Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Non-Deal Roadshow (November 2020)
65 slides from Omv's roadshow presentation, November 2020
Slide 1: Capital Market Story November 2020
Capital Market Story November 2020 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.
Slide 3: OMV at a glance – Three strong pillars, integrated along the value chain
OMV at a glance – Three strong pillars, integrated along the value chain Chemical Recycling Mechanical (ReOil®) Recycling Upstream Downstream Chemicals 5 core regions: CEE, MEA, 3 Refineries in Austria, Germany 75% share in Borealis, North Sea, Russia and and Romania with 17.8 mn t capacity a
Slide 4: Integrated business model comes with resilience and stability
Integrated business model comes with resilience and stability Refinery utilization rates OMV’s refining business is highly ~50% OMV versus EU 16 peers integrated with its own retail Captive refining 94% OMV business and its chemical 90% demand from European business retail and Borealis 79% Refinin
Slide 5: Global footprint – Strong European core and well positioned to benefit from demand in growth markets
Global footprint – Strong European core and well positioned to benefit from demand in growth markets Upstream 1 Integrated position in Germany: The Burghausen refinery is highly integrated with the Borealis Burghausen site Downstream Integrated position in Austria: Around 10% equity crude oil suppli
Slide 6: Why invest
Why invest Integrated business Focus on non-energy Well positioned to model along the chemical products, and become a leading value chain thus transitioning for player in the circular business success in economy a low-carbon future Clear commitment Resilient operating Progressive dividend to the Par
Slide 7: NET-ZERO 2050 or sooner
OMV’s net-zero ambition for Scope 1 & 2 emissions We will leave familiar paths to develop fundamentally innovative low-emission technologies NET-ZERO We will push innovative approaches like Scope 1 & 2 emissions carbon capture and storage/usage as well as hydrogen in our operations We will str
Slide 8: Committed to Paris Climate Agreement – New, more ambitious emission targets for 2025
OMV is committed to the goals of the Paris Climate Change Agreement – New, more ambitious emission targets for 2025 SCOPE 1 – target 2025 (vs. 2010) SCOPE 3 – target 2025 (vs. 2010) Reduce the carbon intensity of operations 1 by Reduce the carbon intensity of product portfolio 2 by ≥30% (previously
Slide 9: Clear priorities for a low carbon future
Clear priorities for a low carbon future CO2 emissions natural gas-fired (50)% Natural gas offers immediate and power plant vs. coal Natural gas substantial emission reduction potentials CO2 emissions (20)% CNG vs diesel GDP and improving living standards drive chemicals Per capita Non-energy demand
Slide 10: Focus on natural gas – Share in Upstream production to rise to at least 65 percent
Focus on natural gas – Share of natural gas in OMV’s Upstream production will be increased to at least 65 percent Share of natural gas in OMV’s Upstream production Major natural gas fields contributing Pohokura New Zealand Aasta Hansteen Norway >65% Yuzhno Russkoye Russia 60% 52% SK 408 Malaysia Pro
Slide 11: OMV closed the acquisition of a controlling interest in Borealis
OMV closed the acquisition of a controlling interest in Borealis, repositioning the company for a low carbon future Key financials of Borealis Market presence of Borealis Borealis Employees Sales 2019 2 Leading polyolefin producer Major operations in Austria, Employees excluding JV Belgium, France,
Slide 12: OMV becomes #1 in ethylene and propylene capacity in Europe
OMV becomes #1 in ethylene and propylene capacity in Europe Top ethylene & propylene capacities in Europe, 2019, mn t ► OMV’s global monomer capacity will OMV 1 2.0 2.0 0.7 4.7 increase by over 50% to 6.4 mn t Ineos 4.4 ► Thereof European ethylene and propylene: 4.0 mn t DOW 4.4 ► Thereof aromatics
Slide 13: OMV extends value chain into polymers, becoming one of the world's leading producers
OMV extends value chain into polymers, immediately becoming one of the world’s leading producers Top 10 polyolefins capacities Globally, 2019 Mn t ► Borealis deal extends value chain, Sinopec 13.5 providing a natural hedge against cyclicality Exxon 12.9 ► Integrated value chain allows margin Lyondel
Slide 14: Well positioned for growth in cost-advantaged locations
Well positioned for growth in cost-advantaged locations Europe Americas Middle East Belgium – new PDH 1 plant in Kallo, Texas (US) – Baystar JV with Total Abu Dhabi – Borouge located in proximity to port of Antwerp ► 1,000 kt p.a ethane cracker; in ► New Borstar® PP plant at Borouge 3 ► Cost advanta
Slide 15: Borealis is a technology leader with innovative solutions and strong customer relations
Borealis is a technology leader with innovative solutions and strong direct customer relations Innovative company Borstar® Excellent customer relations 6,900 patents granted Borstar® is a multi-modal More than 2,500 direct and 3,000 patents proprietary technology customers and strong pending as of
Slide 16: High specialty share for high-end applications
High specialty share for high-end applications Application examples The growing Bormed™ polyolefin portfolio offers superior technical performance for medical devices, pharmaceuticals, and 60 Advanced diagnostic packaging. Products % specialties Working closely with global OEMs, share in margins Bor
Slide 17: OMV aims to become a significant player in circular economy
OMV aims to become a significant player in circular economy Total investments of up to EUR 1 bn for innovative sustainable solutions planned until 2025 & Waste collection Design for recycling & Chemical recycling mechanical recycling ► Borealis is a co-founder of the ► ReOil® – patented technology,
Slide 18: OMV's proprietary ReOil technology
OMV’s proprietary ReOil® technology – Substitution of crude oil by post-consumer plastics Synthetic Refinery/ Converts used plastics under moderate crude oil petchem process pressure and normal refinery operating temperatures into synthetic crude oil Synthetic crude oil can be used as refinery f
Slide 19: Borealis will substantially strengthen OMV's operating cash flow
Borealis will substantially strengthen OMV’s operating cash flow Illustrative – OMV Operating cash flow 5.4 excluding changes in net working capital Borealis EUR bn including 40% 1.4 4.3 dividends 3.9 4.2 from Borouge Downstream 3.2 3.0 excluding 1.7 Borealis Downstream dividends including 36% in Bo
Slide 20: Challenging macro environment
Challenging macro environment Oil prices USD/bbl OMV indicator refining margin Europe USD/bbl 70 63 6 5.5 62 5.0 4.9 60 5 59 61 50 4 50 43 3 2.3 40 Average Brent price 47 30 2 Average realized crude price 37 0.9 30 1 20 26 0 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Gas prices Ethy
Slide 21: Multi-billion action plan to safeguard financial strength
OMV reacted swiftly – Multi-billion action plan to safeguard financial strength in the current challenging environment OMV Reaction: Reduce organic investments by around 30% OMV is responding the 1 to around EUR 1.7 bn in 2020 current situation with targeted measures to safeguard the company’s 2 C
Slide 22: Forward integration into chemicals will make OMV more resilient
Forward integration into chemicals will make OMV more resilient OMV Borealis Operating cash flow Operating cash flow (incl. Borouge dividends) EUR bn EUR bn -20% +6% +6% (20)% 2.9 1.1 1.1 Downstream 2.3 excluding 1.2 Borealis dividends 1.5 Upstream 1.9 1.0 OMV OMV Borealis Borealis 9m/19 9m/20 9m/19
Slide 23: Two highly free cash flow generative businesses are combined
Two highly free cash flow generative businesses are combined OMV Borealis Operating cash flow excluding Borealis dividends Operating cash flow Organic invest-cash flow Organic invest-cash flow EUR bn EUR bn 4.0 1.4 3.8 1.3 1.3 3.2 1.1 2.3 1.9 1.9 1.6 0.5 0.5 1.3 0.4 0.4 2017 2018 2019 9m/20 2017 201
Slide 24: Synergies of at least EUR 800 mn by end-2025
Synergies of at least EUR 800 mn by end-2025 Operational cost savings Combined purchasing Debottlenecking Increased capital efficiency ≥800 EUR mn by end-2025 Tax benefits 24 | OMV Capital Market Story, November 2020
Slide 25: Capital allocation
Capital allocation 1 ORGANIC CAPEX 2 DEBT REDUCTION PROGESSIVE 3 DIVIDEND POLICY 25 | OMV Capital Market Story, November 2020
Slide 26: Disciplined capital spending remains an imperative
Disciplined capital spending remains an imperative OMV Borealis OMV & Borealis Organic CAPEX CAPEX combined organic EUR bn EUR bn CAPEX ► Flexibility to adjust EUR bn 2.5-3.0 CAPEX spending ~2.4 1 below the guidance, if that’s required by the 1.8 situation ~1.7 0.7 0.5 2017-19 2020 2017-19 2020 2020
Slide 27: OMV has a healthy balance sheet despite major acquisitions and record dividends
OMV has a healthy balance sheet despite major acquisitions and record dividends Net debt and gearing ratio 1 excluding leases EUR bn, % Long-term 26% gearing ratio target 1 22% excluding leases 21% 30 19% 19% ≤ % 12% 3.7 11% 11% End of Sep 2020 3.6 3.2 3.4 OMV cash position 7.3 2.7 1.7 1.7 1.8 EUR b
Slide 28: Good access to financial market at attractive conditions
Good access to financial market at attractive conditions Financing activities in 2020 Coupon in Date of issue Bond Amount Maturity 4.5 % September 2020 Hybrid bond EUR 750 mn 2.50 fixed 1 Perp-NC6 September 2020 Hybrid bond EUR 500 mn 2.875 fixed 1 Perp-NC9 EUR bn June 2020 Eurobond EUR 750 mn 0.00
Slide 29: Strong track record in active portfolio management
OMV has a strong track record in active portfolio management – OMV will reduce debt while delivering on dividend policy DPS DPS Progressive EUR EUR dividend policy reconfirmed 1.00 Acquisitions 1.75 Borealis acquisition EUR 6 bn EUR 3.8 bn 2015 2019 Mid-term Divestments: Divestment program EUR 3 bn
Slide 30: Good progress on EUR 2 bn divestment program
Good progress on EUR 2 bn divestment program Divestment of OMV retail Divestment of 51% share network in Germany in Gas Connect Austria Signing expected in Q4/20 Signed on Sep 23, 2020 Closing expected in H1/21 Closing expected in H1/21 Net debt reduction EUR (570) mn EUR 2 bn Divestments in
Slide 31: Clear commitment to our progressive dividend policy
Clear commitment to our progressive dividend policy Dividend Per Share EUR 1.75 1.75 Progressive dividend policy: OMV aims to 1.50 increase the dividend or at least maintain it at the respective previous year’s level 1.20 1.00 OMV has maintained its dividend despite the extraordinary difficult m
Slide 32: Facts & Figures – Upstream
Facts & Figures – Upstream 32 | OMV Capital Market Story, November 2020
Slide 33: Upstream – Improved portfolio, lower cost
Upstream – Improved portfolio, lower cost Production volume Production cost Kboe/d USD/boe +61% +61% (50)% -50% 487 13.2 Asia-Pacific 427 MEA 10.6 348 8.8 303 311 North Sea 7.0 6.6 Russia CEE 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 33 | OMV Capital Market Story, November 2020
Slide 34: Upstream – Strengthened reserve base
Upstream – Strengthened reserve base 1P Reserves Reserve Replacement Rate Mn boe 3 years Ø RRR, % 1,332 166 1,270 160 49 128 Asia-Pacific 1,146 1,030 266 285 MEA 116 120 122 North Sea 232 229 Russia 70 602 569 CEE 2016 2017 2018 2019 2016 2017 2018 2019 34 | OMV Capital Market Story, November 2020
Slide 35: Successful strategy execution in Upstream
Successful strategy execution in Upstream Developed Asia-Pacific Expanded footprint in New Zealand by increasing stake in existing into core region producing assets Partnered with Sapura’s upstream business in Malaysia – Platform for further regional growth, capitalizing on growing Asian markets
Slide 36: Upstream – Major projects
Upstream – Major projects Development & Execution Project Country Type Production start Cum. production Peak production Working interest Operated FID primary year mn boe kboe/d % year Nawara Tunisia Gas 2020 40-50 ~10 50.0 by OMV 2014 SARB/Umm Lulu UAE Oil 2018 450 ~43 20.0 no 2013 Ghasha Phase 1 UA
Slide 37: Facts & Figures – Downstream
Facts & Figures – Downstream 37 | OMV Capital Market Story, November 2020
Slide 38: Downstream Oil Europe – European Downstream Oil Value Chain
Downstream Oil Europe – European Downstream Oil Value Chain 2019 figures Refinery Product supply and Petrochemical/ commercial/ Crude supply production logistics retail sales Purchase of other Purchase of Retail raw material 1.3 mn t 1 finished products 3.2 mn t 2 6.5 mn t 49% Captive market 3 Equit
Slide 39: Top position in European refining benchmarking
Continuous cost and performance programs lead to a top position in European refining benchmarking HSB Solomon Associates LLC top ranking for Schwechat and Burghausen 1 and upside for Petrobrazi Net Cash Margin Net Cash Margin Net Cash Margin Schwechat, in USD/bbl Burghausen, in USD/bbl Petrobrazi, i
Slide 40: Strong profit contribution from the retail business
Strong profit contribution from the retail business 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 >180 >180 3.6 3.7 3.8 3.8 ~3.8 ~25%
Slide 41: Internationalization of Downstream Oil – Integrated position in UAE
Internationalization of Downstream Oil – Benefitting from an integrated position in UAE OMV’s integrated value chain in the United Arab Emirates enhances profitability, increases optionality and reduces volatility Upstream Refining & Trading Petrochemicals/Polymers Sarb and Umm 20.0% 15.0% ADNOC Ref
Slide 42: ADNOC Refining – Key facts
ADNOC Refining – Key facts ► Refining capacity of 922 kbbl/d: ► Ruwais Refinery East: 420 kbbl/d ► Ruwais Refinery West: 417 kbbl/d ► Abu Dhabi Refinery: 85 kbbl/d Dubai ► Petrochemical production: 1.7 mn t p.a. Abu Dhabi ► Associated infrastructure: Ruwais site ► Advanced logistics networks, utilit
Slide 43: ADNOC Refining – Platform for further profitable growth
ADNOC Refining – Platform for further profitable growth SELF-FUNDED GROWTH Profitable long-term growth pipeline Integrate in petchem Increase feedstock value chain Detailed feasibility studies for future Operational excellence projects ongoing flexibility (eg. new refinery) Upgrade naphtha strea
Slide 44: Downstream Gas – Downstream Gas Value Chain
Downstream Gas – Downstream Gas Value Chain 2019 figures Gas supply Gas logistics Gas marketing sales Equity production in Romania 41 TWh Gas sales to third parties Equity production 137 TWh in Norway 26 TWh Sales in Europe (ex-Romania) 88 TWh Equity production Gas supply in Austria portfolio 7 TWh
Slide 45: Facts & Figures – Borealis
Facts & Figures – Borealis 45 | OMV Capital Market Story, November 2020
Slide 46: OMV closed agreement for increasing its share in Borealis to 75%
OMV closed transformative agreement for increasing its share in Borealis to 75% OMV acquired additional 39% share in Borealis, increasing its share to a controlling interest of 75% Purchase price of USD 4.68 bn OMV is entitled to dividends distributed after 31 December 2019 Cash-out (net cas
Slide 47: Borealis – Strong profit contribution from specialties
Borealis – Strong profit contribution from specialties Total Sales by Specialty products in segment, 2019 Borealis margin, 2019 At-equity pro- Specialty products rata sales 1 17% EUR Fertilizers & 15% ~60% ohers 9.8 bn 53% Base 15% chemicals 2 Polyolefins 1 including 40% Borouge sales 2 Base chemica
Slide 48: Borealis has a global footprint
Borealis has a global footprint Stenungsund Porvoo • Ethylene: 380 kt • PE: 390 kt • Ethylene: 620 kt • Propylene: 230 kt • PP: 220 kt • Propylene: 230 kt • Aromatics & butadiene: 175 kt • Phenol & Acetone: 300 kt • PE: 770 kt Antwerp • Comp.: 42 kt Geleen • PE: 120 kt • Others: 120 kt • Comp: 90 kt
Slide 49: Borouge, the largest polyolefin site in the world
Borouge, the largest polyolefin site in the world – benefitting from competitive feedstock and access to Asian growth markets ► The world’s largest integrated polyolefins complex ► JV between ADNOC (60%) and Borealis (40%) established in 1998, first operations started in 2001 ► Following the start u
Slide 50: Appendix
Appendix 50 | OMV Capital Market Story, November 2020
Slide 51: Outlook 2020
Outlook 2020 2019 Outlook 2020 Brent oil price (USD/bbl) 64 40 Average realized gas price (EUR/MWh) 11.9 <10 Total hydrocarbon production (kboe/d) 487 450–470 1 OMV European indicator refining margin (USD/bbl) 4.4 ~ 2.5 (previously ~3.0) Ethylene/propylene net margin (EUR/t) 433 <433 Utilization rat
Slide 52: Economic environment – Sensitivities of the OMV Group results
Economic environment – Sensitivities of the OMV Group results in 2020 Annual impact excl. hedging Clean CCS Operating Result Operating cash flow in EUR mn Brent oil price (USD +1/bbl) +60 +25 Realized gas price (EUR +1/MWh) +140 +90 OMV indicator refining margin in Europe (USD +1/bbl) +110 +85 Ethyl
Slide 53: Multi-billion action plan to safeguard financial strength
Multi-billion action plan to safeguard financial strength Reduce organic investments by around 30% in 2020 1 OMV 2020 CAPEX reduced from EUR 2.4 bn to around EUR 1.7 bn Further optimization of combined business with Borealis in 2021/22 Cut costs by more than EUR 200 mn and realize synergies with
Slide 54: Stringent cost discipline
Stringent cost discipline OPEX savings In EUR mn >600 Operational efficiency in both >460 >430 Upstream and Downstream Process optimization and >330 harmonization Capture economies of scale and >200 strictly manage overhead costs Leverage digitalization and optimize IT processes Procuremen
Slide 55: Financing – Successful financing activities
Financing – Successful financing activities Date of issue Bond Amount in EUR mn Coupon in % Maturity September 2020 Hybrid bond (XS2224439385) 750 2.50 fixed 1 Perp-NC6 September 2020 Hybrid bond (XS2224439971) 500 2.875 fixed 1 Perp-NC9 June 2020 Eurobond (XS2189614014) 750 0.00 fixed 16/06/2023 Ju
Slide 56: Financing – Strong credit rating
Financing – Strong credit rating A3 A- Outlook negative Outlook negative March 16, 2020 March 13, 2019 56 | OMV Capital Market Story, November 2020
Slide 57: Shareholders – Diversified international shareholder base
Shareholders – Diversified international shareholder base Shareholder structure 1 Geographical distribution of 0.4% 0.1% institutional investors 1 56.4% 7.9% 11% Consortium agreement – 31.5% 5% 30% ÖBAG & MPPH 5% 327.3 mn 27.9% 5% shares 6% 6% 9% 23% 24.9% 7.4% 43.2% Free float United States Austria
Slide 58: External recognition of Best-in-Class ESG performance
External recognition of Best-in-Class ESG performance Member of Rated by "Leadership A–" rating in the climate change category. OMV is one of the top 14 companies in the global oil and Eurozone 120 gas sector. & Europe 120 since 2016 since 2020 since 2018 Prime Status by ISS ESG, with B– score since
Slide 59: Corporate Governance – OMV has a two-tier Board structure
Corporate Governance – OMV has a two-tier Board structure Supervisory Board Two boards with distinctive roles: Executive Board (EB) responsible for managing the company and representing it vis à vis third parties Supervisory Board responsible for monitoring and guiding the EB Supervisory Boa
Slide 60: 2020 AGM – Key additions to the Remuneration Policy
2020 AGM – Key additions to the Remuneration Policy for the Executive Board compared to previous years Objectives Measures taken Consideration of explicit sustainability criteria Emphasising (CO2 efficiency and diversity) in the LTIP sustainability Strengthening of the Equity Deferral (in future
Slide 61: Annual Bonus and Equity Deferral for the Executive Board
Annual Bonus and Equity Deferral for the Executive Board Key elements Financial Targets (currently 80%) 3 financial and operational performance criteria ► Reported Net ► Clean CCS ROACE 2 Income1 (3-year average) ► Fatal accidents at work Maximum vesting of 150% of target level ► Rate of lost ti
Slide 62: Long-Term Incentive Plan (LTIP) for the Executive Board
Long-Term Incentive Plan (LTIP) for the Executive Board Key elements Performance period of 3 years Financial Targets (currently 85%) Maximum vesting of 200% of target level ► Free ► Relative Total Shareholder 2 financial performance criteria focusing on long-term Cash Flow 1 Return value gener
Slide 63: Summary of variable remuneration 2020
Summary of variable remuneration 2020 Annual Bonus & Equity Deferral Long-Term Incentive Plan (LTIP) 80% 85% Financial Targets Financial Targets ► 40% Reported Net ► 40% Clean CCS Income 1 ROACE 2 ► Fatal accidents at work ► 50% Free ► 35% Relative Total (3-year average) Cash Flow 3 Shareholder Retu
Slide 64: OMV's ESG performance relative to peers
OMV’s ESG performance relative to peers Relative rating vs industry peers top 10% top 10% top 5% top 12% SCORE 70 AAA B– 2 76 Environmental 78 6.3 73 Social 66 6.6 79 Governance 67 1 6.5 76 1 Governance is the sub-category of Economic dimension. Here Economic dimension score is presented. Note: time
Slide 65: OMV Aktiengesellschaft
The energy ouv for a better life. O M V
OMV Aktiengesellschaft — Non-Deal Roadshow (November 2020) on 6ix