OMV strategy update: Profitable growth

• OMV is hosting a Capital Markets Day and Media Summit in Istanbul to present an update on its strategy
• OMV’s portfolio will be sharpened significantly to become more focused and simplified 
• Strategy builds on growing OMV’s upstream portfolio, on expanding its integrated gas business and on restructuring the oil downstream segment
• Performance program targets significant profitability increase

On September 21 – 22, 2011, OMV is hosting a Capital Markets Day and Media Summit in Istanbul to inform about the results of an extensive strategy review initiated by its CEO Gerhard Roiss and undertaken in the course of the last months. OMV aims to become more focused and simplified with the emphasis on growing in upstream, on integrated gas and on a restructured oil downstream business. A performance program will increase profitability and improve competitiveness.

Gerhard Roiss, CEO and Chairman of the OMV Executive Board, stated: “We aim to be a focused, integrated oil and gas company with improved profitability and strong growth in upstream. Exploration and production of oil and gas offers significant growth potentials and attractive returns. An integrated gas business from the production site to European markets will strengthen our role in the European gas business. As a consequence, we will gradually shift the portfolio from Refining and Marketing to Exploration and Production and to Gas and Power. While Refining and Marketing will continue to be an important business segment for OMV, the exposure to the segment will be adjusted reflecting the challenging oil downstream environment. I strongly believe that with the strategy presented today, we are striking the right balance between building on past achievements of the Group while at the same time heralding a new period of focused, more integrated growth.”< /p>

The main cornerstones of OMV’s strategy to achieve profitable growth are:

Grow upstream: Exploration and Production (E&P) is the growth driver within OMV’s portfolio. OMV will direct approximately two-thirds of future investments towards exploration and production of oil and gas. Growth will come through a variety of activities: The foundation will be an increased performance of the existing upstream portfolio. The speed of resource maturation from discovery to production will be further increased. Targeted acquisitions will expand our production and will add development options. A renewed exploration portfolio and increased exploration activities will lay grounds for a healthy upstream portfolio and long-term growth. Our regional focus will be the Caspian region, Middle East and Africa.

Integrated gas: Gas will be the primary source of energy in Europe. Other than the world market product oil, gas needs regional integration from the gas field to the markets via various logistic networks. OMV will expand its position along the entire gas value chain. Gas-fired power plants will be used to add a new and attractive outlet for our equity gas and will complement our gas sales and trading business. New equity gas positions in the Caspian region, Middle East and Africa from the E&P business segment will be developed in alignment with the Gas and Power market strategy. Nabucco will remain a key project for OMV, offering long-term gas supply for Europe. OMV is ideally positioned to capture the value of the Nabucco gas pipeline along its route through OMV’s core markets Turkey and Romania to the European gas turntable in Baumgarten in Austria.

Restructured oil downstream: Reflecting contracting oil product demand in Europe, OMV will adjust its exposure to the Refining and Marketing (R&M) business segment and targets divestments in the magnitude of up to EUR 1 bn until 2014 by decreasing refining capacity and marketing assets. Furthermore, OMV will change the product yield of its refineries towards market demand for middle distillates and petrochemical feedstock, especially propylene. R&M will also increase its asset optimization activities via enhanced asset-backed trading capabilities. Special emphasis will be put on effective management of capital and cost efficiency.

Improved performance across the entire OMV Group: To support the path to profitable growth, OMV will launch an ambitious performance improvement program to increase ROACE by 2% points by 2014. The program will target margin improvements, cost reduction and capital management.

OMV Aktiengesellschaft
With Group sales of EUR 23.32 bn and a workforce of 31,398 employees in 2010, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. In Exploration and Production, OMV is active in two core countries Romania and Austria and holds a balanced international portfolio. OMV had proven oil and gas reserves of approximately 1.15 bn boe as of year-end 2010 and a production of around 290,000 boe/d in 6m/2011. In Gas and Power, OMV sold approximately 18 bcm of gas in 2010. In Refining and Marketing, OMV has an annual refining capacity of 22.3 mn t and as of the end of June 2011 approximately 4,700 filling stations in 13 countries including Turkey. In Austria, OMV operates a 2,000 km long gas pipeline network with a marketed capacity of around 89 bcm in 2010. With a trading volume of around 34 bcm in 2010, OMV’s gas trading platform, the Central European Gas Hub, is amongst the most important hubs in Continental Europe. OMV further strengthened its position through the ownership of a 97% stake in Petrol Ofisi, Turkey’s leading company in the retail and commercial business.

Sustainability
OMV is a signatory to the UN Global Compact, and an active supporter to the values enshrined in its Code of Conduct. These include a strong sense of responsibility towards the social and natural environment, especially in economically weak regions. OMV continuously addresses economic, environmental and social issues related to its business in a responsible manner. The company reports on its activities in a sustainability report in accordance with the Global Reporting Initiative Guidelines.