OMV Q 207 Results Conference Call Rainer Seele Chairman of the Executive Board and CEO May, 207 OMV Aktiengesellschaft
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Favorable macroenvironment Oil price Brent in USD/bbl 80 60 40 20 34 OMV oil price forecast 207 208 209 2020 202 Price 55 65 70 75 75 46 46 49 54 OMV indicator refining margin in USD/bbl 8 6 4 2 5, 4,7 3,7 5,6 5,4 0 25 20 5 0 5 0 Q/6 Q2/6 Q3/6 Q4/6 Q/7 Gas prices in EUR/MWh 4,2 4,0 4, 7,6 3,6 3,3 3, Central European Gas Hub 2, Realized gas price (Upstream) 9, 5,4 Q/6 Q2/6 Q3/6 Q4/6 Q/7 0 600 400 200 Q/6 Q2/6 Q3/6 Q4/6 Q/7 Ethylene/propylene net margin 2 in EUR/t 374 357 405 366 385 Q/6 Q2/6 Q3/6 Q4/6 Q/7 Note: All figures are quarterly averages Converted to MWh using a standardized calorific value across the portfolio ethylene/propylene and naphtha including standard processing consumption 3 2 Spread between market prices of
Key messages OUTSTANDING PERFORMANCE Highest quarterly production since 0 years 96% refinery utilization Strong increase in Clean CCS Operating Result Record free cash flow in a 54 USD/bbl oil price environment PORTFOLIO CHANGES Signed acquisition of 24.99% stake in Yuzhno Russkoye gas field in Russia Signed sale of OMV Petrol Ofisi in Turkey Signed financing agreements for Nord Stream 2 COST DISCIPLINE Upstream production cost below USD 9/boe Cost savings target for 207 of more than EUR 250 mn OMV aligned the production cost definition with its industry peers. Starting with Q/7, administrative expenses and selling and distribution costs are excluded. 4
Outstanding performance in Q 207 Clean CCS Operating Result Clean CCS net income attributable to stockholders Clean CCS earnings per Share in EUR 262 42 805 32 494 Upsteam Downstream 74 53 502 0.53 0.47.54 Q/6 Q4/6 Q/7 Q/6 Q4/6 Q/7 Q/6 Q4/6 Q/7 Operating Result Net income attributable to stockholders Earnings per share in EUR,037 2.8 508 Upstream 43 540 Downstream 95 72 0.29 Q/6 (69) Q4/6 Q/7 Q/6 (378) Q4/6 Q/7 Q/6 (.6) Q4/6 Q/7 Note: Consolidation, Corporate & Other Operating Result are not depicted in the charts Figures on this and the following slides may not add up due to rounding differences. 5
Threefold increase of Group Clean CCS Operating Result versus Q 206 Clean CCS Operating Result in mn EUR 6 262 Q 206 253 Market effects Upstream +47 Downstream +74 Realized oil price increased by 59% 32 Operational effects 32 DD&A 63 Market effects 50 2 Operational Borealis effects contribution 40 DD&A 49 Corporate & Other 805 Q 207 Q 207 vs Q 206: Upstream Realized gas price increased by 8% Favorable foreign exchange effects Higher sales volumes in Libya and in Norway Lower production costs due to strict cost management Lower depreciation mainly due to upward reserves revisions and lower asset base Downstream Higher petrochemicals and indicator refining margins Higher result from Borealis Realized derivative gains and valuation effects in Downstream Gas Lower depreciation mainly due to reclassification of OMV Petrol Ofisi as asset held for sale Note: Market effects defined in Upstream as oil and gas prices, foreign exchange impact, price effect on royalties and hedging and in Downstream as refining indicator margin, petrochemical margins and spark spreads Depreciation, Depletion and Amortization
Strong free cash flow generation Sources and uses of cash in Q 206 Sources and uses of cash in Q 207 Free cash flow (45),750 828 Free cash flow +,320 60 579 745 923 430 Sources Uses Sources Uses Divestment proceeds Cash flow from operating activities Cash flow for investments 7 Sources and uses excluding financing activities
Portfolio changes Sale of OMV Petrol Ofisi to Vitol Group EUR.4 bn transaction value Closing Q3 207 at the latest Agreed to finance up to 0% of Nord Stream 2 project cost Total project cost of EUR 9.5 bn Financing of 70% of project costs aimed to be raised from international lenders by Nord Stream 2 AG Acquisition of 24.99% stake in Yuzhno Russkoye gas field EUR.75 bn purchase price Economic effective date Jan 207 Closing by Q4 207 Signed cooperation with Verbund Cooperation initiative to tackle climate and future energy topics OMV to acquire 40% stake in Smatrics, Austria s leading fullservice provider of E-mobility 8
Strict cost discipline Upstream production cost OPEX in USD/boe CAPEX in EUR bn Cost-savings program 2 (6)% (32)% +50 EUR mn 0.6 2.8 >250 8.9 200.9.9.6 0.3 Q 206 Q 207 205 206 207 206 207 Target CAPEX guidance including capitalized Exploration and Appraisal expenditures and excluding acquisitions 2 On comparable basis with 205 9
Strong cash and reduced net debt position Net debt development in EUR bn 4.0 3.0 Strong liquidity position as of Q/7 Cash position at EUR 3. bn Committed revolving credit facilities of EUR 3.6 bn (undrawn).7 Target long term gearing ratio 30% Dec 3, 205 Dec 3, 206 Mar 3, 207 Gearing ratio in % 28% 2% 2% 0
Updated Outlook 207 206 Forecast 207 Brent oil price (USD/bbl) 44 55 CEGH gas price (EUR/MWh) 5 > 5 Total hydrocarbon production (kboe/d) 3 320 OMV indicator refining margin (USD/bbl) 4.7 ~ 4.7 Utilization rate refineries 89% >90% CAPEX (EUR bn) 2.9.9 E&A expenditures (EUR mn) 307 300 Cost savings vs. 205 (EUR mn) 3 200 >250 Including production from Pearl Petroleum Company 2 Including capitalized Exploration and Appraisal expenditures and excluding acquisitions 3 On a comparable basis
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Almost double Group Clean CCS Operating Result than previous quarter Clean CCS Operating Result 42 43 Upstream +230 Downstream +3 69 8 37 24 26 45 32 805 Upstream Realized oil price increased by % Realized gas price increased by 28% Higher sales volumes in Libya offset by lower lifting volumes in Norway Lower exploration expenses due to write-off of an exploration well in Q4/6 Lower production costs Lower depreciation due to upward reserves revisions Downstream Significantly higher petrochemical margins slightly offset by lower indicator refining margin Higher Borealis contribution Q4 206 Market effects Operational effects DD&A Market effects Operational Borealis effects contribution DD&A Corporate & Other Q 207 Reversed Q4/6 mark-to-market valuation effects in Downstream Gas Lower depreciation due to reclassification of OMV Petrol Ofisi to assets held for sale 4 Note: Market effects defined in Upstream as oil and gas prices, foreign exchange impact, price effect on royalties and hedging, and in Downstream as refining indicator margin, petrochemicalmargins and spark spreads. Depreciation, Depletion and Amortization
Strong balance sheet Balance Sheet Q 207 vs Q4 206 in EUR bn Highlights Q 207 Tangible & intangible assets Other long term assets Inventories Trade receivables Cash Assets held for sale Other assets 32. 6.3 3.9.7 2.5 2. 3.4 2.3 3.2 6.0 3.8.5 2.6 3. 2.4.8 Stockholders equity Non-controlling interests Trade payables Bonds and other interest-bearing debts Provisions Liabilities associated with assets held for sale Other liabilities 3.2.4 3. 3. 4.9 5.6 0.9 2.3 32. 0.9 3.0 3.7 5.0 5.7. 2.7 EUR 0.3 bn reduction in tangible and intangible assets mainly due to lower investments Assets held for sale decreased due to the closing of OMV UK divestment Other assets decreased as a result of lower derivatives position Decrease in trade payables impacted by the Schwechat turnaround and reduced working capital measures The overall cash position increased by EUR bn Equity ratio increased from 43% to 46% 3-Dec-6 3-Mar-7 3-Mar-7 3-Dec-6 5 Including EUR 80 mn net cash-inflow from the divestment of OMV (U.K.) Limited and excluding the cash position from held for sale assets
Sensitivities on OMV Group in 207 207 impact Operating Result Operating cash flow Brent oil price (USD +/bbl) +35 +30 Gas price (EUR +/MWh) +20 +5 OMV indicator refining margin (USD +/bbl) +0 +85 Petrochemicals margin (EUR +0/t) +5 +0 EUR-USD (USD appreciates by 0 US cents) +60 +25 Excluding at-equity accounted investments Note: Materially different Brent and FX levels (vs. current levels) would lead to different sensitivity results. 6