Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Non-Deal Roadshow (March 2017)
29 slides from Omv's roadshow presentation, Mar 20, 2017
Slide 1: Roadshow presentation
Roadshow presentation Reinhard Florey, Chief Financial Officer Paris March 20, 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: 311 kboe/d (~50% oil, ~50% gas) ► 1P reserves at year-end: 1.03 bn boe (reserves life of ~9 years) ► ~90% of production in EU and OECD countries Downstream O
Slide 4: OMV delivered on strategy
OMV delivered on strategy € € PORTFOLIO COST SAVINGS STRONG DIVIDEND RESHAPING CASH FLOW Signed acquisition of 24.99% Cost savings of Strong operating cash Dividend Per in Yuzhno Russkoye gas field EUR 200 mn flow despite weaker Share of EUR 1.20 achieved - ahead of market conditions Signed asset sw
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 Gazprom asset swap activities in non-core region binding agreement of Sub-Sa
Slide 6: Acquisition of 24.99% stake in Yuzhno Russkoye gas field
Acquisition of 24.99% stake in Yuzhno Russkoye gas field ► OMV acquires 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 7: Asset swap between Gazprom and OMV progressing well
Asset swap between Gazprom and OMV 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 pi
Slide 8: Russia becomes one of OMV's core Upstream regions
Russia becomes one of OMV’s core Upstream regions OMV production contribution from Russia over the next 10 years 1 in kboe/d ► Stable and increasing production flow for a very long period of time 150 ► Production of ~150 kboe/d will be reached in 2025 100 ► Combined volumes from Achimov IV/V and Yuz
Slide 9: 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 10: Optimized Downstream portfolio
Optimized Downstream portfolio Gas sales business Gas transportation business Acquired, restructured and Reduced exposure in regulated integrated gas sales and trading Gas business by selling 49% businesses (renamed OMV Gas share in Gas Connect Austria Marketing & Trading) Alternative options
Slide 11: 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 12: Financial highlights
Financial highlights Financial stability improved 2016 2015 Free cash flow after dividends incl. non-controlling 1,105 (581) interest changes 1 (EUR mn) Net debt (EUR bn) 3.0 4.0 Gearing (%) 21 28 Net special items (EUR bn) (1.6) (3.0) Financial firepower for strategic transactions improved: EUR
Slide 13: Solid performance in 2016
Solid performance in 2016 Clean CCS EBIT Clean CCS Net Income Clean CCS Earnings Per in EUR mn attributable to stockholders Share in EUR mn in EUR 1,390 1,148 995 3.52 1,110 3.05 2015 2016 2015 2016 2015 2016 Cash flow from operating activities Free cash flow after dividends incl. Dividend Per Share
Slide 14: Strict cost discipline
Strict cost discipline Upstream Capex E&A expenditure production costs in EUR bn in EUR mn Opex in USD/boe (12)% (29)% (51)% 13.2 2.8 607 11.6 1.9 2.0 307 300 2015 2016 2015 2016 2017-2018 2015 2016 2017-2018 1 Like-to-like comparison 14 | OMV Group, Roadshow March 20, 2017
Slide 15: Increased cost savings target for 2017
Increased cost savings target for 2017 Operating cost 1 reduction in EUR mn 300 Delivery of EUR 200 mn New target Procurement savings already in 2016 250 250 +50 Cross-divisional (Upstream – EUR mn Downstream) benchmark on operating 200 costs and best practice sharing (e.g. 200 maintenance) Deli
Slide 16: 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 17: 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 18: 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 18 | OMV Group, R
Slide 19: Outlook 2017
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 2.0 E&A expenditures (EUR mn) 307 300 Cost savi
Slide 20: 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 21: BACK-UP
BACK-UP OMV Aktiengesellschaft
Slide 22: 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 23: 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 and Achimov I A fields have consistently produce
Slide 24: Development of economic environment
Development of economic environment Oil price Brent OMV indicator refining margin in USD/bbl OMV in USD/bbl oil price 80 forecast 2017 2018 2019 2020 2021 8 Price 55 65 70 75 75 6 60 5.9 5.6 40 4 5.1 4.7 46 46 49 44 3.7 20 34 2 0 0 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Gas pric
Slide 25: Cash flow development
Cash flow development EUR mn 2016 2015 Net income (183) (1,255) Depreciation, amortization, impairments including write-ups 3,784 5,153 Change in net working capital components (148) (400) Other (575) (664) Cash flow from operating activities 2,878 2,834 Cash flow used for investments (2,141) (3,066
Slide 26: Income statement summary
Income statement summary EUR mn 2016 2015 Clean CCS EBIT 1,110 1,390 CCS effect 6 (368) Special items (1,574) (3,028) EBIT (457) (2,006) Financial result 227 97 Borealis 399 356 Taxes 47 654 Net income (183) (1,255) attributable to non-controlling interests 118 (197) attributable to hybrid capital o
Slide 27: Strong balance sheet
Strong balance sheet Balance Sheet 2016 vs. 2015 Highlights 2016 in EUR bn 32.7 32.1 32.1 32.7 EUR 3.4 bn reduction in tangible and intangible assets mainly due to reclassification as assets held for sale and to impairments Stockholders’ equity 10.9 11.7 booked during the period Tangible & intangi
Slide 28: Sensitivities on OMV Group in 2017
Sensitivities on OMV Group in 2017 2017 impact EBIT Operating cash flow in EUR mn Brent oil price +35 +30 (USD +1/bbl) Gas price (EUR +1/MWh) +20 +15 OMV indicator refining margin +110 +85 (USD +1/bbl) Petrochemicals margin (EUR +10/to) +15 +10 EUR-USD +160 +125 (USD appreciates by 10 US cents) Note
Slide 29: OMV Aktiengesellschaft
OV OMV OMV Aktiengesellschaft oOuv Moving more. Moving the future. O M Vv
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