OMV : Presentation slides

Q4 and full year 2019 Results Conference Call

Rainer Seele

Chairman of the Executive Board and CEO

February 6, 2020

OMV Aktiengesellschaft

Disclaimer

This report contains forward-looking statements. Forward-looking statements may be identified by the use of terms such as "outlook," "expect," "anticipate," "target," "estimate," "goal," "plan," "intend," "may," "objective," "will", and similar terms or by their context. These forward-looking statements are based on beliefs and assumptions currently held by and information currently available to OMV. By their nature, forward-looking statements are subject to risks and uncertainties, both known and unknown, because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of OMV. Consequently, the actual results may differ materially from those expressed or implied by the forward-looking statements. Therefore, recipients of this report are cautioned not to place undue reliance on these forward-looking statements.

Neither OMV nor any other person assumes responsibility for the accuracy and completeness of any of the forward-looking statements contained in this report. OMV disclaims any obligation to update these forward-looking statements to reflect actual results, revised assumptions and expectations, and future developments and events. This report does not contain any recommendation or invitation to buy or sell securities in OMV.

2 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Macro environment - Weaker market environment than in Q4/18 in Upstream and Downstream

Oil prices

USD/bbl
70	69	63	69	62	63
60	62	60	66	59	61
50
40
30				Average Brent price
20
			Average realized crude price
10
0
Q4/18	Q1/19	Q2/19	Q3/19	Q4/19

Gas prices

EUR/MWh

30		25.0				Realized gas price (Upstream) 1
				Central European Gas Hub
25		19.5
20
			15.5			13.0
15
				11.2
		13.7	13.6
10		12.1	10.7	11.3
5
0
Q4/18	Q1/19	Q2/19		Q3/19	Q4/19

OMV indicator refining margin

USD/bbl

6			5.2			5.5
5				4.0
4
				3.2
3
2
1
0
Q4/18	Q1/19	Q2/19	Q3/19

Ethylene/propylene net margin 2

EUR/t

600			504	452	475
500			441
400
300
200
100
0
Q4/18	Q1/19	Q2/19	Q3/19

5.0

Q4/19

363

Q4/19

	Note: All figures are quarterly averages
3 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020	1Converted to MWh using a standardized calorific value across the portfolio
2	Spread between market prices of ethylene/propylene and naphtha including standard processing consumption

Key messages

FINANCIAL

PERFORMANCE

Clean CCS Operating Result of

EUR 781 mn(-26%y-o-y)impacted by weaker market environment in Upstream and Downstream

Quarterly cash flow from operating

activities 1of EUR 963 mn

Dividend Per Share of EUR 2.00

(+ 14% vs. 2018)

1Excluding net working capital effects

STRONG		DELIVERING THE
OPERATIONS		STRATEGY
Quarterly production of	Agreed to sell share in mature oil
505 kboe/d		field inNew Zealand
Production cost
atUSD 6.4/boe
Refineryutilization rate of
98%

4|OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Clean CCS Operating Result impacted by weaker market environment and higher depreciation

Clean CCS Operating Result

EUR mn

Upstream		Corporate & Other, Consolidation
Downstream

1,053

949

Clean CCS Net Income attributable to stockholders

EUR mn

Clean CCS Earnings Per Share

EUR

1.50

1.40

578

781

449

459

490

457

310

0.95

445490

385

Q4/18

Q3/19

Q4/19

Q4/18Q3/19Q4/19

Q4/18Q3/19Q4/19

5 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Upstream - Higher gas sales volumes offset by weaker market environment, fewer oil liftings in Norway, and higher depreciation

Clean Operating Result				Q4/19 vs. Q4/18
			Weaker market environment
EUR mn
		(119)-2%			Realized oil price decreased by 2%
					Realized gas price decreased by 18%
578
				Positive FX impact due to stronger USD/EUR
	91	48	75		Production of 505 kboe/d (up by +58 kboe/d):
		459
				New Zealand (+31 kboe/d) due to acquisition of Shell's assets
					Malaysia (+15 kboe/d) following SapuraOMV acquisition
					Norway (+10 kboe/d) mainly due to Aasta Hansteen
					UAE (+5 kboe/d) following Umm Lulu/Sarb ramp-up
					Libya (+5 kboe/d)
					Romania (-6 kboe/d) mainly due to natural decline
					+50 kboe/d higher sales volumes; increase mostly in gas, fewer oil
					liftings in Norway
Q4/18	Market effects 1	Operational	DD&A 2	Q4/19	Production costs almost flat at USD 6.4/boe (+2%)
		performance
1Market effects defined as oil and gas prices, foreign exchange impact, price effect on royalties, and	Higher depreciation due to acquisitions and higher production in
hedging, selling, and distribution costs in Russia			Norway and Libya
2Depreciation, Depletion, and Amortization

6 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Downstream - Weaker market environment in petrochemicals partially offset by stronger Gas and ADNOC contribution

Clean CCS Operating Result

EUR mn

			(59)
			-13%
	445
Gas	64	79	36	17	385
					82
	381
Oil					303
	Q4/18	Market effects	Operational	Borealis	Q4/19
			performance	contribution

1Market effects defined as refining indicator margin and petrochemical margins

Q4/19 vs. Q4/18

Oil

• Weaker market environment
• • Refining indicator margin at USD 5/bbl(-4%)
  • Ethylene/propylene net margins at EUR 363/t(-28%)
• Operational performance
• • Refinery utilization rate at 98%
  • Normalized regional supply situation; lower retail margins and commercial volumes
  • Decreased contribution from petrochemicals(-56%); lower margins partially offset by reduced feedstock costs
  • Positive ADNOC contribution
• Lower contribution from Borealis(-27%) mainly due to a decreased contribution from Borouge, partially offset by positive inventory effects

Gas

• Higher natural gas sales
• Positive storage effects due to realization of summer/winter spreads

7 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Baumgarten incident insurance reimbursement in Q4/18

2019 cash flow from operating activities excluding net working capital effects at EUR 4.3 bn

Organic cash flow 12m/19

EUR bn

4.2	4.3	Cash flows 12m/19 vs. 12m/18
		Increase of sources of funds by EUR 41 mn
		Borealis dividends in Q4/19 of EUR 153 mn (FY/19: EUR 297
		mn, FY/18: EUR 360 mn)
2.5		Net working capital effects of EUR (208) mn (12m/18: EUR 173 mn)
	2.1	Organic cash flow from investing activities1at EUR (1.9) bn (12m/18:
		EUR (1.9) bn)
		Organic free cash flow before dividends of EUR 2.1 bn
		(12m/18: EUR 2.5 bn)
		Payment of dividends of EUR 858 mn (12m/18: EUR 779 mn)
		Inorganic cash flow from investing activities of EUR (2.7) bn
12m/18	12m/19

Cash flow from operations excl. net working capital change

Organic free cash flow before dividends 2

1. Organic cash flow from investing activities is Cash flow from investing activities excluding divestments and material inorganic cash flow components (e.g. acquisitions).
2. Organic free cash flow before dividends is Cash flow from operating activities less Organic cash flow from investing activities.

8 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Strong full year results despite weaker market environment

Clean CCS Operating Result	Cash flow from operating activities 1
EUR bn	EUR bn

Upstream		Downstream		Corporate & Others	≥4.0
~3.0
	4.3
3.9	4.2

			3.6	3.5
		3.0			3.2	3.0
		1.2	2.0	2.0
1.7	1.5
0.1
0.0
1.5	1.5	1.8	1.6	1.7
				-0.1
2015	2016	2017	2018	2019	2015	2016	2017	2018	2019 2

9 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020	1Excluding changes in net working capital
2As of Q1/19 it includes also net changes in short-term provisions. 2018 figures were adjusted.

Healthy balance sheet

Net debt and gearing ratio

28%		Gearing ratio	29%	28%

													Cash position
													EUR bn 1
		21%
												2.9
				14%
				13%		4.9	4.7		Undrawn revolving
4.0									Net debt
								(EUR bn)		credit facilities
		3.0										EUR bn 1
				2.0	2.0					3.2
													1As of end of 2019
2015	2016	2017	2018	Sep. 30, 19 Dec. 31, 19

10 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Delivering on our progressive dividend policy -

Record dividends in 2019

Dividend Per Share

EUR

		CAGR		2.00Record dividend of EUR 2.00 per share for 2019
		+19%	1.75		proposed(+14% vs. 2018)
		1.5		We are committed to delivering an attractive and
	1.20				predictable shareholder return through the
1.00					business cycle
				Progressive dividend policy: OMV aims to increase
					the dividend or at least maintain it at the previous
					year's level
2015	2016	2017	2018	2019
3.8%	3.6%	2.8%	4.6 %	4.0%
		Dividend yield

11 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Outlook 2020

	2019	Outlook 2020
Brent oil price (USD/bbl)	64	60
Average realized gas price (EUR/MWh)	11.9	<11.9
Total hydrocarbon production (kboe/d)	487	~500 1
OMV European indicator refining margin (USD/bbl)	4.4	>5.0
Ethylene/propylene net margin (EUR/t)	433	<400
Utilization rate European refineries (%)	97%	~95%
Organic CAPEX (EUR bn)	2.3	2.4
E&A expenditures (EUR mn)	360	350

1Depending on the security situation in Libya

12 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Move towards a lower-carbon future

More gas,	More valuable	Innovative
less oil	products, burn less	technology

13 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

BACKUP

OMV Aktiengesellschaft

Upstream - Stronger market environment offset by lower oil sales volumes and higher E&A expenses

Clean Operating Result	Q4/19 vs. Q3/19
EUR mn	Stronger market environment

		+9			Realized oil price increased by 3%
					Realized gas price increased by 5%
449	59	63	13	459	Production of 505 kboe/d (+25 kboe/d)
				Russia (+17 kboe/d) due to annual maintenance in Q3/19 and
					seasonality
					Norway (+7 kboe/d)
					Libya (+2 kboe/d)
					+12 kboe/d (1.1 mn boe) higher sales mainly due to higher
					production in Russia, partially offset by fewer oil liftings in Norway
					Exploration well in New Zealand (Gladstone 1) write-off
					Production costs almost flat USD 6.4/boe (+1%)
					Stable depreciation level
Q3/19	Market effects 1	Operational	DD&A 2	Q4/19
		performance

1. Market effects defined as oil and gas prices, foreign exchange impact, price effect on royalties and hedging, selling and distribution costs in Russia
2. Depreciation, Depletion and Amortization

15 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Downstream - Lower earnings impacted by weaker refining and petrochemical margins, partially offset by gas result

Clean CCS Operating Result

EUR mn

Q4/19 vs. Q3/19

			(105)			Oil
490						Weaker market environment
25
57					Lower refining margin (-8%)
			23	25	385	Lower ethylene/propylene net margins (-18%)
Gas
					82	Operational performance
					Exceptionally high utilization rate (98%)
						Lower total refined product sales (-8%) due to seasonality
465						and normalized supply regional constraints
					Positive ADNOC contribution
					303	Lower Borealis contribution driven by lower integrated polyolefin
					margins and seasonality effect
Oil						Gas
						Significantly higher natural gas sales, mainly driven by Germany
Q3/19	Market effects	1	Operational	Borealis	Q4/19	Higher storage business result
			performance	contribution

1Market effects defined as refining indicator margin and petrochemical margins

16 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Operational KPIs

Hydrocarbon production			Refined product sales
kboe/d					mn t
447	480		505	5.25	5.60	5.17

Q4/18 Q3/19 Q4/19Q4/18 Q3/19 Q4/19

Hydrocarbon sales				Refinery utilization rate
mn boe			%
39.4	42.8	43.9	98	96		98

Q4/18

Q3/19

Q4/19

Q4/18

Q3/19

Q4/19

Retail sales

mn t

	1.81
1.58	1.64

Q4/18 Q3/19 Q4/19

Natural gas sales

TWh

44.7

32.7

27.2

Q4/18 Q3/19 Q4/19

17 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Strong balance sheet

Balance sheet Dec. 31, 2019 vs. Sep. 30, 2019

EUR bn

40.3

40.4

40.4

40.3

									Stockholders' equity	13.0		12.9
Tangible &	20.9		20.6
intangible assets
								Non-controlling interests	3.9			3.8
									Trade payables	4.2			3.9
Other	8.8		8.3			Bonds and other	7.6			8.1
		interest-bearing debts
non-current assets
Inventories				1.8
Trade receivables	1.9				Provisions
					5.9			6.2
3.1		3.0
Cash				Liabilities associated
									0.2
			2.9								0.0
Assets held for sale	3.2			with assets held for sale
		0.2			Other liabilities	5.6			5.5
Other current assets		0.0
2.5		3.4
		Sep 30, 2019	Dec 31, 2019				Dec 31, 2019	Sep 30, 2019

• Assets and liabilities held for sale impacted by the reclassification of the 69% stake in Maari field in New Zealand as well as 40 marginal oil and gas fields in Romania
• EUR 500 mn bond repaid in Q4/19

18 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

Sensitivities of OMV Group in 2020

Annual impact 1	Clean CCS Operating	Operating cash flow
in EUR mn	Result
Brent oil price (USD +1/bbl)	+60	+25
OMV invoiced gas price (EUR +1/MWh)	+140	+90
OMV indicator refining margin (USD +1/bbl) 2	+110	+85
Ethylene/propylene net margin (EUR +10/t)	+15	+10
EUR-USD (USD changes by USD 0.01)	+25	+15
1Excluding hedging
2Excluding at-equity accounted investments; does not include inventory impact
Materially different Brent and FX levels (vs. current levels) would lead to different sensitivity results.

19 |OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

OMV Aktiengesellschaft