Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Non-Deal Roadshow (November 2017)
29 slides from Omv's roadshow presentation, Nov 17, 2017
Slide 1: OMV Roadshow
OMV Roadshow Rainer Seele Chairman of the Executive Board and CEO London, November 16-17, 2017 Value creation through performance OMV Aktiengesellschaft
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements. Forward looking statements 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 context. T
Slide 3: OMV – an international, integrated oil and gas company
OMV – an international, integrated oil and gas company Upstream ► Four core regions: CEE, Norway, Middle East and Africa, Russia ► Production 2016: 311 kboe/d (~50% oil, ~50% gas) ► 1P reserves at year-end: 1.03 bn boe (reserves life of ~9 years) ► ~90% of production in EU and OECD countries Downstr
Slide 4: OMV delivers on strategy
OMV delivers on strategy € € PORTFOLIO COST DISCIPLINE STRONG DIVIDEND RESHAPING CASH FLOW Yuzhno Russkoye deal in progress Upstream production cost Free cash flow break-even Dividend Per as planned below USD 9/boe 1 decreased to 35 USD/bbl in Share of 2016 EUR 1.20 for Signed asset swap with Gazpro
Slide 5: Strategic steps towards building sustainable Upstream portfolio
Strategic steps towards building sustainable Upstream portfolio Divestments Acquisitions Scaled down exposure in Signed acquisition of 24.99% in high-cost regions (e.g. UK Yuzhno Russkoye gas field Upstream) Signed binding asset swap Reduced exploration agreement with Gazprom activities in n
Slide 6: Russia becomes one of OMV’s core Upstream regions
Russia becomes one of OMV’s core Upstream regions OMV production contribution from Russian fields 1 in kboe/d 200 150 100 50 0 2017 2 2018 2019 2020 2021 2022 2023 2024 2025 2026 Urengoy, Russia. Source: Gazprom Achimov IV/V Yuzhno Russkoye Stable production flow for a very long period of time P
Slide 7: OMV keeps a risk balanced portfolio
OMV keeps a risk balanced portfolio Size of Russian assets in OMV Group’s average Gazprom – reliable local partner capital employed 1 2016 basis, in EUR bn Business experience of OMV‘s CEO with Gazprom extends over a decade 20 ~15% Yuzhno Russkoye field has consistently produced above plan 15
Slide 8: Optimized Downstream portfolio
Optimized Downstream portfolio Gas sales business Gas transportation business Acquired, restructured and Signed financing agreements integrated gas sales and trading for Nord Stream 2 businesses (renamed OMV Gas Reduced exposure in regulated Marketing & Trading) Gas business by selling 49% S
Slide 9: Nord Stream 2: Improvement of energy security in Europe
Nord Stream 2: Improvement of energy security in Europe Nord Stream 2 pipeline ► 1.220 km long sub-sea gas pipeline from Russia to Germany Nord Stream 2 ► Total project costs of EUR 9.5 bn ► Development starts in 2018 and is planned to finish by 2019 ► Gazprom 100% owner of Nord Stream 2 AG Baumgart
Slide 10: Balanced portfolio results in strong and resilient cash generation
Balanced portfolio results in strong and resilient cash generation Cash generation Sources of funds in EUR bn 3.6 3.5 >3bn 3.3 3.2 3.0 EUR Downstream Upstream Other (0.3) 0.0 (0.1) (0.2) (0.3) 2012 2013 2014 2015 2016 Brent 112 109 99 52 44 in USD/bbl 10 | OMV Group, Roadshow, London, November 16-17
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: Very strong performance in 2017
Very strong performance in 2017 Clean CCS Operating Result Clean CCS net income attributable Clean CCS earnings per Share in EUR mn to stockholders in EUR in EUR mn 2,270 3.85 1,257 3.52 1,148 3.05 1,737 1,535 880 Upsteam 995 1,414 Downstream 2015 2016 9m/17 2015 2016 9m/17 2015 2016 9m/17 Cash flow
Slide 13: Free cash flow after dividends of EUR 2.5 bn
Free cash flow after dividends of EUR 2.5 bn Organic free cash flow1 of EUR 1 bn Sources and uses 2 of cash in 9m/2017 9m/2017 in EUR bn Strong cash flow form operating activities of EUR 2.7 bn 9m/2017 (Q3/17: EUR 0.8 bn) 4.2 Proceeds from divestments of EUR 1.8 bn (Q3/17: EUR 75 mn) 1.5 Free ca
Slide 14: Strict cost discipline
Strict cost discipline Upstream production cost 1 CAPEX 2 Cost-savings program 3 in USD/boe in EUR bn in EUR mn +50 (33)% -33% ~(39)% -39% +50 13.2 2.8 >250 10.6 200 8.8 1.9 ~1.7 ~0.6 1.1 9m 2015 2016 9m/17 2015 2016 2017 2015 2016 2017 Target 1 Starting with 2016, administrative expenses and sellin
Slide 15: 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 16: Updated Outlook 2017
Updated Outlook 2017 2016 Outlook 2017 Brent oil price (USD/bbl) 44 52 CEGH gas price (EUR/MWh) 15 >15 Total hydrocarbon production (kboe/d) 311 >330 (Previous: 330) 1 OMV indicator refining margin (USD/bbl) 4.7 >4.7 Ethylene/propylene net margin (EUR/t) 375 >375 Utilization rate refineries 89% >90%
Slide 17: 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 18: OMV Aktiengesellschaft
OuvV OMV OMV Aktiengesellschaft ouv The energy for a better tite. OMV
Slide 19: BACK-UP
BACK-UP OMV Aktiengesellschaft
Slide 20: More favorable macro environment - significant uplift of refining margins
More favorable macro environment - in particular a significant uplift of refining margins Oil price Brent OMV indicator refining margin in USD/bbl in USD/bbl 60 52 8 7.0 50 54 49 50 6 40 46 6.0 5.6 5.4 30 4 20 3.7 2 10 0 0 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Gas prices Ethyle
Slide 21: Strong Group Clean CCS Operating Result in Q3 2017
Strong Group Clean CCS Operating Result in Q3 2017 driven by Upstream and higher refining margins Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share in EUR mn to stockholders in EUR Downstream Upstream in EUR mn Corporate & Others 804 1.45 662 1.37 300 529 259
Slide 22: Major achievements in reshaping OMV’s portfolio
Major achievements in reshaping OMV’s portfolio Sale of 30% in Sale of a 49% Sale of Divestment of Divested OMV Sale of Ashtart Rosebank; stake in Gas Aliaga OMV UK Petrol Ofisi – net field in Tunisia USD 50 mn Connect Austria; terminal in Upstream cash contribution received in Q4/16 EUR 0.6 bn Turk
Slide 23: Asset swap between Gazprom and OMV is progressing well
Asset swap between Gazprom and OMV is progressing well Project status Signing of final transaction expected by mid-2017 Closing expected by end of 2018 Investments 40% of total EUR 900 million CAPEX to be invested for 2017 and 2018 after closing Leverage on already built infrastructure and
Slide 24: Yuzhno Russkoye: among the largest gas fields in Russia
Yuzhno Russkoye: among the largest gas fields in Russia ► OMV acquired 24.99% participation in Yuzhno Russkoye natural gas field from Uniper SE ► The purchase price amounts to USD 1.85 bn (EUR 1.75 bn1) plus cash on the balance sheet as of December 31, 2016 ► The economic effective date is January 1
Slide 25: Yuzhno Russkoye: an attractive acquisition for OMV
Yuzhno Russkoye: an attractive acquisition for OMV Yuzhno Russkoye versus 2P reserve acquisition multiples in recent Russian asset deals 4.0 Acquisition price, USD//boe of 3.5 3.0 2.5 2.0 2P 1.5 1.0 0.5 0.0 BP - 20% of Taas-Yuryakh ONGC - 15% of Vankor Silk Road Fund - 9.9% of Yamal Oil India, India
Slide 26: 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 now holds 10% i
Slide 27: OMV Petrol Ofisi divestment closed
OMV Petrol Ofisi divestment closed ► Closed divestment of OMV Petrol Ofisi to Vitol Group on June 13, 2017 ► Overall transaction value of EUR 1.4 bn ► Important step in the implementation of OMV’s corporate strategy 27 | OMV Group, Roadshow, London, November 16-17, 2017
Slide 28: Impact of OMV Petrol Ofisi sale in OMV Downstream Oil financials
Impact of OMV Petrol Ofisi sale in OMV Downstream Oil financials 2016 2016 Impact of OMV OMV Downstream OMV Downstream Oil Petrol Ofisi sale Oil excl. OMV Petrol Ofisi Total refined product sales (mn tons) 30.7 20.1 (35)% thereof retail sales (mn tons) 10.4 6.0 (42)% Number of filling stations 3,777
Slide 29: Sensitivities of OMV Group in 2017
Sensitivities of OMV Group in 2017 FY 2017 impact Operating Result 1 Operating cash flow in EUR mn Brent oil price +45 +40 (USD +1/bbl) Gas price (EUR +1/MWh)2 +20 +15 OMV indicator refining margin +110 +85 (USD +1/bbl) Petrochemicals margin (EUR +10/t)3 +15 +10 EUR-USD +170 +130 (USD appreciates by
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