Finance OMV’s value-driven finance strategy aims to enable growth, drive performance, and reward shareholders. The strategy is supported by a solid financial framework focused on returns and cash flow. OMV aims to increase the clean CCS Operating Result, clean CCS net income attributable to stockholders as well as the operating cash flow, before net working capital effects. The Group strives for a ROACE of at least 12% while maintaining a strong balance sheet and a strong investment credit rating. OMV also continues to target attractive shareholder returns. In 2020, OMV increased its shareholding in Borealis to 75%. The cash out for the transaction amounted to EUR 3.9 bn. In an extremely challenging macroeconomic environment due to the COVID-19 pandemic, OMV managed to successfully access the financial markets and secure funding. This, together with stringent cost and capital expenditure reduction, enabled the Group to pay the entire amount in full at closing. OMV closed the year with a gearing ratio, excluding leases, of 41%. Finance – 2020 strategic achievements Achieved a positive organic free cash flow after dividends of EUR 0.4 bn Continued to adhere to its dividend policy and left the dividend equal to the previous year’s level, at EUR 1.75 per share Successfully accessed the financial markets to secure funding of EUR 4.5 bn, including senior and hybrid bonds, at attractive prices Swiftly reacted to the macroeconomic environment and reduced spending in 2020: reduced organic investments by around 30% to around EUR 1.7 bn excluding Borealis, cut costs by more than EUR 300 mn (including exploration expenditure reduction) Capital and cost discipline remain a priority. Thus, the Group plans for an organic capital expenditure between EUR 2.5–3 bn per year, including Borealis. For 2021, OMV expects total CAPEX of EUR 2.7 bn. In the short term, OMV is focusing on deleveraging the balance sheet, to reach a gearing ratio, excluding leases, of around 30%, by the end of 2021. In this respect, the Group is successfully implementing a EUR 2 bn divestment program by the end of 2021. In addition, OMV re-affirms its progressive dividend policy, aiming to increase dividends every year, or to at least maintain dividends at the respective previous year’s level. OMV’s capital allocation priorities are as follows: Organic CAPEX Debt reduction Progressive dividend policy Finance – 2025 strategic cornerstones ROACE target of at least 12% Positive free cash flow after dividends Grow clean CCS net income attributable to stockholders Increase clean CCS Operating Result to EUR ≥5 bn by 2025 Increase operating cash flow excluding net working capital effects to EUR ≥5 bn by 2025 Long-term gearing ratio, excluding leases, of ≤30% Competitive shareholder return with a progressive dividend policy Maintain a strong investment-grade credit rating 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 Clean CCS net income attributable to stockholders Net income attributable to stockholders, adjusted for the after tax effect of special items and CCS schließen ROACE Return On Average Capital Employed; NOPAT divided by average capital employed expressed as a percentage schließen EUR Euro schließen gearing ratio Net debt divided by equity, expressed as a percentage schließen EUR Euro schließen CAPEX Capital Expenditure 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 net income Net operating profit or loss after interest and tax Strategic Cornerstones – OMV set to become stronger and more valuableSustainability 102-45 gri-id41:102-45
