Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Non-Deal Roadshow (March 2018)
38 slides from Omv's roadshow presentation, Mar 13, 2018
Slide 1: #invest in a growing company
#invest in a growing company Rainer Seele OMV Roadshow CEO and Chairman of Presentation the Executive Board May 2018 March 13, 2018 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 – Strong Asset Base
OMV – STRONG ASSET BASE 437 kboe/d 1.15 bn boe 17.8 mn t 2.5 mn t 113 TWh 30 TWh Production, 3m/18 Reserves, 2017 Total refining Total petchem Natural gas sales Gas storage capacity capacity volume, 2017 capacity UPSTREAM DOWNSTREAM OIL DOWNSTREAM GAS 4+1 core and development regions 3 refineries in
Slide 4: Why invest in OMV
WHY INVEST IN OMV Integrated and balanced Geographically focused High quality assets and portfolio of Upstream and low-cost Upstream efficient operations and Downstream ensures assets in Downstream financial resilience Strong organic free cash Well positioned for Progressive dividend flo
Slide 5: Integrated and balanced portfolio pays off – resilient cash generation
OMV’s integrated and balanced portfolio pays off – resilient cash generation Cash generation and oil price development 1 EUR bn 3.9 3.3 3.2 3.0 Downstream 99 Upstream 52 54 Oil price 2 44 Corporate 3 2014 2015 2016 2017 3.3 7.2 4.7 6.0 OMV Indicator refining margin, USD/bbl 1 Sources of funds: cash
Slide 6: Upstream – High-quality portfolio
Upstream – High-quality portfolio Focused portfolio Production Low production cost 3m/18 split by region, kboe/d USD/boe Australasia MEA 10.6 8.8 7.4 CEE 4+1 core and development regions Russia 437 kboe/d Production split ► CEE ► North Sea + Australasia ► MENA North Sea 2016 2017 3m/18 ► Russia 6 |
Slide 7: Downstream Oil – European champion
Downstream Oil – European champion Top refiner Secure sales Strong retail Integrated oil outlets brands value chain ~ 50% of refinery 1st quartile European Excellent management production sold through in core markets and in refiner 1 and of the integrated retail and petrochemical premium fuels olefi
Slide 8: Downstream Gas – European integrated supplier
Downstream Gas – European integrated supplier Integrated Strong Europe gas Reliable portfolio European hub partnerships presence Positioned at the Long-term Integrated along the From North West to center of Europe’s reliable partnerships value chain from well to South East Europe transmission networ
Slide 9: Stringent cost discipline
Stringent cost discipline Cost savings program 1 CAPEX 3 2015 normalized baseline, EUR mn EUR bn (40)% 330 2.8 250 1.9 200 1.7 Delivered Target 2 Target 2 Delivered 100 Target 2016 2017 2015 2016 2017 1 Based on Operating Cost versus 2015 baseline according to OMV definition on a comparable basis 2
Slide 10: Improved profitability
Improved profitability Clean CCS Operating Result Clean CCS ROACE EUR bn % 3.0 14 1.7 8 1.5 7 2015 2016 2017 2015 2016 2017 10 | OMV Roadshow Presentation, May 2018
Slide 11: Substantially improved financial performance
Substantially improved financial performance Clean CCS net income attributable to stockholders EUR bn 1.6 Clean CCS EPS 1.1 1.0 54 Oil price 2017, EUR 2015 52 USD/bbl EUR 4.97 3.52 44 2015 2016 2017 7.2 4.7 6.0 OMV Indicator refining margin, USD/bbl 11 | OMV Roadshow Presentation, May 2018
Slide 12: Strong organic free cash flow
Strong organic free cash flow Organic free cash flow after dividends in 2017 Excluding acquisitions and disposals, EUR bn 3.4 1.2 +1.2 ► Reshaped and balanced portfolio of Upstream and Downstream assets drive 2.3 cash generation Cash flow from ► Strong organic free cash flow enables operating activi
Slide 13: OMV 2025 – Higher performance and more value ahead
OMV 2025 – Higher performance and more value ahead ► Leverage on proven concept of integration ► Significantly internationalize Upstream and Downstream ► Build strong gas market presence in Europe ► Extend record of operational excellence Drive operating result and cash generation 13 | OMV Roadshow
Slide 14: Higher-quality Upstream portfolio
Higher-quality Upstream portfolio Focused international player > 100% 4+1 600 Reserve core 500 Replacement regions Rate 1 348 8.8 <8 <8 2017 2020 2025 Production volumes, kboe/d Production cost, USD/boe 1 3 years average 14 | OMV Roadshow Presentation, May 2018
Slide 15: Downstream Oil – Further strengthen European position and grow internationally
Downstream Oil – Further strengthen European position and grow internationally st 1 quartile 1 ► Shift to higher value products ► Further increase captive sales volumes ► Export successful European business model internationally towards growing markets Fuels Olefins ► Increase petrochemical and Net
Slide 16: Downstream Gas – Build strong market presence in Europe
Downstream Gas – Build strong market presence in Europe ► Leading integrated supplier from North West to South East Europe ► Monetize increasing equity supply > 80% gas to be imported by 2030 ► Double sales revenues and increase overall margins ► Leverage Nord Stream 2 380 bcm imports required 1 1 I
Slide 17: Continue to grow value
Continue to grow value Clean CCS Operating Result EUR bn ≥5 ≥4 Capex Acquisitions 0,75 Downstream ► Positive free cash flow after Capex dividends 3 Acquisitions 0,75 ► Long term gearing ratio target of ≤ 30% ► Progressive dividend policy Upstream 2017 2020 2025 17 | OMV Roadshow Presentation, May 20
Slide 18: Maintain resilience
Maintain resilience Oil price free cash flow break-even 1 After dividends excluding acquisitions and disposals, USD/bbl Generating cash, delivering value 70 Capturing value- Efficient CAPEX accretive growth spending opportunities Sustainable Integrated business 35 generation of organic model and bal
Slide 19: Capital allocation priorities
Capital allocation priorities 1 CAPEX ROACE TARGET 2 Acquisitions ≥12% 3 Dividends Mid- and long-term 4 Debt reduction 19 | OMV Roadshow Presentation, May 2018
Slide 20: Focused investments
Focused investments CAPEX Acquisitions EUR bn EUR bn 2.0 - 2.5 10 2.1 Downstream 8 years 1.8 Upstream 3 years 2015-2017 2018-2025 2015-2017 2018-2025 Ø p.a. Ø p.a. Efficient capital allocation Value adding acquisitions Strict cost management Keep optionality and flexibility Invest along th
Slide 21: Strong track record in portfolio management
Strong track record in portfolio management 2018 Expanded Signed basic Acquired share Expanded OMV footprint in agreement on in one of footprint in awarded Libya asset swap largest gas New Zealand 20% share in with Gazprom fields: Yuzhno two oil fields Russkoye in Abu Dhabi Dec 15, 2016 Jan 13, 2017
Slide 22: Acquisition of a 20% stake in two offshore fields in Abu Dhabi from ADNOC
Acquisition of a 20% stake in two offshore fields in Abu Dhabi from ADNOC ► OMV signed a concession agreement for the acquisition of a 20% stake in two offshore oil fields from ADNOC: ► Satah Al Razboot (SARB) including the satellite fields Bin Nasher and Al Bateel ► Umm Lulu ► Commencement of conce
Slide 23: Abu Dhabi – high-quality assets with substantial cash generation
Abu Dhabi – high-quality assets with substantial cash generation Adding 450 mn bbl to ► Substantially strengthening OMV‘s reserves base OMV’s reserve base ► Upside potential from satellite fields ≥ 40 kbbl/d long-term ► Plateau production to be reached early in the next decade plateau production ► L
Slide 24: Acquisition in New Zealand – Major step towards building Australasia into a new core region
Acquisition in New Zealand – Major step towards building Australasia into a new core region ► Acquisition of Shell’s Upstream business in Adding up to 100 mn boe New Zealand: of recoverable resources ► Increased stake in Pohokura by 48% and in Maui by 83.75% (31 kboe/d in Jan-Feb 2018) Immediate pro
Slide 25: Attractive shareholder return
Attractive shareholder return Annualized Total shareholder return Last five 2017 Last three years years OMV 61% 39% 18% Peers 1 20% 27% 13% ATX 2 34% 19% 10% FTSEUR1ST 300 OIL & GAS 2 6% 10% 6% FTSE EUROTOP 100 2 9% 6% 9% 1 BP, ENI, Galp, Lundin Petroleum, MOL, Neste Oil, PKN Orlen, Repsol, Shell, S
Slide 26: Progressive dividend policy
Progressive dividend policy Dividend per share EUR 50% ++50% 1.5 Record dividend of EUR 1.50 per share for 2017 proposed 1.2 We are committed to delivering an attractive and 1.0 predictable shareholder return through the business cycle Progressive dividend policy: OMV aims to increase the divi
Slide 27: Financial priorities and long-term targets
Financial priorities and long-term targets Positive free cash flow after dividends Competitive shareholder returns Growing Gearing ratio Clean CCS net income attributable to stockholders ≤30% Strong investment grade credit rating ROACE 27 | OMV Roadshow Presentation, May 2018 ≥12%
Slide 28: Q1 2018 Results
Q1 2018 Results Umm Lulu offshore field in Abu Dhabi
Slide 29: Macro environment – Higher oil prices, lower refining margins
Macro environment – Higher oil prices, lower refining margins Oil price Brent USD/bbl OMV indicator refining margin USD/bbl 67 70 61 8 7.0 60 5.7 50 6 54 6.0 4.8 50 52 40 5.4 4 30 20 2 10 0 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Gas prices Ethylene/propylene net margin 2 EUR/M
Slide 30: Key messages
Key messages OPERATIONAL PORTFOLIO PERFORMANCE COST DISCIPLINE MANAGEMENT Clean CCS Operating Result Production cost further Established a material position at EUR 818 mn reduced to USD 7.4/boe in Abu Dhabi Strong free cash flow New efficiency program: Expanded position generation of EUR 538 mn savi
Slide 31: Solid Group clean CCS Operating Result despite FX headwinds
Solid Group clean CCS Operating Result despite FX headwinds Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR Upstream Downstream Corporate & Others EUR mn 805 818 502 1.54 688 321 367 377 1.12 1.15 438 344 494 356 376 Q1/17 Q4/17 Q1
Slide 32: Upstream – Significantly higher result supported by oil prices and sales volumes
Upstream – Significantly higher result supported by oil prices and sales volumes Clean Operating Result Q1 2017 vs. Q1 2018 EUR mn Higher realized oil prices offset by weaker USD +117 +117 Realized oil price increased by 15% 438 Realized gas price decreased by 16% 9 Realized hedging loss in
Slide 33: Downstream – High Downstream Gas result offset by lower refining margins
Downstream – High Downstream Gas result offset by lower refining margins Clean CCS Operating Result Q1 2017 vs. Q1 2018 EUR mn Oil -117 Lower refining margin (-12%) and negative FX impact (118) 494 Higher ethylene/propylene net margins (+16%); lower 50 butadiene margins 12 53 Strong refinery u
Slide 34: Strong free cash flow of EUR 0.5 bn
Strong free cash flow of EUR 0.5 bn Sources and uses 1 of cash in Q1/18 EUR mn Strong cash flow from operating activities of 1,076 EUR 1,076 mn (Q1/17: EUR 923 mn) Borealis dividend of EUR 252 mn Free cash Cash flow from investing activities of EUR 538 mn +538 flow (Q1/17: EUR 397 mn), includi
Slide 35: Continued low gearing and strong cash position
Continued low gearing and strong cash position Net debt development EUR bn Strong cash position of EUR 4.3 bn 4.0 Redemption of the 2011 hybrid bond of EUR 0.75 bn; repaid on April 26, 2018 3.0 2.3 Net debt increased to EUR 2.3 bn due to 2.0 reclassification of 2011 hybrid bond as of Q1 2018 a
Slide 36: Outlook 2018
Outlook 2018 2017 Outlook 2018 Brent oil price (USD/bbl) 54 68 (Previous 60) CEGH gas price (EUR/MWh) 18 18 Total hydrocarbon production (kboe/d) 348 >420 (Previous 420) OMV indicator refining margin (USD/bbl) 6 <6 Ethylene/propylene net margin (EUR/t) 427 425 Utilization rate refineries (%) 90 >90
Slide 37: Sensitivities of OMV Group in 2018
Sensitivities of OMV Group in 2018 Annual impact Clean CCS Operating Operating cash flow in EUR mn Result 1 Brent oil price (USD +1/bbl) +45 +30 OMV realized gas price (EUR +1/MWh) +125 +95 CEGH/NCG gas price 2 (EUR +1/MWh) +40 +35 OMV indicator refining margin (USD +1/bbl) +105 +80 Ethylene/propyle
Slide 38: OMV Aktiengesellschaft
OMV OMV Aktiengesellschaft Downstream
OMV Aktiengesellschaft — Non-Deal Roadshow (March 2018) on 6ix