Financial Review of the Year (XLSX:) Download Key financials in EUR mn (unless otherwise stated) 2020 2019 Δ Sales revenues 1 in EUR mn 16,550 23,461 (29)% Clean CCS Operating Result 2 in EUR mn 1,686 3,536 (52)% Clean Operating Result Upstream 2 in EUR mn 145 1,951 (93)% Clean CCS Operating Result Downstream 2 in EUR mn 1,514 1,677 (10)% Clean Operating Result Corporate and Other 2 in EUR mn (47) (67) 30% Consolidation: Elimination of inter-segmental profits in EUR mn 74 (25) n.m. Clean CCS Group tax rate in % 32 38 (6) Clean CCS net income 2 in EUR mn 1,026 2,121 (52)% Clean CCS net income attributable to stockholders 2, 3 in EUR mn 679 1,624 (58)% Clean CCS EPS 2 in EUR 2.08 4.97 (58)% Special items 4 in EUR mn (220) (64) n.m. thereof Upstream in EUR mn (1,282) (71) n.m. thereof Downstream in EUR mn 1,071 31 n.m. thereof Corporate and Other in EUR mn (9) (24) n.m. CCS effects: inventory holding gains/(losses) in EUR mn (416) 110 n.m. Operating Result Group in EUR mn 1,050 3,582 (71)% Operating Result Upstream in EUR mn (1,137) 1,879 n.m. Operating Result Downstream in EUR mn 2,160 1,847 17% Operating Result Corporate and Other in EUR mn (56) (91) 38% Consolidation: Elimination of inter-segmental profits in EUR mn 83 (54) n.m. Net financial result in EUR mn (175) (129) (35)% Group tax rate in % (69) 38 n.m. Net income in EUR mn 1,478 2,147 (31)% Net income attributable to stockholders 3 in EUR mn 1,258 1,678 (25)% Earnings Per Share (EPS) in EUR 3.85 5.14 (25)% Cash flow from operating activities in EUR mn 3,137 4,056 (23)% Free cash flow before dividends in EUR mn (2,811) (583) n.m. Free cash flow after dividends in EUR mn (3,690) (1,441) (156)% Organic Free cash flow before dividends 5 in EUR mn 1,273 2,119 (40)% Organic Free cash flow after dividends in EUR mn 394 1,261 (69)% Gearing ratio exluding leases in % 41 22 19 Leverage ratio in % 32 22 10 Capital expenditure 6 in EUR mn 6,048 4,916 23% Organic capital expenditure 7 in EUR mn 1,884 2,251 (16)% Clean CCS ROACE in % 5 11 (6) ROACE in % 8 11 (4) 1 Sales revenues excluding petroleum excise tax 2 Adjusted for special items and CCS effects; further information can be found in Note 4 – Segment Reporting – of the Consolidated Financial Statements 3 After deducting net income attributable to hybrid capital owners and net income attributable to non-controlling interests 4 The disclosure of special items is considered appropriate in order to facilitate the analysis of the ordinary business performance. To reflect comparable figures, certain items affecting the result are added back or deducted. Special items from equity-accounted companies and temporary hedging effects for material transactions are included. 5 Organic free cash flow before dividends is cash flow from operating activities less cash flow from investing activities excluding disposals and material inorganic cash flow components (e.g., acquisitions) 6 Capital expenditure including acquisitions 7 Organic capital expenditure is defined as capital expenditure including capitalized Exploration and Appraisal expenditure and excluding acquisitions and contingent considerations. Notes to Key Financials Clean CCS Operating Result (XLSX:) Download Special items and CCS effect In EUR mn 2020 2019 Δ Clean CCS Operating Result 1 1,686 3,536 (52)% Special items (220) (64) n.m. thereof: Personnel restructuring (39) (34) (16)% thereof: Unscheduled depreciation / write-ups (1,084) (39) n.m. thereof: Asset disposal 19 5 n.m. thereof: Other 885 4 n.m. CCS effects: inventory holding gains/(losses) (416) 110 n.m. Operating Result Group 1,050 3,582 (71)% 1 Adjusted for special items and CCS effects Sales revenues decreased by 29% to EUR 16,550 mn, driven by the overall lower global commodity price environment and fallen sales volumes for most products, mainly caused by the effects of the COVID-19 pandemic and partially compensated by higher natural gas sales volumes in the Downstream segment. The clean CCS Operating Result declined considerably from EUR 3,536 mn in 2019 to EUR 1,686 mn. The contribution from Upstream amounted to EUR 145 mn (2019: EUR 1,951 mn). In Downstream, the clean CCS Operating Result stood at EUR 1,514 mn (2019: EUR 1,677 mn). The clean CCS Group tax rate in 2020 was 32% (2019: 38%), reflecting the lower contribution from Upstream, in particular from countries with high tax regimes. The clean CCS net income went down to EUR 1,026 mn (2019: EUR 2,121 mn). The clean CCS net income attributable to stockholders amounted to EUR 679 mn (2019: EUR 1,624 mn). Clean CCS Earnings Per Share were EUR 2.08 (2019: EUR 4.97). Net special items of EUR (220) mn were recorded in 2020 (2019: EUR (64) mn). In Upstream, net special items in 2020 amounted to EUR (1,282) mn (2019: EUR (71) mn) and were mainly related to the impairments triggered by OMV’s revision of its long-term price assumptions for Brent crude oil. The Downstream net special items amounting to EUR 1,071 mn in 2020 (2019: EUR 31 mn) mainly included a step-up in the valuation of the previously owned 36% share in Borealis. In Corporate and Other, net special items amounted to EUR (9) mn in 2020 (2019: EUR (24) mn). CCS effects of EUR (416) mn (2019: EUR 110 mn) were recognized in 2020. The OMV Group’s reported Operating Result decreased substantially to EUR 1,050 mn (2019: EUR 3,582 mn). The net financial result decreased to EUR (175) mn (2019: EUR (129) mn). The Group tax rate was significantly affected by income coming from tax synergies from the acquisition of additional shares in Borealis that led to a write-up of deferred tax assets in the Austrian tax group (among other effects). Net income thus amounted to EUR 1,478 mn (2019: EUR 2,147 mn). The net income attributable to stockholders was EUR 1,258 mn compared to EUR 1,678 mn in 2019. Earnings Per Share decreased to EUR 3.85 compared to EUR 5.14 in 2019. More details on special items and CCS effects can be found in Note 4 – Segment Reporting – of the Consolidated Financial Statements. schließen sales revenues Sales excluding petroleum excise tax schließen EUR Euro schließen Clean CCS Operating Result Operating Result adjusted for special items and CCS effects. Group clean CCS Operating Result is calculated by adding the clean CCS Operating Result of Downstream Oil, the clean Operating Result of theother segments and the reported consolidation effect adjusted for changes in valuation allowances, in case the net realizable value of the inventory is lower than ist cost schließen CCS/CCS effects/inventory holding gains/(losses) Current Cost of Supply; inventory holding gains and losses represent the difference between the cost of sales calculated using the current cost of supply and the cost of sales calculated using the weighted average method after adjusting for any changes in valuation allowances in case the net realizable value of the inventory is lower than its cost. In volatile energy markets, measurement of the costs of petroleum products sold based on historical values (e.g. weighted average cost) can have distorting effects on reported results (Operating Result, net income, etc.). The amount disclosed as CCS effect represents the difference between the charge to the income statement for inventory on a weighted average basis (adjusted for the change in valuation allowances related to net realizable value) and the charge based on the current cost of supply. The current cost of supply is calculated monthly using data from supply and production systems at the Downstream Oil level schließen EUR Euro schließen net income Net operating profit or loss after interest and tax schließen Clean CCS net income attributable to stockholders Net income attributable to stockholders, adjusted for the after tax effect of special items and CCS schließen Clean CCS EPS Clean CCS Earnings Per Share is calculated as clean CCS net income attributable to stockholders divided by weighted number of shares schließen Special items Special items are expenses and income reflected in the financial statements that are disclosed separately, as they are not part of underlying ordinary business operations. They are being disclosed separately in order to enable investors to better understand and evaluate OMV Group’s reported financial performance schließen mn Million schließen mn Million OMV Group Business YearGearing Ratio Excluding Leases and Leverage Ratio 102-45 gri-id41:102-45
