OMV : Präsentationsfolien

Q4 2020 Results Conference Call

Rainer Seele

Chairman of the

Executive Board and CEO

February 4, 2021

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 2020 Conference Call, February 4, 2021

Macro environment - improved crude oil and gas prices, but still below prior-year level

Oil prices

USD/bbl

70		63
60		61	50			44
50			43
40				47	30	37	42
30
				Average Brent price
20					26
				Average realized crude price
10
0
Q4/19		Q1/20	Q2/20	Q3/20	Q4/20

Gas prices

EUR/MWh

14		13.0				Realized gas price (Upstream) 1	13.8
	11.0			Central European Gas Hub
12						8.8
10		11.3	10.6	8.2	9.3
8
6				6.7	7.3
4
2
0
Q4/19	Q1/20	Q2/20	Q3/20	Q4/20

OMV indicator refining margin Europe

USD/bbl

6			5.0	4.9
5
4
3					2.3
2						0.9
1
0
Q4/19	Q1/20	Q2/20	Q3/20

Ethylene/propylene net margin 2

EUR/t

500			363	459	393	375
400
300
200
100
0
Q4/19	Q1/20	Q2/20	Q3/20

1.7

Q4/20

369

Q4/20

	Note: All figures are quarterly averages.
3 | OMV Group, Q4 2020 Conference Call, February 4, 2021	1 Converted 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 524 mn

(33)% y-o-y

+65% q-o-q

Borealis fully consolidated starting

end of October 2020

Quarterly cash flow from operating

activities1 of EUR 0.8 bn

2020 Dividend Per Share

of EUR 1.85 2

STRONG	DELIVERING THE
OPERATIONS	STRATEGY
Quarterly production of	Closed acquisition of additional
472 kboe/d	39% share in Borealis
Production cost	Signed divestment of OMV retail
at USD 6.2/boe	network in Germany to EG Group
Refinery utilization rate in	Signed divestment of Upstream
Europe of 81%	business in Kazakhstan
Strong polyolefin sales	FID for biofuel production (co-
	processing) in Austria
	Committed to H2Accelerate

1 Excluding net working capital effects

2 as proposed by the Executive Board; subject to confirmation by the Supervisory Board and the AGM 2021

4 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Clean CCS Operating Result substantially impacted by lower oil prices and reduced demand

Clean CCS Operating Result	Clean CCS net income attributable	Clean CCS Earnings Per Share
EUR mn			to stockholders	EUR
	Upstream		Corporate & Other	EUR mn
	Downstream

781
							0.95
459			524						0.67
			184	310
	317				219
385	335		369		80			0.24
(63)	(24)	6	(29)
Q4/19	Q3/20	Q4/20	Q4/19	Q3/20	Q4/20	Q4/19	Q3/20	Q4/20

5 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Upstream - weaker realized oil and gas prices and lower production

Clean Operating Result

Q4/20 vs. Q4/19

EUR mn

 Significantly weaker market environment

		(275)-60%			 Average realized oil price decreased by 32%
					Average realized gas price declined by 18%
459
				 Negative FX impact
					 Production of 472 kboe/d (-33 kboe/d)
					 Libya (-16 kboe/d)
					 Romania (-11 kboe/d)
	354				 New Zealand (-10 kboe/d)
				184	 Russia (-9 kboe/d)
			83		 Norway (-5 kboe/d)
				 Malaysia (+21 kboe/d) due to start-up of SK408 gas field
		4
					 Sales volumes decreased by 23 kboe/d due to lower production
Q4/19	Market effects 1		DD&A 2	Q4/20	 Production costs decreased to USD 6.2/boe (-3%)
Operational	 Lower depreciation due to lower production volumes as well as the
		performance
1 Market effects defined as oil and gas prices, foreign exchange impact, price effect on royalties, and	effect from impairments and reserves revision
hedging, selling, and distribution costs in Russia

2 Depreciation, Depletion, and Amortization

6 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Downstream - weaker market environment almost offset by Borealis full consolidation and positive hedging impact

Clean CCS Operating Result

Q4/20 vs. Q4/19

EUR mn

			(16)			 Weaker market environment
					 Refining indicator margin Europe at USD 1.7/bbl (-66%)
	385					 Ethylene/propylene net margin at EUR 369/t (+2%)
				369	 Operational performance
	50
Borealis	82				 Positive contribution from margin hedging
Petchem	35			112	162	 Lower refinery utilization rate and refined product sales
			46		 Strong retail performance
Gas	84
				 Decreased commercial fuels performance mainly caused by
						significant drop in jet fuel demand
					43	 Lower gas storage result, partly compensated by significantly
Fuels &						higher power result in Romania
Others 1					79	 Lower ADNOC Refining & Trading JV contribution due to
	216
					significantly lower refining margin
					85	 Go live of ADNOC Global Trading in December
					 Borealis (fully consolidated starting October 29, 2020)
	Q4/19	Market effects 2	Operational	Borealis	Q4/20	 Higher polyolefin sales volumes with stronger margins and
			performance			positive inventory effects; lower fertilizer business

1. Including at-equity contribution from ADNOC Refining & Trading JV
2. Market effects defined as refining indicator margin and petrochemical margins; do not yet include result impact from Borealis crackers

• Improved Borouge performance

7 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Stringent cost discipline

OPEX savings

In EUR mn

~ 650

>430

>330

>200

>460

 Operational efficiency in both

Upstream and Downstream

 Process optimization and

harmonization

 Capture economies of scale and

strictly manage overhead costs

 Leverage digitalization and

optimize IT processes

 Procurement savings and

2016

2017

2018

2019

2020

Efficiency program 2015-20171

Efficiency program 2018-20202

Response to challenging environment in 2020 3 1 versus 2015 on a comparable basis

2 versus 2017 on a comparable basis

3 versus 2019 on a comparable basis

contractor renegotiations

8 | OMV Group, Q4 2020 Conference Call, February 4, 2021

OMV Group - good organic free cash flow of EUR 1.3 bn in 2020

Cash flow 12m/20 vs. 12m/19

EUR bn

4.3

	 Decrease of EUR 1.5 bn in cash flow from operating activities excluding net
	working capital effects
	 Borealis dividend of EUR 108 mn (12/19: EUR 297 mn)
	 Net working capital effects of EUR 351 mn (12m/19: EUR (208) mn)
2.8	 Cash flow from operating activities of EUR 3.1 bn (12m/19: EUR 4.1 bn)
2.1	 Organic cash flow from investing activities 1 at EUR (1.9) bn
(12m/19: EUR (1.9) bn)
	 Organic free cash flow before dividends of EUR 1.3 bn
1.3	(12m/19: EUR 2.1 bn)

 Payment of dividends of EUR 879 mn (12m/19: EUR 858 mn)  Inorganic cash flow from investing activities of EUR (4.1) bn

 Thereof acquisition of 39% share in Borealis EUR (3.9) bn

2019

2020

Cash flow from operating activities excl. net working capital effects

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.

9 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Borealis - strong and stable cash flow generation in 2020

Borealis

Operating cash flow 2020

(including dividends from at-equity participations)

EUR bn

1.51.6

1.1

Ø 2015-2018

2019

2020

Note: Borealis stand-alone view

10 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Uses of cash in 2020

• Running CAPEX of around EUR 0.5 bn p.a.
• Dividends
• M&A
• • Acquisition of NOVA Chemicals' 50% ownership interest in Novealis (Baystar JV 50% Total, 50% Novealis)
  • Acquisition of a controlling stake in South Korean compounder DYM Solution Co.
• Growth projects
• • PDH Kallo plant in Belgium
  • Baystar JV steam cracker and Borstar® PE plant in Texas, USA

Temporary increase in net debt following Borealis acquisition

Gearing ratio excluding leases

Gearing ratio excluding leases considering divestments signed

Net debt excluding leases in EUR bn

3.6	3.4
3.2
22%	21%
19%
1.8
	11%

8.1

Signed

>1.0 divestments

41%

~35%

End of Dec. 2020

OMV cash position

EUR 2.9 bn

End of Dec. 2020 OMV undrawn committed credit facilities

EUR 4.2 bn

	2019	Q1/20	Q2/20	Q3/20	Q4/20
Leverage	22%	20%	21%	15%	32%
ratio

Note: Gearing ratio excluding leases is defined as net debt excluding leases-to-equity

|Leverage ratio defined as net debt including leases-to-capital employed

11 OMV Group, Q4 2020 Conference Call, February 4, 2021

Clear commitment to our progressive dividend policy

Dividend Per Share

EUR

CAGR
+13%	1.85
1.75
1.75

1.50

1.20

1.00

2015

2016

2017

2018

2019

2020

• Record dividend of EUR 1.85 per 2020 proposed (+6% vs. 2019)
• We are committed to deliver an attractive shareholder return
• Progressive dividend policy: OMV aims to increase the dividend or at least maintain it at the respective previous year's level

12 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Disciplined capital spending supports high free cash flows from combined businesses

Organic CAPEX

EUR bn

Borealis Organic CAPEX before full consolidation

OMV Organic CAPEX from Borealis after full consolidation

OMV Group Organic CAPEX 1

2.5 - 3.0

2.8	2.7
0.5	2.4
		0.5
	0.2

2.3

1.7

2019

2020

2021

2022+

1 2020 excluding Borealis EUR 0.2 bn after full consolidation 13 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Main projects in 2021

• EUR 2.7 bn
• • thereof ~EUR 200 mn leases
• Upstream
• • Malaysia, UAE, New Zealand, Norway
• Downstream
• • Energy transition projects (e.g. Re-Oil®, co- processing)
  • Expansion of steam cracker in Burghausen
• Borealis
• • PDH Kallo plant in Belgium

Borealis synergies of at least EUR 800 mn by year-end 2025

≥800

EUR mn by year-end 2025

~200 ~200 ~200

~150

50-80

2021

2022

2023

2024

2025

Operational cost savings

Combined purchasing

Debottlenecking

Value chain optimization

Tax benefits

14 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Update on the EUR 2 bn divestment program

Signed divestments

Ongoing divestments

51% share in Gas Connect Austria

• Closing expected in H1/21
• Net debt reduction of EUR 570 mn

OMV retail network in Germany

• Closing expected in 2021
• Net debt reduction of ~ EUR 500 mn

Kazakhstan Upstream operations

EUR 2 bn

• Closing expected in H1/21

New Zealand - Maari field

• Closing expected in H1/21
• EUR 1 bn

Divestment of the NITRO business1

• Fertilizer, technical nitrogen and the melamine products
• Leading European player
• Non-coreasset

Divestment of operations in Slovenia

• 120 retail sites and commercial business
• Limited integration with refinery

Other assets already announced

• Four oil fields in Malaysia

Additional assets to be announced in 2021

15 | OMV Group, Q4 2020 Conference Call, February 4, 2021

1 Ammonia, Nitric Acid, Fertilizers (excluding Rosier), and Melamine

Outlook 2021

		2020	Outlook 2021
	Brent oil price (USD/bbl)	42	50-55
	Average realized gas price (EUR/MWh)	8.9	> 10
	Total hydrocarbon production (kboe/d)	463	~ 480
	OMV indicator refining margin in Europe (USD/bbl)	2.4	> 2.4
	European ethylene indicator margin (EUR/t)	435	435
	European propylene indicator margin (EUR/t)	364	364
	European polyethylene indicator margin (EUR/t) 1	350	> 350
	European polypropylene indicator margin (EUR/t) 2	413	> 413
	Utilization rate European refineries (%)	86	86
	Organic CAPEX (EUR bn)	1.9 1	2.7

	1	HD BM FD EU Domestic EOM (ICIS low) - Ethylene CP WE (ICIS)
16 | OMV Group, Q4 2020 Conference Call, February 4, 2021	2	PP Homo FD EU Domestic EOM (ICIS low) - Propylene CP WE (ICIS)
	3 Including Borealis CAPEX, consolidated since Oct 29, 2020

Updated strategic priorities 2025

STRATEGIC PRIORITIES

• Transition into an integrated chemical company
• Continue to leverage the proven concept

of integration along the value chain

• Maximize value of existing traditional oil and gas portfolio
• Expand portfolio of low- and zero-carbonproducts

17 | OMV Group, Q4 2020 Conference Call, February 4, 2021

FINANCIAL FRAMEWORK

• Clean CCS operating result of EUR ≥5 bn by 2025
• Cash flow from operating activities 1 of EUR ≥ 5 bn by 2025
• ROACE target ≥ 12%
• Positive free cash flow after dividends
• Gearing ratio target of ≤ 30%
• Progressive dividend policy
• Strengthen balance sheet and deliver attractive shareholder returns

1 Excluding net working capital effects

Updated strategic priorities 2025

EXPLORATION & PRODUCTION

• Run portfolio for value, harvesting the cash flow
• Maintain production corridor of ~ 450-500 kboe/d, with overweight on gas
• Manage production cost below USD 7/boe
• Drive digital transformation to further strengthen competitiveness
• Lower carbon intensity by ≥ 60% vs. 2010

CHEMICALS & MATERIALS

REFINING & MARKETING

• Leverage Borealis as platform for chemicals growth
• Realize integration synergies with Borealis of EUR ≥ 800 mn
• Strive for leadership in circular plastics economy
• Optimize asset utilization and maximize margin generation across the integrated value chain
• Reduce carbon footprint of our operations
• Become the leading gas integrated supplier with a strong market presence from Northwest to Southeast Europe
• Achieve 10% gas market share in Germany

18 | OMV Group, Q4 2020 Conference Call, February 4, 2021

BACKUP

OMV Aktiengesellschaft

Upstream - improved crude oil and gas prices, supported by production resumption in Libya

Clean Operating Result

EUR mn

+208

184

7

78

124

(24)

Q3/20	Market effects 1 Operational	DD&A 2	Q4/20
	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

Q4/20 vs. Q3/20

• Improved market environment
• • Realized oil price increased by 11%
  • Realized gas price increased by 27%
  • No realized hedging loss
  • Negative effect due to weaker USD/EUR
• Production of 472 kboe/d (+28 kboe/d)
• • Libya (+21 kboe/d)
  • Russia (+11 kboe/d)
  • Norway (+6 kboe/d)
  • Malaysia (-4 kboe/d)
  • New Zealand (-4 kboe/d)
• Higher sales volumes (+ 32 kboe/d) following production
• Production costs decreased to USD 6.2/boe (- 17%)

20 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Downstream - improved results supported by significantly higher contribution from Borealis

Clean CCS Operating Result		Q4/20 vs. Q3/20
EUR mn			 Better market environment
		+35		 Higher refining margin at USD 1.7/bbl (+95%)
			 Slightly lower ethylene/propylene net margin (-2%)
			369	 Operational performance
	334	24		 Utilization rate decreased from 90% to 81%
Borealis	59	92	103	 Lower total refined product sales by 7%
	162
			 Lower retail performance due to seasonality and impact of
Petchem	47			lockdowns
				 Slightly lower commercial fuels performance
Gas	78		43	 Almost stable gas result
				 ADNOC Refining & Trading: higher contribution due to
			79	slightly higher refining margin
Fuels &	150			 Go live of ADNOC Global Trading in December
Others 1			 Borealis (fully consolidated starting October 29, 2020)
			85
			 Improved Borouge performance; fertilizer business down

Q3/20	Market effects 2 Operational	Borealis	Q4/20
	performance

1. Including at-equity contribution from ADNOC Refining & Trading
2. Market effects defined as refining indicator margin and petrochemical margins; do not yet include result impact from Borealis crackers

21 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Operational KPIs

Hydrocarbon production			Refined product sales
kboe/d			mn t
505		472	5.17
444		4.68	4.37

Q4/19 Q3/20 Q4/20Q4/19 Q3/20 Q4/20

Hydrocarbon sales				Refinery utilization rate
kboe/d			%
477	422	454	98	90
					81
211	165	190	Oil & NGL
266			Natural gas
258	264

Retail sales

mn t

1.641.75

1.47

Q4/19 Q3/20 Q4/20

Natural gas sales

TWh

50.4

44.7

33.3

Q4/19

Q3/20

Q4/20

Q4/19

Q3/20

Q4/20

Q4/19

Q3/20

Q4/20

22 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Strong balance sheet

Balance sheet December 31, 2020 vs. September 30, 2020

EUR bn

							49.3				49.3
		41.1						Stockholders' equity	13.7	41.1
							and hybrid capital
							22.6
Tangible &															12.3
17.5					Non-controlling interests	6.2
intangible assets
											Trade payables	4.3		3.7
																2.6
Other	8.3			13.1		Bonds and other	11.9
non-current assets						interest-bearing debts	9.9
Inventories
1.8	1.5
Trade receivables				2.4
Cash	7.3			3.3			Provisions	6.3		5.7
						Liabilities associated
							2.9				0.7			0.6
								with assets held for sale
Assets held for sale		1.2				1.5		6.1		6.3
						Other liabilities
Other current assets	3.5			3.6
		Sep 30, 2020	Dec 31, 2020				Dec 31, 2020	Sep 30, 2020

• Deviations predominantly impacted by the acquisition of additional 39% shares in Borealis resulting in full consolidation, resulting in significant increases of:
• • Tangible & intangible assets
  • Other non-current assets: mainly due to at- equity accounted investments of Borealis - mainly Borouge - only partly offset by de- recognition of previous 36% share of Borealis; also including a significant increase of deferred tax assets due to tax synergies from the Borealis acquisition
  • Non-controllinginterest increase related to 25% share of Mubadala in Borealis
  • Bonds & other interest bearing debt
• Upstream: Reclassification of Kazakhstan entities & Sapura oil assets to held for sale

23 | OMV Group, Q4 2020 Conference Call, February 4, 2021

Sensitivities of the OMV Group results in 2021

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) 1	+150	+100
OMV indicator refining margin in Europe (USD +1/bbl)	+110	+85
Ethylene/propylene net margin (EUR +10/t) 1	+15	+10
EUR/USD (USD changes by USD +0.01)	+20	+15

1 Excluding Borealis

Note: Materially different Brent and FX levels (vs. current levels) would lead to different sensitivity results.

24 | OMV Capital Market Story, January 2021

OMV Aktiengesellschaft