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.

PLEASE NOTE THAT THE ONLINE MEETING WILL BE RECORDED. IF YOU DO NOT WANT TO APPEAR ON THE RECORDED VIDEO, PLEASE SWITCH OFF YOUR CAMERA AND MICROPHONE. PRIVACY NOTICE: HTTPS://PRIVACY.MICROSOFT.COM/HUHU/PRIVACYSTATEMENT#MAINNOTICETOENDUSERSMODULE

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."

2

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

3

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

4

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.

6

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

7

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

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

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.