SHAPE TOMORROW STRATEGY REVIEW
CAPITAL MARKET UPDATE
March 2024
DISCLAIMER
"THIS PRESENTATION AND THE ASSOCIATED SLIDES AND DISCUSSION CONTAIN FORWARD -LOOKING STATEMENTS. THESE STATEMENTS ARE NATURALLY SUBJECT TO UNCERTAINTY AND CHANGES IN CIRCUMSTANCES. THOSE FORWARD-LOOKING STATEMENTS MAY INCLUDE, BUT ARE NOT LIMITED TO, THOSE REGARDING CAPITAL EMPLOYED, CAPITAL EXPENDITURE, CASH FLOWS, COSTS, SAVINGS, DEBT, DEMAND, DEPRECIATION, DISPOSALS, DIVIDENDS , EARNINGS, EFFICIENCY, GEARING, GROWTH, IMPROVEMENTS, INVESTMENTS, MARGINS, PERFORMANCE, PRICES, PRODUCTION, PRODUCTIVITY, PROFITS, RESE RVES, RETURNS, SALES, SHARE BUY BACKS, SPECIAL AND EXCEPTIONAL ITEMS, STRATEGY, SYNERGIES, TAX RATES, TRENDS, VALUE, VOLUMES, AND T HE EFFECTS OF MOL MERGER AND ACQUISITION ACTIVITIES. THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER FACTORS, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THESE FORWARD -LOOKING STATEMENTS. THESE RISKS, UNCERTAINTIES AND OTHER FACTORS INCLUDE, BUT ARE NOT LIMITED TO DEVELOPMENTS IN GOVERNMENT REGULATIONS, FOREIGN EXCHANGE RATE S, CRUDE OIL AND GAS PRICES, CRACK SPREADS, POLITICAL STABILITY, ECONOMIC GROWTH AND THE COMPLETION OF ON -GOING TRANSACTIONS. MANY OF THESE FACTORS ARE BEYOND THE COMPANY'S ABILITY TO CONTROL OR PREDICT. GIVEN THESE AND OTHER UNCERTAINTIES, YOU ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON ANY OF THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN OR OTHERWISE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO RELEASE PUBLICLY ANY REVISIONS TO THESE FORWARD-LOOKING STATEMENTS (WHICH SPEAK ONLY AS OF THE DATE HEREOF) TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE HEREOF OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS, EXCEPT AS MAYBE REQUIRED UNDER APPLICABLE SECURITIES LAWS.
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STATEMENTS AND DATA CONTAINED IN THIS PRESENTATION AND THE ASSOCIATED SLIDES AND DISCUSSIONS, WHICH RELATE TO THE PERFORMANCE OF MOL IN THIS AND FUTURE YEARS, REPRESENT PLANS, TARGETS OR PROJECTIONS."
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MOL 2030+: TRANSFORMATION TO SHAPE TOMORROW
KEY DIRECTIONS UNCHANGED WITH REFINED TRANSITION PATH
2016 | 2021 | 2024 |
MOL 2030 Enter Tomorrow | Shape Tomorrow 2030+ | Shape Tomorrow |
Key long-term challenges of the | Updated strategy with additional | More refined view on key |
industry correctly identified | focus on green transition | directions |
Forerunner in approach to | Fuel-to-petchem,low-carbon | Commitment to achieve transition |
diversify away from fossil fuels | investments prioritised | goals reiterated |
Sustainability targets introduced | Increased focus on sustainability | |
and circular economy | ||
Addressing energy supply security | ||
concerns |
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ON PATH TO DELIVER OUR TARGETS
E&P
DOWNSTREAM
CONSUMER
SERVICES
WASTE
MANAGEMENT
SUSTAINABILITY
INTERIM TARGETS
SIMPLIFIED FREE CASH FLOW: AT
LEAST USD 1.8 BN IN 2021-2025
MANAGE DECLINE IN CEE
OPPORTUNISTIC AND ACTIVE
MANAGEMENT OF INT'L PORTFOLIO
LEADING POSITION IN
TRADITIONAL DS;
USD 1.2BN EBITDA IN 2025
EFFICIENCY IMPROVEMENT
FUEL-TO-PETCHEM
TRANSFORMATION
EBITDA 2025: USD 700MN+
STRENGTHENING CEE LEADERSHIP
IN FUEL RETAILING
RISING NON-FUEL CONTRIBUTION
INTEGRATING WASTE
GROUP SCOPE 1 AND 2 GHG TO
DECREASE BY 30% BY 2030
TAXONOMY-ALIGNED CAPEX TO REACH 50% OF TOTAL BY 2030
* Including equity consolidated assets, excluding UK & Norway
STATUS
USD 3.7 BN SFCF DELIVERED IN 2021-2023*
CEE YOY BASELINE DECLINE KEPT AT 1% P.A. IN 2021-2023
HIGHGRADING THE INTERNATIONAL PORTFOLIO WITH SALE OF UK
AND ANGOLAN ASSETS
USD 1.7 MN AVG. EBITDA IN 2021-2023; MARKET POSITION RETAINED
ACROSS ALL WHOLESALE MARKETS, EXTENDED IN SLO & POL
USD 150 MN EFFICIENCY IMPROVEMENT IDENTIFIED,
EXECUTION UNDERWAY
KEY INVESTMENTS ON TRACK: MPC POLYOL (200+ KTPA), MPC METATHESIS (100 KTPA PROPYLENE). SLOVNAFT PP3 UNIT (+33 KTPA PROPYLENE) , DR MSA AIMING TO DOUBLE CURRENT CAPACITY
2025 TARGET PRACTICALLY MET, USD 695MN EBITDA ACHIEVED IN 2023
INCREASED EBITDA TARGET DEFINED FOR 2030: USD 1,000MN
NETWORK SIZE INCREASED TO 2,431 BY 2023YE SUPPORTED BY
ACQUISITIONS IN POLAND AND SLOVENIA
34% SHARE IN 2023 (OF TOTAL MARGIN), UP FROM 24% IN 2016
MOL WON WASTE MANAGEMENT CONCESSION FOR HUNGARY AND
STARTED THE OPERATION IN JULY 2023
10% SCOPE 1 AND 2 LIKE-FOR-LIKE GHG REDUCTION ACHIEVED UNTIL
2022 COMPARED TO 2019
4.8% ACHIEVED IN 2022; 50% GOAL FOR 2030 DOUBTFUL IN LIGHT OF MORE STRINGENT CRITERIA FOR TAXONOMY ALIGNED INVESTMENTS
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KEY MESSAGES
NAVIGATING THE COMPLEXITIES OF THE ENERGY TRANSITION
CHALLENGES AND OPPORTUNITIES IN A SHIFTING LANDSCAPE
AFFORDABILITY
Sustainability regulations: ambitious goals, but high uncertainty regarding markets & technologies
Geopolitical tensions: need for supply diversification & improved European competitiveness
Customer expectations: predictable & affordable energy supply
SUSTAINABILITY | SUPPLY SECURITY |
- The energy transition poses both challenges and opportunities, requiring a nuanced approach to balance sustainability, energy security, and economic competitiveness.
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ANSWERS TO SHORT AND LONG-TERM CHALLENGES OF THE INDUSTRY
KEY FOCUS AREAS OF 2021 STRATEGY REMAIN, EXTRA EMPHASIS ON SUPPLY SECURITY AND GREEN TRANSFORMATION
INVEST
INTO TRANSFORMATION
Petchem
Focus of further development shifted from large-scale projects to medium size investments until 2030
Sustainable DS activities
Emphasis on sought-after 'green' alternatives with biogas, hydrogen and recycling opportunities
Renewable energy generation
Increased focus due to strengthened decarbonisation goals and compliance requirements
Waste management
Providing additional raw materials to the economy while achieving EU-levelregulatory requirements
MAINTAINING
SECURITY OF SUPPLY
E&P
Maintain a healthy, diversified portfolio with low break- even & superb cash generation capability while leveraging subsurface expertise in geothermal, lithium & CCS
Fuels
Focus on building up further logistic capabilities for crude diversification and to exploit fuel market potential
Retail
Keep both the fuel and the non-fuelbusiness on the growth path leveraging on the combination of strong credentials and stable market outlook
Mobility
Delayed ramp-up of alternative fuel in the CEE shift the full scale-upof EV-chargingsegment
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MOL GROUP'S TRANSFORMATION IS
UNDERPINNED BY HEALTHY FUNDAMENTALS
MOL IS THE DOMINANT O&G PLAYER OF THE CEE REGION
9
TRANSITION PATH BASED ON RESILIENT MOL GROWTH MODEL
HIGH-GROWTH AND PROFITABLE CEE CORE OPERATIONS AND INTERNATIONAL E&P ENABLE SMOOTH DIVERSIFICATION AWAY FROM FOSSIL FUELS
DS
E&P | UPSTREAM CEE |
Partly satisfies the HC need for Downstream and/or generates stable cash flow for the Group
REFINING AND MARKETING
Significant value added with highly efficient units securing the fuel supply
ESG | LOW CARBON CIRCULAR |
E&P | |
Already started low-carbon circular projects | |
DS | to enter into waste management, biogas |
production, green hydrogen, solar and other | |
means of energy production. Continued | |
expansion brings efficiency, self-reliance, and | |
compliance with EU sustainability-related |
regulations
CS
GM
of CEE
CONSUMER SERVICES
Mobility provider with 2,400 service stations across CEE to capture the consumer end of the O&G value chain
GAS MIDSTREAM
Regulated business (asset base and return) generating cash for high- return investments in other segments
E&P
CS | |
OPERATIONAL | ESG |
MODEL SECURES | |
TRANSITION WITH | |
GROWTH AND | DS |
RESILIENCE |
INTERNATIONAL UPSTREAM
Continued presence in Int'l upstream projects to generate cash and provide hedge for the other segments of the Group
DIGITISED RETAILER
Expansion in alternative fuel, car-sharing,non-fuel and highly digitised services allow for tackling transition
PETROCHEMICALS
Skewing downstream production towards petrochemicals also serves as a diversification from fossil fuels
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MOL plc published this content on 13 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 March 2024 18:01:08 UTC.