attributable to stockholders Share in EUR mn in EUR 1,390 1,148 995 3.52 1,110 3.05 2015 2016 2015 2016 2015 2016 Cash flow from operating activities Free cash flow after dividends incl. Dividend Per Share
Slide 10: Strict cost discipline
Strict cost discipline Upstream Capex E&A expenditure Operating cost savings 1 production costs in EUR bn in EUR mn in EUR mn Opex in USD/boe (12)% (32)% (49)% (200) mn Corporate Downstream 13.2 2.8 607 11.6 1.9 307 Upstream 2015 2016 2015 2016 2015 2016 2015 2016 1 Like-to-like comparison 10 | OMV
Slide 11: Financial resilience: oil price free cash flow break-even lowered
Financial resilience: oil price free cash flow break-even lowered Brent oil price free cash flow 1 break-even OMV Group, in USD/bbl Free cash flow break-even decreased to 35 USD/bbl (50)% Significant reductions in CAPEX, cost and stringent focus on cash generation ~70 Free cash flow after divide
Slide 12: OMV Q4 and full-year 2016 conference call
OMV Q4 and full-year 2016 conference call Reinhard Florey Chief Financial Officer February 16, 2017 OMV Aktiengesellschaft
Slide 13: Financial highlights
Financial highlights Financial stability improved 2016 2015 Free cash flow after dividends incl. non-controlling 1,105 (581) interest changes 1 (EUR mn) Net debt (EUR bn) 3.0 4.0 Gearing (%) 21 28 Net special items (EUR bn) (1.4) (3.0) Financial firepower for strategic transactions improved: EUR
Slide 14: Cash flow development
Cash flow development EUR mn Q4/16 Q4/15 2016 2015 Net income (145) (1,308) 3 (1,255) Depreciation, amortization, impairments including write- 1,006 2,162 3,598 5,153 ups Change in net working capital components (266) (221) (148) (400) Other 16 (200) (575) (664) Cash flow from operating activities 6
Slide 15: Solid operational results
Solid operational results Q4/16 vs. Q4/15 EUR mn Q4/16 Q4/15 2016 2015 Clean CCS EBIT: +68% Upstream increased due to lower Clean CCS EBIT 315 187 1,110 1,390 exploration expenses and depreciation Upstream 85 (62) 26 139 Higher contribution from Downstream Gas Downstream 270 247 1,122 1,178 20
Slide 16: Income statement summary
Income statement summary EUR mn Q4/16 Q4/15 2016 2015 Clean CCS EBIT 315 187 1,110 1,390 CCS effect 20 (155) 6 (368) Special items (415) (1,761) (1,388) (3,028) EBIT (81) (1,729) (271) (2,006) Financial result 39 18 227 97 Borealis 86 87 399 356 Taxes (103) 403 47 654 Net income (145) (1,308) 3 (1,2
Slide 17: 2016 special items mainly related to portfolio optimization
2016 special items mainly related to portfolio optimization Net special items in 2016 in EUR mn 1,388 Net special items in Upstream Mainly related to divestments Rosebank field at EUR (553) mn OMV UK Upstream subsidiary at EUR (493) mn Net special items in Downstream Impairment of OMV Petrol
Slide 18: Increased cost savings target for 2017
Increased cost savings target for 2017 Operating cost 1 reduction in EUR mn 300 Delivery of EUR 200 mn New target Procurement savings already in 2016 250 250 +50 Cross-divisional (Upstream – EUR mn Downstream) benchmark on operating 200 costs and best practice sharing (e.g. 200 maintenance) Deli
Slide 19: CAPEX guidance reduced to EUR 2 bn
CAPEX guidance reduced to EUR 2 bn Group CAPEX E&A expenditure íncl. capitalized E&A in EUR bn in EUR mn (28)% (51)% 2.8 607 2.0 1.9 2.1 307 300 1.4 0.6 0.5 2015 2016 2017-2018 1 2015 2016 2017-2018 Upstream Downstream Corporate and Other CAPEX figures are not depicted in the graph 1 Group Capex gui
Slide 20: New dividend policy
New dividend policy Dividend per share in EUR We are committed to delivering an attractive and predictable shareholder return through the 1.25 1.25 business cycle 1.20 1.20 1.10 1.00 1.00 Floor dividend of EUR 1 per share projected, provided that this will not be to the detriment of the Company’
Slide 21: Financial steering framework of OMV
Financial steering framework of OMV Shareholder return and stable rating Value + Cash KPI ROACE Free Cash Flow Focus Strength of balance sheet Growth in profitability Operational efficiency Principles Capital efficiency Financing/Cash efficiency Future oriented portfolio management 21 | OMV Group, Q
Slide 22: Outlook 2017
Outlook 2017 2016 Forecast 2017 Brent oil price (USD/bbl) 44 55 CEGH gas price (EUR/MWh) 15 > 15 Total hydrocarbon production (kboe/d) 311 320 1 OMV indicator refining margin (USD/bbl) 4.7 < 4.7 Utilization rate refineries 89% >90% CAPEX (EUR bn) 2 1.9 2 E&A expenditures (EUR mn) 307 300 Cost saving
Slide 23: We are the energy – for a better life
OMV Vision 2020 We are the energy – for a better life Restructuring Value added growth Streamlined portfolio Upstream Integrated gas sales and Growing in low-cost regions with rich hydrocarbon trading businesses reserves OMV Achieved > EUR 200 mn Optimize operating assets in 2020 cost sa
Slide 24: OMV Aktiengesellschaft
OV OMV OMV Aktiengesellschaft oOuv Moving more. Moving the future. O M Vv
Slide 25: BACK-UP
BACK-UP OMV Aktiengesellschaft
Slide 26: Quarterly development in 2016
Quarterly development in 2016 Production Cash Flow in kboe/d in EUR mn 2,878 312 316 301 315 311 US 46 46 49 1,036 1,105 34 44 652 611 803 579 DS 208 239 Q1/16 Q2/16 Q3/16 Q4/16 2016 (145) Production (kboe/d) Brent price (USD/bbl) Q1/16 Q2/16 Q3/16 Q4/16 2016 Cash flow from operating activities Free
Slide 27: Strict cost management and higher production turn Q4/16 Upstream clean EBIT positive
Strict cost management and higher production turn Q4/16 Upstream clean EBIT positive Clean EBIT in EUR mn Q4/16 vs. Q4/15 Higher realized oil price by 12% to 45 12 (15) 85 USD/bbl and lower realized gas price by 25% to EUR 12/MWh 67 Production rose by 2% to 315 kbbl/d Sales volumes increased b
Slide 28: Downstream's performance remained very strong
Downstream’s performance remained very strong Q4/16 vs. Q4/15 Clean CCS EBIT in EUR mn Oil 247 High utilization rate at 96% 270 Total refined product sales increased to 7.9 mn t 24 Gas Stable petrochemicals business +64 Slightly lower OMV indicator refining margin at USD 5.6/bbl 288 Oil Di
Slide 29: Strong balance sheet
Strong balance sheet Balance Sheet 2016 vs. 2015 Highlights 2016 in EUR bn 32.7 32.3 32.3 32.7 EUR 3.4 bn reduction in tangible and intangible assets mainly due to reclassification as assets held for sale and to impairments Stockholders’ equity 11.1 11.7 booked during the period Tangible & intangi
Slide 30: Managing the maturity of debt
Managing the maturity of debt Debt maturity profile in EUR mn 1.200 1.000 800 600 400 200 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026ff Money market borrowings Eurobonds Bilateral, syndicated, multilateral loans Term Loans Hybrids not depicted in the graph 30 | OMV Group, Q4 and full year 20
Slide 31: Sensitivities on OMV Group in 2017
Sensitivities on OMV Group in 2017 2017 impact EBIT Operating cash flow in EUR mn Brent oil price +35 +30 (USD +1/bbl) Gas price (EUR +1/MWh) +20 +15 OMV indicator refining margin +110 +85 (USD +1/bbl) Petrochemicals margin (EUR +10/to) +15 +10 EUR-USD +160 +125 (USD appreciates by 10 US cents) Note