Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Investor Day (March 2018)
78 slides from Omv's investor day presentation, Mar 13, 2018
Slide 1: OMV Strategy 2025 Capital Markets Day
2025 OMV STRATEGY CAPITAL MARKETS DAY London Ι March 13, 2018
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements. Forward looking statements usually may be identified by the use of terms such as “outlook”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “target”, “objective”, “estimate”, “goal”, “may”, “will” and similar terms, or by their c
Slide 3: #invest in a growing company
#invest in a growing company OMV Capital Markets Day Rainer Seele Rainer Seele CEO and Chairman of Chief Executive Officer Chairman of the Executive Board the Executive Board London – March 13, 2018 March 13, 2018 OMV Aktiengesellschaft
Slide 4: Created a more focused, higher performing OMV
Created a more focused, higher performing OMV Clean CCS Operating Result Focused on cash and costs – drastically reduced EUR bn free cash flow break-even, outperformed cost reduction target 3.0 Transformed Upstream into a sustainable business with >100% Reserve Replacement Rate 1.7 Restructured Down
Slide 5: Improved profitability
Improved profitability Oil price free cash flow break-even 1 Clean CCS ROACE After dividends excluding acquisitions and disposals, USD/bbl % +75% (64)% 70 14 8 35 7 25 2015 2016 2017 2015 2016 2017 1 Calculation of the oil price free cash flow break-even is based on the free cash flow after dividend
Slide 6: OMV's integrated and balanced portfolio pays off
OMV’s integrated and balanced portfolio pays off – strong cash flow and resilience Cash generation and oil price development 1 EUR bn 3.9 Increased cash generation despite sharp oil price decline from USD 3.3 3.2 3.0 Downstream ~100/bbl in 2014 to USD 54/bbl in 2017 Reshaped and balanced portfol
Slide 7: Global oil and gas demand continues to grow
Global oil and gas demand continues to grow Global primary energy demand Bn toe + 16% 16.0 15.0 1 13.8 2.8 Renewables 2.4 1.9 0.8 0.9 Nuclear Global primary demand expected to 0.7 increase by 16% by 2030 3.8 3.9 Coal 3.8 Oil and gas demand continues to increase and will account for more 4.4 4.6
Slide 8: Global oil demand growth will support new investments
Global oil demand growth will support new investments Global oil demand Bn tons 4.6 4.7 4.3 1 0.5 Others 0.5 0.4 Global oil demand will continue 0.5 0.5 Europe 0.6 to increase 1.2 1.2 Americas Asia Pacific, Middle East, Africa and 1.3 Russia demand to grow and account 0.2 Russia 0.2 0.1 0.6 Midd
Slide 9: Global gas demand will increase by >20% until 2030
Global gas demand will increase by >20% until 2030 Global gas demand Bn toe 3.7 3.4 0.1 Others 3.0 0.1 0.5 Europe Asia Pacific, Middle East and 0.5 0.1 Africa drive the demand growth 0.5 1.1 Americas 1.0 Existing and sanctioned projects 0.9 will not meet demand 0.4 Russia 0.4 Middle East 0.4 0.7
Slide 10: Asia Pacific – main driver for demand growth
Asia Pacific – main driver for demand growth Fuels demand Petrochemical products demand Mn tons Mn tons 1,830 430 1,750 1,510 340 220 710 690 660 480 490 420 90 70 80 15 25 30 Europe Middle East Asia Pacific Europe Middle East Asia Pacific 2016 2025 2030 Global fuels demand to increase by 9% from
Slide 11: Market assumptions
Market assumptions Medium term Long term Brent oil price USD/bbl 70 70 – 80 Central European Gas Hub price EUR/MWh 20 20 – 22 OMV indicator refining margin USD/bbl 5 ≤5 FX EUR/USD rate 1.20 1.15 – 1.20 11 Capital Markets Day, March 13, 2018
Slide 12: OMV 2025 – Higher performance and more value ahead
OMV 2025 – Higher performance and more value ahead ► Leverage on proven concept of integration ► Significantly internationalize Upstream and Downstream ► Build strong gas market presence in Europe ► Extend record of operational excellence Drive operating result and cash generation 12 Capital Markets
Slide 13: Higher-quality Upstream portfolio
Higher-quality Upstream portfolio Focused international player > 100% 4+1 600 Reserve core 500 Replacement regions Rate 1 348 8.8 <8 <8 2017 2020 2025 Production volumes, kboe/d Production cost, USD/boe 1 3 years average 13 Capital Markets Day, March 13, 2018
Slide 14: Downstream Oil – Further strengthen European position and grow internationally
Downstream Oil – Further strengthen European position and grow internationally 1 quartile st 1 ► Shift to higher value products ► Further increase captive sales volumes ► Export successful European business model internationally towards growing markets Fuels Olefins ► Increase petrochemical and Net
Slide 15: Downstream Gas – Build strong market presence in Europe
Downstream Gas – Build strong market presence in Europe ► Leading integrated supplier from North West to South East Europe ► Monetize increasing equity supply > 80% gas to be imported by 2030 ► Double sales revenues and increase overall margins ► Leverage Nord Stream 2 380 bcm imports required 1 1 I
Slide 16: Continue to grow value
Continue to grow value Clean CCS Operating Result EUR bn ≥5 Capex ≥4 Acquisitions 0.75 Downstream ► Positive free cash flow after Capex dividends 3 Acquisitions 0.75 ► Long term gearing ratio target of ≤ 30% ► Progressive dividend policy Upstream 2017 2020 2025 16 Capital Markets Day, March 13, 2018
Slide 17: Focused investments
Focused investments CAPEX Acquisitions EUR bn EUR bn 2.0 - 2.5 10 2.1 Downstream 8 years 1.8 Upstream 3 years 2015-2017 2018-2025 2015-2017 2018-2025 Ø p.a. Ø p.a. Efficient capital allocation Value adding acquisitions Strict cost management Keep optionality and flexibility Invest along th
Slide 18: Capital allocation priorities
Capital allocation priorities 1 CAPEX ROACE TARGET 2 Acquisitions ≥12% 3 Dividends Mid- and long- term 4 Debt reduction 18 Capital Markets Day, March 13, 2018
Slide 19: Growth strategy implemented in a safe, responsible and carbon efficient manner
OMV’s growth strategy will be implemented in a safe, responsible and carbon efficient manner Safety first Carbon efficiency Recognition Carbon intensity Lost Time Process safety GHG emissions per unit Injury Rate events OMV Operations External product sales 1 (23)% (74)% (15)% stable 2017 vs 2014 20
Slide 20: OMV – Higher performance and more value ahead
OMV – Higher performance and more value ahead Well positioned for profitable growth Growth along the entire value chain Drive strong cash flow generation Solid basis for growth and dividends Leverage on integrated portfolio Natural hedge ensuring resilience Deliver attractive shareholder returns Pro
Slide 21: Capital Markets Day – Johann Pleininger, Upstream
Capital Markets Day Johann Pleininger Deputy Chairman Upstream Executive Board Member London, March 13, 2018 OMV Aktiengesellschaft
Slide 22: OMV Upstream in a nutshell
OMV Upstream in a nutshell Focused international player 2017 0.28 1.15 bn boe 348 kboe/d Lost Time Injury Rate 1P reserves Production 82% 52:48 USD 8.8 per boe EUR 1.2 bn Production from Oil:Gas Production EU/OECD countries Production split cost Clean Operating Result Drilling rig, Austria 22 Capita
Slide 23: We delivered on our promises: Lower cost, increased earnings
We delivered on our promises: Lower cost, increased earnings Cost development 1 Production Clean Operating Result EUR bn Kboe/d EUR mn 10x (42) -42%% 3.8 1,225 +15% 348 2.6 303 311 2.2 CAPEX E&A expenditure Production 117 cost 40 2015 2016 2017 2015 2016 3 2017 3 2015 2016 3 2017 3 13.2 10.6 2 8.8 2
Slide 24: We delivered on our promises: Strengthened reserve base
We delivered on our promises: Strengthened reserve base 1P Reserves Reserve Replacement Rate 1P Reserve Replacement Cost Mn boe 3 years Ø RRR, % 1 year Ø, USD/boe 1,146 1,028 1,030 116 58 73 70 77 31 17 10 2015 2016 2017 2015 2016 2017 2015 2016 2017 3 years peers‘ median 2016 1 1 Source: IHS Markit
Slide 25: Portfolio upgraded, new core region Russia established
We delivered on our promises: Portfolio upgraded, new core region Russia established UK Russia Country exit Acquisition of 24.99% in Yuzhno Russkoye Romania Pakistan Sale of marginal fields Upstream exit 1 Tunisia Libya Divestment of Expansion of offshore asset Sirte position Gabon Australia Country
Slide 26: Upstream strategy 2025
Upstream strategy 2025 Renew and improve the quality of our asset base Double reserves Extend track record of operational excellence Increase cash generation Higher-quality portfolio generating more cash 26 Capital Markets Day, March 13, 2018
Slide 27: Drive production organically and via acquisitions
Drive production organically and via acquisitions Production growth Kboe/d 600 500 Acquisitions 420 Production cost 348 Organic growth both in 2020 and 2025 e.g. Neptun, Nawara, USD/boe Aasta Hansteen <8 Asset base 2017 2018 1 2020 2025 1 Excluding acquisitions and divestments 27 Capital Markets Day
Slide 28: Ensure sustainable reserve replenishment
Ensure sustainable reserve replenishment 1P Reserve development Bn boe > 2.0 1P Reserves Reserve life years 2x 8-10 1.1 Reserve Replacement Rate Gas share 3 years Ø, % % >100 >50 2017 2025 28 Capital Markets Day, March 13, 2018
Slide 29: Increase international footprint: 4 + 1
Increase international footprint: 4 + 1 North Sea Russia CEE Australasia MEA 1 Australia New Zealand OMV Upstream regions Core region – CEE Core region – North Sea Core region – MEA Core region – Russia Development region – Australasia Growth Note: Madagascar not depicted in map 1 Sale agreement for
Slide 30: Exploration: Faster and more disciplined approach
Exploration: Faster and more disciplined approach Excellent Barents Sea track record Increase size and quality of E&A portfolio Grow in OMV core and development regions Achieve faster monetization of discoveries Apply proven excellence in exploration Play opening successes in Wisting, Nept
Slide 31: Technology drives recovery and reduces downtime
Technology drives recovery and reduces downtime Highlights Mean-time-between-failure of producing wells of over 1,900 days (Austria) Reduced number of well interventions per year from over 150,000 to below 6,000 (Romania 1) Low cost drilling 2 and drilling world records Over 80% automated
Slide 32: Transform OMV Upstream into a top digital player
Transform OMV Upstream into a top digital player Project examples Drilling cockpit for real-time collaboration Latest 3D visualization technology for geological interpretation Machine learning and cloud solutions for seismic data processing Future objectives Faster project evaluation for
Slide 33: CEE: Sustain value generation in Romania and Austria
CEE: Sustain value generation in Romania and Austria, realize Black Sea potential Maximize profitable recovery 196 kboe/d 55% 100% Infill drillings, workovers, selected field re-developments mostly onshore gas operated 1 production Strict cost management (CAPEX, production cost) Explore in R
Slide 34: Secure long-term sustainable contribution in North Sea
Secure long-term sustainable contribution in North Sea 79 kboe/d Snefrid Nord Bring Aasta Hansteen on stream offshore production development approval First gas in Q4 2018 Cumulative gas production of up to 43 mn boe 65% Peak production of 18 kboe/d oil Snefrid Nord to be developed as a tie
Slide 35: Build upon huge potential of Russia
Build upon huge potential of Russia Realize organic growth potential 106 kboe/d 1 100% 100 kboe/d from Yuzhno Russkoye over next years onshore production gas Upside from Turonian reservoir layer Production cost Continue growth path with Achimov IV/V <2 USD per boe Conclude asset swap with
Slide 36: Grow and access potential in Middle East & Africa
Grow and access potential in Middle East & Africa Secure stable contribution from Libya 47 kboe/d 71% 20% Maintain and grow production level onshore production oil operated 1 Assess Nafoora field expansion Evaluate exploration potential Deliver Nawara gas project in Tunisia First gas in
Slide 37: Expand footprint in Australasia
Expand footprint in Australasia 17 kboe/d 53% 35% offshore production gas operated 1 Realize upside of current position in New Zealand Strong and stable cash generator Highly profitable production Exploit promising exploration potential Develop Australasia into a core region Evaluate fur
Slide 38: Upstream strategy 2025 – Key takeaways
Upstream strategy 2025 – Key takeaways Renew and improve the quality of our asset base Double reserves Extend track record of operational excellence Increase cash generation 38 Capital Markets Day, March 13, 2018
Slide 39: Capital Markets Day – Manfred Leitner, Downstream
Capital Markets Day Manfred Leitner Downstream Executive Board Member London, March 13, 2018 OMV Aktiengesellschaft
Slide 40: OMV Downstream in a nutshell
OMV Downstream in a nutshell – 2017 Focus on Europe ~15% 0.4 17.8 mn t 2.5 mn t Gas Lost Time Injury Rate Refining capacity Petrochemical capacity EUR 1.8 bn ~50% 2,039 36% 11 bcm Clean CCS Fuels Retail sites Share in Borealis Gas sales Operating Result ~35% Downstream Company Petrochemicals of the
Slide 41: We delivered on our promises
We delivered on our promises 2016 commitments DOWNSTREAM OIL DOWNSTREAM GAS CASH GENERATION Improved operational Created lean basis for IN DOWNSTREAM OIL excellence European gas sales business Maintained strict capital and cost discipline Divested wind power business in Romania Divested Turkish oil
Slide 42: Strong contributor to OMV Group financials
Strong contributor to OMV Group financials Improvement in operations Strong cash flow generator Attractive returns Clean CCS Operating Result, EUR bn Free cash flow, EUR bn 2 RONA in % 18 1.8 1.7 Downstream 1.5 1.5 0.2 Gas 14 14 0.2 1.3 0.2 0.9 Divestments Downstream 1.6 1.6 Oil 0.8 1.3 0.1 9.2 8.8
Slide 43: Key success factors for OMV Downstream
Key success factors for OMV Downstream DOWNSTREAM OIL DOWNSTREAM GAS #1st quartile European refiner 1 Integrated gas value chain from and olefin producer 2 well to customer High share of secure product outlets Long-term reliable partnerships with Europe’s major gas suppliers Strong retail
Slide 44: Downstream strategy 2025
Downstream strategy 2025 Europe Downstream Oil: Further strengthen competitive position Downstream Gas: Become the leading integrated supplier with a strong market presence from North West to South East Europe International Export successful European refining and petrochemical business model t
Slide 45: Europe – further grow competitive position
Europe – further grow competitive position Cash generator Operational excellence Shift to higher value products Further increase captive sales channels Double gas sales volumes Stringent cost management 45 Capital Markets Day, March 13, 2018
Slide 46: OMV will upgrade its European refining assets
OMV will upgrade its European refining assets to market changes European market OMV European production 2016 - 2025 volume 2025 Change 2025 volumes Up to EUR ~ 1 bn planned investments +12% 2.8 mn t for upgrades in 2018 - 2025 Petrochemicals Increase production of petrochemicals Maximize jet f
Slide 47: 3 refining sites = 1 integrated refinery concept
Continuous efforts on operational excellence SCHWECHAT 3 refining sites = 1 integrated refinery concept Optimize asset utilization through intermediate product exchanges Increase the share of higher value products with minimum investments Identify and maximize high margin feedstock EUR ~ 50
Slide 48: OMV Retail – strong brands driving value growth
OMV Retail – strong brands driving value growth OMV Petrom Avanti and Diskont 65% of network 25% of network 10% of network Premium fuels; share in sales doubled since 2012 Most trusted retail brand in Perceived as most Leading shop and gastronomy concept in CEE Romania competitive in p
Slide 49: Retail ambitions for the future
Retail ambitions for the future Profitability turnaround in last 6 years Highly efficient retail stations AT average DE average Operating Result per filling station, EUR 1,000 1 Average throughput per station, mn liters 1 2 RO average OMV Group 3.7 3.8 ~3.8 ~160 3.6 160 ~25% 10 2012 2013 2014 2015 2
Slide 50: Strong petrochemicals position in Europe and potential for growth
Strong petrochemicals position in Europe and potential for future growth Production capacity Clean CCS Operating Result petrochemicals Mn t p.a. EUR mn 2.8 ~300 +12% 2.5 Butadiene and 2.3 aromatics 245 1.8 Propylene 109 104 Ethylene 1 2005 2010 2017 2025 2005 2010 2017 2025 Strong partnerships wit
Slide 51: The share in Borealis is a core asset in OMV Downstream
The share in Borealis is a core asset in OMV Downstream and a basis for further growth Polyolefin production capacity Mn t p.a. Borealis Borealis contribution to #6 in polyolefins globally (incl. 100% of Borouge) OMV’s Clean CCS Operating Result in EUR mn #2 in polyolefins in Europe Borouge III
Slide 52: OMV will further improve its best in class captive sales volume
OMV will further improve its best in class captive sales volume Refineries Sales Retail sales volume % of refining capacity Equity crude oil processed 24% Captive sales outlets % of refining capacity % 35% 9% 40% 31% 25% 47% 21% Petrochemical sales volume 55% % of refining capacity 7% OMV – top refi
Slide 53: Europe needs more natural gas
Europe needs more natural gas EU-28 gas supply and demand Bcm 500 +40 460 ~40 Increasing European gas demand supported by the Imports ~ 330 switch from coal to gas ~375 Declining European indigenous production requires further gas import volumes EU-28 production ~130 ~85 Demand Demand 2016 2030
Slide 54: OMV aims to double natural gas sales in Europe
OMV aims to double the natural gas sales and build a strong market presence in Europe Nord Stream 1 Yamal-Europe Increase equity gas volumes in Norway, Romania and Russia Nord Stream 2 Urengoy-Uzhgorod Leverage Nord Stream 2 to support TransBalkan Baumgarten hub OPAL Secure utilization of LNG
Slide 55: Develop international Downstream Oil position
Develop international Downstream Oil position Export successful European model to growing markets Establish 1-2 core regions outside Europe; MoU with ADNOC Long term Expand petrochemical position Nearly double refining capacity Acquisition budget Grow refining capacity until 2025, EUR bn ~5 55
Slide 56: The majority of demand growth driven by Asia
The majority of demand growth driven by Asia Development of fuels and petrochemicals demand 2016 to 2030 Mn t +20 +7 +18 1 Europe Russia (60) +320 +32 +70 +12 +15 Americas +210 Middle East +50 Fuel products +18 Petrochemicals Africa Asia ► Growth in global oil demand >90% from Asia 1 CIS & EE ► Grow
Slide 57: Increase in demand triggers substantial capacity additions
Increase in demand triggers substantial capacity additions Global refinery capacity vs. demand 1 Petrochemicals capacity vs. demand Mn t p.a. Mn t p.a. 155 250 145 200 = = 5,400 880 4,950 Borouge ~35 580 x polymer ~25 Schwechat x refinery capacity 2016 Announced Gap 2030 2016 Announced Gap 2030 4,80
Slide 58: Strong oil demand required utilization rates above 80%
Strong oil demand required utilization rates above 80% in Asia, Middle East and Russia Europe Russia Middle East Asia Africa 84% 88% 85% 85% 82% 82% 73% 73% Refinery utilization rate 1 65% 61% 2017 - 2030 2017 2030 2017 2030 2017 2030 2017 2030 2017 2030 Standard refining margin 4.9 >5.3 2 6.6 n.a.
Slide 59: Downstream strategy 2025 – Key takeaways
Downstream strategy 2025 – Key takeaways EUROPE Stay Downstream Oil champion Become the leading integrated supplier of natural gas INTERNATIONAL Export our know-how to international growth markets 59 Capital Markets Day, March 13, 2018
Slide 60: Capital Markets Day – Reinhard Florey, CFO
Capital Markets Day Reinhard Florey Chief Financial Officer London, March 13, 2018 OMV Aktiengesellschaft
Slide 61: We deliver on our financial targets …
We deliver on our financial targets … 2016 commitments Reduced annual Generated free cash CASH CAPEX 1 by 40% to flow after dividends 4 EUR 1.7 bn since 2015 of EUR 1 bn in 2017 Saved EUR 330 mn 2 Deleveraged OMV and substantially to net debt of exceeded cost EUR 2 bn 5 and built reduction targets u
Slide 62: … and create shareholder value
… and create shareholder value Annualized Total shareholder return Last five 2017 Last three years years OMV 61% 39% 18% Peers 1 20% 27% 13% ATX 2 34% 19% 10% FTSEUR1ST 300 OIL & GAS 2 6% 10% 6% FTSE EUROTOP 100 2 9% 6% 9% 1 BP, ENI, Galp, Lundin Petroleum, MOL, Neste Oil, PKN Orlen, Repsol, Shell,
Slide 63: Active portfolio management
Active portfolio management We successfully transformed our portfolio … at the same time we built the foundation for and disposed non-core assets … profitable growth OMV UK Libya Smaller non-core assets Yuzhno Russkoye … Minority in Gas Connect Austria 1 Unmanned filling stations Petrol Ofisi Smatri
Slide 64: Stringent cost discipline
Stringent cost discipline Cost savings program 1 CAPEX 3 2015 normalized baseline, EUR mn EUR bn (40)% 330 2.8 250 1.9 200 1.7 Delivered Target 2 Target 2 Delivered 100 Target 2016 2017 2015 2016 2017 1 Based on Operating Cost versus 2015 baseline according to OMV definition on a comparable basis 2
Slide 65: Substantially improved financial performance
Substantially improved financial performance Clean CCS net income attributable to stockholders EUR bn Clean CCS EPS 1.6 2017, EUR 2015 EUR 1.1 4.97 3.52 1.0 54 Oil price 52 USD/bbl Clean CCS Economic Value 44 Added 2017, EUR bn 2015 EUR bn 1.1 0.1 2015 2016 2017 7.2 4.7 6.0 OMV Indicator refining ma
Slide 66: Strong organic cash generation provides optionality
Strong organic cash generation provides optionality Organic free cash flow after dividends Excluding acquisitions and disposals, EUR bn Organic free 1.2 cash flow after dividends 3.5 3.4 0.4 2.9 2.8 2.5 2.3 (0.7) 2015 2016 2017 Operating cash flow Dividends Cash flow for investing activities excludi
Slide 67: Strengthened balance sheet
Strengthened balance sheet Net debt and gearing ratio EUR bn 4.0 Cash position Target long-term 3.0 EUR bn 1 gearing ratio 28% 21% 2.0 4.0 ≤30% 14% Undrawn revolving Gearing ratio credit facilities Net debt EUR bn 1 3.5 1 As of end 2017 2015 2016 2017 67 Capital Markets Day, March 13, 2018
Slide 68: Balanced maturity profile
Balanced maturity profile Maturity profile Strong investment grade rating EUR bn 1.5 Baa1 A- Outlook stable Outlook stable 1.0 June 12, 2017 Feb 12, 2018 Financing costs 1 0.5 2015 2017 0.0 2.45% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027ff 2.76% 1 Weighted average interest rate of OMV Group’
Slide 69: Financial steering framework
Financial steering framework Shareholder return and strong rating Value + Cash Focus Strength of balance sheet and Growth in profitability and steady value enhancement adequate liquidity KPIs ROACE/EVA Free cash flow after dividends Gearing Clean CCS net income/NOPAT Principles Operational efficie
Slide 70: Cost discipline remains an imperative
Cost discipline remains an imperative OMV’s cost discipline culture New efficiency target 1 Operational efficiency in both Upstream and Downstream 2018 - 2020 Capture economies of scale and strict management of overhead costs Process optimization and harmonization Procurement savings and contractor
Slide 71: CAPEX – disciplined investing while growing
CAPEX – disciplined investing while growing CAPEX 1 2018 - 2025 CAPEX 1 2018 - 2025 EUR bn EUR bn 3/4 1/3 Growth Downstream 2.0 - 2.5 2.0 - 2.5 on average p.a. on average p.a. ~25% 1/4 2/3 Maintenance Upstream & mandatory 1 CAPEX excluding purchase price acquisition CAPEX and contingent consideratio
Slide 72: M&A criteria – focus on cash and value
M&A criteria – focus on cash and value Strategic VALUEcriteria Financial criteria ROACE ≥12% Strategic fit Cash profile Return profile Balanced Upstream and Free cash flow positive mid-term Defined investment hurdles Downstream portfolio considering Timely cash generation with a Focus on l
Slide 73: Funding the growth – mid term perspective
Funding the growth – mid term perspective Sources of cash Uses of cash 3 years cumulative, indicative based on 2018 - 2020, EUR bn 2017 Operating cash flow, EUR bn Cash contribution Disposals and from M&A Gearing cost optimizations 2018 - 2020 headroom 2 3x 2017 Allocation optionality Operating cash
Slide 74: Maintain resilience
Maintain resilience Oil price free cash flow break-even 1 After dividends excluding acquisitions and disposals, USD/bbl Generating cash, delivering value 70 Capturing value- Efficient CAPEX accretive growth spending opportunities Sustainable Integrated business 35 generation of organic model and bal
Slide 75: Attractive shareholder returns
Attractive shareholder returns Dividend per share EUR 50% ++50% 1.5 Record dividend of EUR 1.50 per share for 2017 proposed 1.2 We are committed to delivering an attractive and 1.0 predictable shareholder return through the business cycle Progressive dividend policy: OMV aims to increase the d
Slide 76: Financial priorities and long-term targets in a nutshell
Financial priorities and long-term targets in a nutshell Positive free cash flow after dividends Competitive shareholder returns Growing Gearing ratio Clean CCS net income attributable to stockholders ≤30% Strong investment grade credit rating ROACE 76 Capital Markets Day, March 13, 2018 ≥12%
Slide 77: Finance strategy 2025 – Key takeaways
Finance strategy 2025 – Key takeaways Enable growth Drive performance Reward shareholders 77 Capital Markets Day, March 13, 2018
Slide 78: OMV 2025 – Higher performance and more value ahead
OMV 2025 – Higher performance and more value ahead Higher-quality Upstream portfolio 600 kboe/d by 2025 4+1 core regions Balanced integrated portfolio International Downstream Oil Nearly double refining capacity Strengthen petrochemical position Positive free cash flow after dividends Strong