Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Non-Deal Roadshow (June 2017)
25 slides from Omv's roadshow presentation, Jun 29, 2017
Slide 1: OMV Roadshow presentation
OMV Roadshow presentation Rainer Seele Chairman of the Executive Board and CEO Frankfurt am Main June 29, 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 2016 year-end: 1.03 bn boe (reserves life of ~9 years) ► ~90% of production in EU and OECD countries Do
Slide 4: OMV delivers on strategy
OMV delivers on strategy € € PORTFOLIO COST DISCIPLINE STRONG DIVIDEND RESHAPING CASH FLOW Signed acquisition of 24.99% in Upstream production cost Strong operating cash flow Dividend Per Yuzhno Russkoye gas field in Russia below USD 9/boe Share of High positive free cash flow EUR 1.20 Signed asset
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 Yuzhno Russkoye gas field Reduced exploration Signed Achimov asset swap binding activities in non-core region agreement with Gazp
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 OMV agre
Slide 10: Successful start into 2017
Successful start into 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 1,737 3.52 1,535 3.05 1,148 995 805 1.54 Upsteam 502 321 494 Downstream 2015 2016 Q1/17 2015 2016 Q1/17 2015 2016 Q1/17 Cash flow from opera
Slide 11: Strict cost discipline
Strict cost discipline Upstream production cost CAPEX 1 Cost-savings program 2 OPEX in USD/boe in EUR bn in EUR mn (32)% +50 EUR mn (16)% 2.8 1.9 1.9 >250 10.6 1.6 200 8.9 0.3 Q1 2016 Q1 2017 2015 2016 2017 2016 2017 Target 1 Capex guidance does not include acquisitions 2 On comparable basis with 20
Slide 12: 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 13: 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 14: 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 14 | OMV Group Ro
Slide 15: Updated Outlook 2017
Updated 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 1.9 E&A expenditures (EUR mn) 307 300 Cos
Slide 16: OMV Vision 2020: 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 17: OMV Aktiengesellschaft
OuvV OMV OMV Aktiengesellschaft ouv Moving more. Moving the future. e) M Vv
Slide 18: BACK-UP
BACK-UP OMV Aktiengesellschaft
Slide 19: Major achievements in reshaping OMV’s portfolio
Major achievements in reshaping OMV’s portfolio Sale of 30% in Sale of a 49% Divestment of Closing of OMV Sale of Rosebank stake in Gas OMV UK Petrol Ofisi Aliaga closed; Connect Austria Upstream divestment; terminal in USD 50 mn closed; subsidiary transaction value Turkey received in Q4/16 EUR 601
Slide 20: 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 1.749 bn1) plus cash on the balance sheet as of December 31, 2016 ► The economic effective date is January
Slide 21: 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 22: OMV Petrol Ofisi divestment completed
OMV Petrol Ofisi divestment completed ► Divested OMV Petrol Ofisi to Vitol Group ► Overall transaction value of EUR 1.368 bn ► Net cash impact of slightly below EUR 1 bn in Q2 2017 ► Important step in the implementation of OMV’s corporate strategy 22 | OMV Group Roadshow Presentation, Frankfurt am M
Slide 23: 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 24: 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 25: 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
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