Slide 1: OMV Strategy and 2015 results presentation
OMV Strategy and 2015 results presentation February 18, 2016 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: Agenda
Agenda Management presentations 10.30am – 11.15am Rainer Seele, Chairman of the Executive Board and CEO 11.15am – 11.45am David C. Davies, Deputy Chairman of the Executive Board and CFO 11.45am – 12.30pm Q&A session 12.30pm – 01.30pm Break 01.30pm – 02.00pm Johann Pleininger, Member of the
Slide 4: Rainer Seele
OMV Aktiengesellschaft Rainer Seele Chairman of the Executive Board and CEO OMV Aktiengesellschaft
Slide 5: Agenda
Agenda ► Financial Performance ► OMV Strategy ► Outlook 5 | OMV Group, Strategy and 2015 results presentation
Slide 6: HSSE: Safety is our top priority
HSSE: Safety is our top priority Strong safety improvement record LTIR 1 OMV Group 0.7 0.5 0.4 0.3 2012 2013 2014 2015 1 Lost-Time Injury Rate 6 | OMV Group, Strategy and 2015 results presentation
Slide 7: Financial performance 2015
Financial performance 2015 Clean CCS EBIT Clean CCS Earnings per share Free cash flow before dividends in EUR bn in EUR in EUR bn 2.2 0.27 3.47 3.52 1.7 1.4 0.1 1.2 0.6 (0.04) 2014 2015 2014 2015 2014 2015 Upstream Downstream Corporate & Other, Dividend proposal: EUR 1.00 per share 1 Consolidation 1
Slide 8: Revised market outlook triggered significant impairments in 2015
Revised market outlook triggered significant impairments in 2015 OMV Brent oil price assumptions Special charges in 2015 in USD/bbl in EUR bn 3 110 105 105 105 100 90 90 85 85 80 Upstream 80 75 75 70 70 70 65 60 55 55 55 50 40 40 Downstream 30 2015 2016 2017 2018 2019 2020ff 2015 Previous planning a
Slide 9: Agenda
Agenda ► Financial Performance ► OMV Strategy ► Outlook 9 | OMV Group, Strategy and 2015 results presentation
Slide 10: Oil and gas market under pressure
Oil and gas market under pressure 140 Outlook 2016 Longer term outlook 120 ► Still significant oversupply ► Potential supply Oil price 100 Brent, 80 ► Iran crude adding to shortage building up by in USD/bbl 60 imbalance investment cuts and 40 deferrals 20 0 30 25 ► Oversupply situation ► Europe to c
Slide 11: OMV operating performance since 2011
OMV operating performance since 2011 Clean CCS EBIT in EUR mn Key drivers of business 2,154 1,669 Upstream ► Significant oil price drop of >50% 139 starting mid-2014 ► EBIT loss from Libya and Yemen Brent oil price 1 111 99 52 240 ► Low utilization of gas-to-power Downstream 101 Gas ► Margin pressur
Slide 12: OMV – a strong, integrated oil and gas company
OMV – a strong, integrated oil and gas company Upstream Downstream Exploration Development Production Downstream Downstream Gas Oil Restructure and Strong cash Value over volume growth grow volume generator 12 | OMV Group, Strategy and 2015 results presentation
Slide 13: Strategic priorities
Strategic priorities Upstream ► Lower cost and increase capital efficiency Value over ► Focus on 3 core and selected development areas volume growth ► Achieve Reserve Replacement Rate of 100% ► Long-term strategic partnerships Downstream Gas ► Create lean North West European gas sales business Restr
Slide 14: Upstream
Upstream ► Lower cost and increase Value over volume growth capital efficiency ► Focus on 3 core and selected development areas ► Achieve Reserve Replacement Rate of 100% ► Long-term strategic partnerships Edvard Grieg (Lundin), Norway 14 | OMV Group, Strategy and 2015 results presentation
Slide 15: Upstream activities will be focused
Upstream activities will be focused Edvard Grieg (Lundin), Norway Urengoy, Russia (source Gazprom) Schönkirchen, Austria Ashtart, Tunisia New Zealand Core regions contribute ≥ 50 kboe/d Core region 1 – CEE Core region 3 – MEA Core region 2 – North Sea Development areas (Russia, UAE, Iran) Note: Some
Slide 16: Middle East and Russia among the lowest cost upstream regions
Middle East and Russia among the lowest cost upstream regions in the world Northern Russia Middle East Europe Reserves 719 410 remaining 1, 2 42 in bn boe Acquisition cost 2P 3 9 11 in USD/boe 2 43 Finding, development 10 11 and production cost 4 in USD/boe 1 Commercial and Technical 2 Wood Mackenzi
Slide 17: Production: Maintain 300 kboe/d, upside from Russia and Libya/Yemen
Production: Maintain 300 kboe/d, upside from Russia and assumed return of Libya/Yemen OMV production in kboe/d 360 Russia (Achimov IV/V) Libya/Yemen 5-10% Upstream 303 Base CAPEX, 300 Production cumulative 2016-2020 90-95% 2015 2020 ► Not reflecting impact of asset swap 17 | OMV Group, Strategy and
Slide 18: Potential Achimov IV/V participation in Russia
Significant opportunity: Potential Achimov IV/V participation in Russia Expected production development Asset swap with Gazprom Indicative production Achimov IV/V, in % of plateau Condensate Gas ► Acquisition of 24.98% stake in areas IV and V of the Achimov formation 100% (Urengoy field) via asset s
Slide 19: Reduction of Exploration and Appraisal spend
Reduction of Exploration and Appraisal spend E&A expenditure in EUR mn (12)% 693 607 (26)% 450 (33)% 300 2014 2015 2016 2017/18 1 ► Change of reserve replenishment strategy ► Review Sub-Saharan Africa positions ► Focus on near-field opportunities ► Acquisitions in low cost areas 1 2017/18 average pe
Slide 20: CAPEX discipline and efficiency
CAPEX discipline and efficiency Group CAPEX reductions incl. capitalized E&A, in EUR bn Peers 3.8 (28)% (37)% (26)% (13)% 2.8 2.4 2014 2015 2016 2017/18 1 ► Sustainable reduction of unit CAPEX cost ► Focus on highly profitable barrels ► Simpler, standardized specifications and processes ► Enhanced c
Slide 21: Sustainable cost reduction and efficiency improvements
Sustainable cost reduction and efficiency improvements Manageable cost reduction 1 and efficiency improvement effects in EUR mn Total sustainable cost reduction target by 2017 ► New function for cost management and efficiency created Overachievement 100 1 year ahead of 200 ► Contractor renegotiation
Slide 22: Downstream Gas
Downstream Gas Restructure ► Create lean North West and grow European gas sales volume business ► Divest up to 49% of Gas Connect Austria and invest in non-regulated Nord Stream 2 project ► Minimize power activities 22 | OMV Group, Strategy and 2015 results presentation
Slide 23: Nord Stream 2: Secure gas flows to Baumgarten
Nord Stream 2: Secure gas flows to Baumgarten Nord Stream 2 ► Twin 1,224-kilometer offshore pipeline system from Russia to Germany ► Capacity of 55 bcm p.a. ► Investment partners: Gazprom 50%; E.ON, Shell, OMV, ENGIE and BASF 10% each Baumgarten ► Total project investments (100%) of around EUR 10 bn
Slide 24: Nord Stream 2: Strategic rationale
Nord Stream 2: Strategic rationale ► Economically attractive investment ► Non-regulated, fixed return based on 100% ship or pay ► Increases security of supply of Austrian gas imports ► Baumgarten as destination for major volumes which secures value of Gas Connect Austria 24 | OMV Group, Strategy and
Slide 25: Downstream Oil
Downstream Oil Strong cash ► Maintain strict capital and generator cost discipline ► Strengthen integrated margin ► Divest OMV Petrol Ofisi 25 | OMV Group, Strategy and 2015 results presentation
Slide 26: Additional cash flow from divestments
Additional cash flow from divestments Gas Connect Austria : OMV Petrol Ofisi: Minority divestment opportune No strategic fit ► Very stable return asset… ► Market leading position in the largest European growth market… …yet highly regulated business with …yet limited integration within OMV limited en
Slide 27: Agenda
Agenda ► Financial Performance ► OMV Strategy ► Outlook 27 | OMV Group, Strategy and 2015 results presentation
Slide 28: Outlook 2016
Outlook 2016 ► Oil price: Annual average of USD 40/bbl expected ► Refining margins: Expected to decline from 2015 level ► Retail volumes: Lower product prices expected to support demand ► Gas markets: Remain challenging ► Production: ~300 1 kboe/d ► CAPEX: EUR ~2.4 bn (~70% Upstream) ► E&A expenditu
Slide 29: OMV strategy in a nutshell
OMV strategy in a nutshell Focus on cash and costs Achieve sustainable position in Upstream Restructure Downstream Gas Continue to strengthen competitiveness of Downstream Oil 29 | OMV Group, Strategy and 2015 results presentation
Slide 30: OMV Aktiengesellschaft
OMV Aktiengesellschaft OMV Aktiengesellschaft
Slide 31: David C. Davies
David C. Davies Deputy Chairman of the Executive Board and CFO OMV Aktiengesellschaft
Slide 32: Agenda
Agenda ► Results Q4/15 ► Financial priorities and guidance 32 | OMV Group, Strategy and 2015 results presentation
Slide 33: Q4/15 Highlights
Q4/15 Highlights Clean CCS EBIT Q4/15 vs. Q4/14 in EUR mn 545 Average Brent price down by 43% to USD 44/bbl Production at 309 kboe/d, down by 3% (324) Lower oil sales volumes, mainly in Yemen and Libya 20 (53) 187 Strong refining performance, partially offset by Downstream Gas Gearing rati
Slide 34: Results in Q4/15
Results in Q4/15 Clean CCS net income attributable in EUR mn Q4/15 Q4/14 to stockholders 1 EBIT (1,729) (532) n.m. in EUR mn Financial result 18 (70) n.m. Profit from ordinary activities (1,711) (602) 184% Taxes 403 154 162% Effective tax rate 24% 26% (8)% 348 Net income (1,308) (448) 192% Minorit
Slide 35: Special items and CCS effect
Special items and CCS effect Q4/15 in EUR mn Q4/15 Q4/14 in EUR mn Clean CCS EBIT 187 545 187 CCS gains/(losses) (155) (296) (155) Clean EBIT 32 249 (2) Personnel related costs (2) (12) Unscheduled depreciation (1,493) (699) (1,493) Asset disposals (5) (21) Other (261) (48) (261) Total special items
Slide 36: Cash flow
Cash flow 2015 in EUR mn 2015 2014 in EUR mn Net income (1,255) 527 n.m. (669) Depreciation and (400) 5,159 3,167 63% amortization 5,159 (2,874) (39) Other (669) (433) 55% (530) Sources of funds 3,234 3,262 (1)% (569) (1,255) Change in net working (400) 405 n.m. Net income Depreciation Other Chang
Slide 37: Agenda
Agenda ► Results Q4/15 ► Financial priorities and guidance 37 | OMV Group, Strategy and 2015 results presentation
Slide 38: Financial priorities
Financial priorities Cash Achieve broadly neutral free cash flow after dividends 2015 dividend EUR 1.00 per share 1 Dividend Maintain dividend policy of long-term payout ratio of 30% of net income Strong investment grade credit rating Rating Strong balance sheet (long-term gearing ratio of
Slide 39: Integrated business model provides cash and bottom line resilience
Integrated business model provides cash and bottom line resilience Sources of funds Clean CCS NOPAT in EUR bn in EUR bn 3.6 3.5 3.0 3.3 3.2 2.2 2.0 1.9 1.7 +6% 1.5 (22)% 2015 vs. 2011 2015 vs. 2011 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Brent price in USD/bbl (53)% Upstream 2011 2012 2013
Slide 40: Resilience of OMV's Upstream portfolio in difficult times
Resilience of OMV’s Upstream portfolio in difficult times ► Approx. 90% of current production is operating cash ~90% flow 1 positive at USD 30/bbl USD 30/bbl USD 31-50/bbl USD >50/bbl Sensitivity based calculation for the Upstream production portfolio (2016E), on asset level, excluding exploration c
Slide 41: Oil price needed to be free cash flow neutral after dividends reduced
Oil price needed to be free cash flow neutral after dividends substantially reduced FCF after dividends break-even oil price in USD/bbl ► Neutral free cash flow after dividends at USD ~55/bbl in 2017 (30)% >100 (20)% Headroom for reduction 70 ► OMV Petrol Ofisi divestment ~55 ~40 1 ► CAPEX flexibili
Slide 42: CAPEX guidance further reduced and contingencies planned
CAPEX guidance further reduced and contingencies planned Group CAPEX in EUR bn (27)% Group CAPEX 2016 to be reduced 5.2 (28)% by EUR ~1.4 bn vs. 2014 3.8 (13)% E&A 1 expenditure stepwise 4.4 2.8 reduced to EUR ~0.45 bn in 2016 3.0 2.4 and EUR ~0.3 bn from 2017 2.1 1.7 Further efficiency increa
Slide 43: Significant cost reductions achieved in 2015
Significant cost reductions achieved in 2015 Impact 2015 vs. 2014 Upstream Reduced by USD 3.4/boe: 2015 from - 20 % production costs USD 16.6/boe to USD 13.2/boe 1 Downstream direct Further reduction on top of recent - 4% cash costs Downstream Oil restructuring Material cutback of advertising, consu
Slide 44: Healthy balance sheet in a challenging environment
Healthy balance sheet in a challenging environment Gearing ratio Strong investment grade credit rating in % Moody’s: A3, stable outlook (under review, along with >100 80 other oil and gas companies 1) 60 Fitch Ratings: A-, stable outlook 40 34 30 34 28 26 Hybrid bond of EUR 1.5 bn issued in
Slide 45: Sensitivities on OMV Group
Sensitivities on OMV Group Operating 2016 impact in EUR mn EBIT cash flow Brent oil price (+USD 1/bbl) +40 +35 OMV indicator refining +100 +80 margin (+USD 1/bbl) EUR-USD (USD appreciates +180 +160 by 10 US cents) Note: Materially different Brent and FX levels (vs. current levels) would lead to diff
Slide 46: Financial priorities in a nutshell
Financial priorities in a nutshell ► Focus on cash flow ► Grow dividend as earnings improve ► Maintain strong balance sheet 46 | OMV Group, Strategy and 2015 results presentation
Slide 47: Q&A
OMV Aktiengesellschaft OuvV Moving more. Moving the future. O M V
Slide 48: Break
Break OMV Aktiengesellschaft
Slide 49: Johann Pleininger
Johann Pleininger Member of the Executive Board responsible for Upstream OMV Aktiengesellschaft
Slide 50: OMV Upstream asset base
OMV Upstream asset base 2,824 Key figures 2015 Clean EBIT 2,154 2,086 in EUR mn 1,669 OMV produced an average of 303 kboe/d and its 139 proven reserves amounted to 1,028 mn boe 2011 2012 2013 2014 2015 Around two thirds of total production from 288 303 288 309 303 Romania and Austria Production
Slide 51: Key priorities for Upstream – Value over volume growth
Key priorities for Upstream – Value over volume growth ► Rigorous spending discipline on CAPEX, OPEX, and E&A 1 Cash ► Group-wide cost reduction and capital efficiency program management ► Focus on highly profitable barrels Portfolio ► Focus all activities on 3 core and selected development areas fo
Slide 52: Agenda
Agenda ► Cash management ► Portfolio focus ► Reserve replenishment 52 | OMV Group, Strategy and 2015 results presentation
Slide 53: OMV Upstream has taken decisive actions to adjust to market environment
OMV Upstream has taken decisive actions to adjust to current market environment in EUR bn 1 (44)% ► Rephased and optimized long-term Reduced capital 2.7 delivery projects 1.9 1.5 expenditure ► Cut of non-committed CAPEX ► Focus on projects in development 2014 2015 2016 2017/18 2 in EUR mn 3 (35)% Re
Slide 54: Focus on cost reduction and capital efficiency
Focus on cost reduction and capital efficiency Reductions of EUR 1 bn vs. 2014 in EUR bn (20)% 4.7 Achievements 2015 3.7 CAPEX excl. E&A OPEX savings of EUR 90 mn Headcount reduced by 9% 1 Office costs reduced by 12% E&A expenditures Number of new wells drilled reduced by 30% OPEX 2014 2015
Slide 55: Agenda
Agenda ► Cash management ► Portfolio focus ► Reserve replenishment 55 | OMV Group, Strategy and 2015 results presentation
Slide 56: Upstream activities will be focused
Upstream activities will be focused Edvard Grieg (Lundin), Norway Urengoy, Russia (source Gazprom) Schönkirchen, Austria Ashtart, Tunisia New Zealand Core regions are mid-term self-funding and contribute ≥ 50 kboe/d Core region 1 – CEE Core region 3 – MEA Core region 2 – North Sea Development areas
Slide 57: Core 1 CEE – counter natural decline rates at reasonable costs
Core 1 CEE – counter natural decline rates at reasonable costs Beating the decline … … at reasonable costs Production in Romania and Austria, OPEX in USD/boe in kboe/d up to (23)% (4)% 1 204 202 190-200 16 12 Field development Totea Deep, Romania 2014 2015 2016 2017/18 2014 2015 2016 2017/18 Drive
Slide 58: Neptun Deep – Black Sea Romania
Neptun Deep – Black Sea Romania ExxonMobil (Operator, 50%), OMV Petrom (50%) Domino-1 discovery in 2012: ROMANIA Neptun RUSSIA Deep UKRAINE 70.7 meters of net gas pay, preliminary estimate 1.5-3 tcf BULGARIA GEORGIA TURKEY (42-84 bcm; 250-500 mn boe), gross 500km Investments for E&A phase: USD ~1.5
Slide 59: Core 2 North Sea – deliver development projects and optimize portfolio
Core 2 North Sea – deliver development projects and optimize portfolio Aasta Hansteen Schiehallion Edvard Grieg Gudrun Gullfaks Ramp up production … with declining in kboe/d production costs OPEX in USD/boe 100 (35)% 24 48 50 37 16 0 Rowan Wiking rig, Edvard Grieg platform and flotel 2014 2015 2016
Slide 60: Core 3 MEA – deliver Nawara, pursue growth opportunities in Middle East
Core 3 MEA – deliver Nawara, pursue growth opportunities in Middle East OMV stays committed to Libya and Yemen Production in kboe/d OPEX in USD/boe 60 Upside of 40 USD 7/boe 15 11 23 0 Shuwaihat 5 well, UAE 2014 2015 2016 2017/18 2014 2015 2016 2017/18 MEA region Upside Libya/Yemen Upside Libya/Yeme
Slide 61: Target growth opportunities in the United Arab Emirates and Iran
Target growth opportunities in the United Arab Emirates and Iran United Arab Emirates North West Offshore Ongoing appraisal activities in the Shuwaihat sour gas and Abu Dhabi condensate field Exploration Activity Agreement with ADNOC regarding Shuwaihat East Exploration Area exploration program
Slide 62: Agenda
Agenda ► Cash management ► Portfolio focus ► Reserve replenishment 62 | OMV Group, Strategy and 2015 results presentation
Slide 63: Reserve replenishment: focus on acquisitions in low-cost areas
Reserve replenishment: OMV to focus on acquisitions in low-cost areas Proved reserves in mn boe 1,028 I Reserve Replacement Rate (RRR) of 100% II III Reserve replenishment through I Acquisitions in low-cost areas II Near-field exploration and appraisal III State-of-the-art reservoir exploitation
Slide 64: Acquisitions: Achimov IV/V – Long-term stable production, high reserve additions
Acquisitions: Achimov IV/V – Long-term stable production, high reserve additions Russia offers significant reserves growth potential – remaining reserves of ~410 bn boe 1 Costs along the entire upstream value chain are among the lowest in the world Cooperation with Gazprom along the entire val
Slide 65: Exploration: Reduce risk exposure in exploration portfolio
Exploration: Reduce risk exposure in exploration portfolio E&A expenditures in EUR mn 693 (60)% ► Reduce exposure to high-risk, deep-water, long lead-time drilling Near-field 35% ► Focus on low-cost, near-field opportunities close to existing 300 High-risk/ infrastructure frontier/ 65% 60% emerging
Slide 66: Production: Maintain 300 kboe/d, upside from Russia and Libya/Yemen
Production: Maintain 300 kboe/d, upside from Russia and assumed return of Libya/Yemen OMV production 300 kboe/d stable portfolio until end of in kboe/d decade 1 360 Minimize decline and ramp-up Upside potential development projects 300 Upside potential mainly from Libya/ Yemen and Russia Pro
Slide 67: Upstream priorities in a nutshell
Upstream priorities in a nutshell ► Cash management ► Portfolio focus ► Reserve replenishment ► Strategic partnership 67 | OMV Group, Strategy and 2015 results presentation
Slide 68: Manfred Leitner
Manfred Leitner Member of the Executive Board responsible for Downstream OMV Aktiengesellschaft
Slide 69: Downstream Oil and Downstream Gas: two fundamentally different sides of a coin
Downstream Oil and Downstream Gas: two fundamentally different sides of a coin 2 20 Downstream Oil: Successfully 0 0 restructured into a 2011 2012 2013 2014 2015 strong cash generator 2 20 Downstream Gas: 0 0 Restructuring just started 2011 2012 2013 2014 2015 Restructuring process Clean CCS RoNA (r
Slide 70: Agenda
Agenda ► Downstream Oil ► Downstream Gas ► Downstream in a nutshell 70 | OMV Group, Strategy and 2015 results presentation
Slide 71: OMV's Downstream Oil business has caught up with international majors
OMV’s Downstream Oil business has caught up with international majors (27)% Downstream Oil rolling ROACE 1 Assets restructured Net assets, in EUR 2011 2015 (17)% OPEX reduced Clean cash costs/ refined product sales, in EUR/t 2011 2015 +92% Borealis contributed OMV share of net income, in EUR 2011 20
Slide 72: Downstream Oil has become the cash engine for OMV Group
Downstream Oil has become the cash engine for OMV Group Strong free cash flow contribution even in times of low refining margins in EUR bn Ø annual cash Cash flow from contribution divestments from operations of EUR ~0.7 bn Free cash flow w/o divestments 2012 2013 2014 2015 OMV indicator refining ma
Slide 73: Mid-term outlook for European oil downstream environment
Mid-term outlook for European oil downstream environment remains challenging Further refinery closures required to rebalance the market 1 Europe, in mn t 60 up to (10)% Declining demand and growing import 40 volumes Strongest decline expected for fuel oil (-25%) and gasoline (-15%) 810 750 Fur
Slide 74: Restructuring of Downstream Oil results in superior integration
Restructuring process of Downstream Oil results in superior integration of the business Equity crude in % of refining capacity Best in class capacity Upstream utilization of OMV refineries 24 25 Refinery utilization 2, in % 7 2014 2014 2015 100 Retail sales volume in % of refining capacity Stable re
Slide 75: Optimization of retail network and sharpened brand positioning
Optimization of retail network and sharpened brand positioning Throughput per station, in mn liters +15% Highly efficient retail network with focus on: ► Optimal brand positioning ► Two brand strategy in Austria and Romania increase sales volume 2013 2014 2015 Retail EBIT per filling station, in TEU
Slide 76: High value petrochemical products as superior alternative to gasoline
High value petrochemical products as superior alternative to gasoline USD >3/bbl higher refining margins Refining indicator and petrochemical margin, in USD/bbl 12 Petrochemicals Fuels 8 4 Contract with Borealis extended: Offtake of ethylene 0 and propylene from OMV 2013 2014 2015 secured until 20
Slide 77: OMV Petrol Ofisi only cause for structural action in Downstream Oil
OMV Petrol Ofisi only cause for structural action in Downstream Oil’s portfolio On the one hand, Turkey is the single … on the other hand, OMV Petrol largest growth market in Europe… Ofisi has limited integration within Oil product demand Turkey, in mn t 1 OMV’s Downstream Oil business +25% Group-
Slide 78: Downstream Oil will continue to improve its competitive position
Downstream Oil will continue to improve its competitive position Cash Robust free cash flow generation focus Divestment of OMV Petrol Ofisi HSSE Superior Selective retail and petrochemical investments integration to increase integrated margin Improved margin management Operational Maximiza
Slide 79: Agenda
Agenda ► Downstream Oil ► Downstream Gas ► Downstream in a nutshell 79 | OMV Group, Strategy and 2015 results presentation
Slide 80: Mid-term outlook for European gas downstream environment
Mid-term outlook for European gas downstream environment remains challenging Contracted supply largely Export potential to Europe exceeds demand sufficient to cover 2020 demand substantially EU 28, in bcm in bcm 523 Supply Potential upside oversupply 135 455 403 Supply 100 upside 455 Supply upside 2
Slide 81: Europe will be swing market for LNG
Europe will be swing market for LNG Global liquefaction capacity Especially destination-flexible US LNG expected to swing increasing by almost 50%, between Europe/ Asia depending on best pricing, in bcm in bcm Europe +190 590 ~25- 70 US 52 75-120 Russia 2014 2020 400 15 Australia China/Japan 35 ~0-
Slide 82: Decisions on asset portfolio taken
Decisions on asset portfolio taken Restructure gas Takeover of 100% of EconGas serves as the basis for sales business all OMV gas sales activities Divestment of Wind Park Dorobantu (Romania) in progress Minimize power exposure Power Plant Samsun (Turkey): Divestment under review Power Plant
Slide 83: Gas sales business pivotal to market OMV's increasing supply portfolio
Gas sales business pivotal to market OMV‘s increasing supply portfolio North West Europe: Austria and Romania: 2 Growing supply position Stable supply position North West Europe 4 Increase market share to Keep market leader prepare for future supply Austria position and market volumes 4 share
Slide 84: Nord Stream 2 engagement secures gas flows to Baumgarten
Nord Stream 2 engagement secures gas flows to Baumgarten and for Gas Connect Austria Nord Stream 1+2 ► Project with attractive, non-regulated return ► OMV share: 10% ► Total project investments (100%) of EUR ~10 bn incl. financing costs expected ► Major milestones: ► FID expected in second half 2016
Slide 85: Downstream Gas aims to turn around the business by restructuring
Downstream Gas aims to turn around the business by restructuring stringently Create efficient basis for gas sales business Minimize power exposure Restructure Reduce exposure in regulated transport business Increase utilization of storages HSSE Position for Develop strong gas sales busines
Slide 86: Agenda
Agenda ► Downstream Oil ► Downstream Gas ► Downstream in a nutshell 86 | OMV Group, Strategy and 2015 results presentation
Slide 87: Downstream priorities in a nutshell
Downstream priorities in a nutshell Cash focus Superior integration Operational excellence Restructure Downstream Gas and position for future 87 | OMV Group, Strategy and 2015 results presentation
Slide 88: Rainer Seele
OMV Aktiengesellschaft Rainer Seele Chairman of the Executive Board and CEO OMV Aktiengesellschaft
Slide 89: OMV in 2020 – Sustainable resource base with improved profitability
OMV in 2020 – Sustainable resource base with improved profitability ► Cash: Broadly free cash flow neutral after dividends ► Production: 360 kboe/d including upside from Russia and Libya/Yemen ► Reserve Replacement Rate: 100% ► Downstream Gas: Restructured, profitable European gas business ► Downstr
Slide 90: Q&A
OMV Aktiengesellschaft OuvV Moving more. Moving the future. O M V
Slide 91: OMV Aktiengesellschaft
OV OMV OMV Aktiengesellschaft OuvV Moving more. Moving the future. O M V