UNCHANGED DIRECTION, ACCELERATED TRANSITION - AT A GLANCE - MOL Group
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UNCHANGED DIRECTION,
ACCELERATED TRANSITION
AT A GLANCE
2021
• WHO WE ARE
Since its privatization in the 1990s change has been the only constant in
MOL’s evolution. MOL was the frontrunner in regional consolidation in the
2000s and that is how it grew into an international oil and gas company
with market-leading positions in Central Eastern Europe.
Less than two decades later, in 2016, MOL was again ahead of the
curve when it envisaged the end of the fossil-fuel world and launched
its progressive 2030 strategy, embarking on a major business
transformation. Today, we are accelerating our transition to a low-carbon,
circular economic business model as a response to the unprecedented
pace of changes around us. MOL has a vision, the right strategy, strong
leadership as well as the financial means and market position to make
a step change again and move the company to the next level.
2 2 3
• WHO WE ARE
Delivering amidst
unprecedented challenges
”2020 was an unprecedented year with never seen challenges.
Doubling our efforts Not only did we preserve financial strength and stability under extreme
stress, but our operations were also running uninterruptedly,
on sustainability
we continued to be a reliable partner of all our customers and partners
and we proceeded with all our strategic investments. This was a real
testament to our resilience and the quality of our people."
"Sustainability and profitability are not mutually exclusive concepts.
You cannot be sustainable without generating revenues, nor can you József Molnár
Group Chief Executive Officer
be profitable without focusing on how those revenues are generated;
they go hand in hand. This has been evident for some time and will
Creating an
increasingly be clear to everyone in the future. We all want to live in a
better, safer and cleaner world; and for a better and more sustainable
entrepreneurial work
world we need to shift to a low-carbon, circular economic model. Our
strategy is the answer to that."
Zsolt Hernádi
Chairman and Chief Executive Officier
environment
"We are being pushed to adapt to global megatrends that are
increasingly complex and fast paced. We are constantly re-thinking
management models as we build teams that are adaptable and
innovative at their core, helping us to improve organizational agility and
efficiency. We try to create a work environment that is entrepreneurial,
where there is space to explore new ideas on how to get new products
and services faster to the market."
Oszkár Világi
Group Chief Innovation Officer
4 5
• WHO WE ARE
A leading integrated 1
24 EMPLOYER
BRAND AWARDS
Central European oil and gas in 2020
company "FAMILY
FRIENDLY
4 COMPANY"
prize in Hungary
2
3
ESG AWARD,
1ST PLACE
Budapest Stock Exchange
5
DOW JONES
SUSTAINABILITY
INDEX
Constituent fifth year in a row
1 EXPLORATION 47 ~25,000
4 PETROCHEMICALS nationalities employees
2 PRODUCTION AND PLASTIC RECYCLING
(INCLUDING EOR WITH CO2 INJECTION)
5 CONSUMER SERVICES 30+ USD ~6 BN
3 REFINING AND CO-PROCESSING (INCLUDING RETAIL AND MOBILITY) countries Market capitalization
(OF BIO FEEDSTOCK) (end-2020)
6 7
• MOL 2030+ STRATEGY
ACCELERATED LOW-CARBON TRANSITION
MOL 2030+: CONSUMER
profitably towards net-zero CONVENIENCE & MOBILTY
Our vision is to be a key player in the low-carbon circular
economy in Central and Eastern Europe. A highly efficient INTEGRATED CONSUMER PUBLIC TRANSPORT
company, providing sustainable materials for the MOBILITY PLATFORM GOODS RETAILING
economy, low-carbon fuels for mobility and convenient
products and services for the people on the move.
EV CHARGING
BIO- &
ALTERNATIVE SUSTAINABLE
FUELS PROFITABLY CONSUMER
PRODUCTS
LOW-CARBON E&P TOWARDS PLASTIC
WITH CCS NET-ZERO RECYCLING
SUSTAINABLE FUELS CIRCULAR ECONOMY
CO-PROCESSING
FUEL-TO-PETCHEM USED OIL WASTE UTILIZATION
COLLECTION & INTEGRATION
RENEWABLE RUBBER
POWER BITUMEN
8 9
• SUSTAINABILITY
Excellence through our people Safety is everyone’s responsibility
“We want to become the first choice of employees as creating „All of our employees and contractors have a responsibility
diverse and inclusive teams is not just the right thing to do, to maintain high HSE standards and management must
it is the most important source of our innovation. In parallel to take a leadership role in this. We should all return home
attracting new capabilities, we develop and retain talents so safely after our working day.”
that our knowledge paired with great collaboration can be the
core of driving our MOL Group 2030+ strategy. " Viktória Márton
Health, Safety & Environment Vice President
Zdravka Demeter Bubalo
Group Human Resources Senior Vice President
PEOPLE & COMMUNITIES TARGETS HEALTH & SAFETY TARGETS
• Diversity & Inclusion: increase women participation at all • Zero fatalities
levels, to 30% in managerial positions by 2022 • Achieve a Total Recordable Injury Rate below 1.0 by 2025
• Keep sustainable employee engagement level at min. 75% • Eliminate significant process safety events
• 50% of social investment on local communities • Zero major fires & explosion cases
• Increase the ratio of female colleagues to • Continuously increase safety awareness
min. 40% in Growww program • Health promotion programs focusing on sports, nutrition and ergonomics
•Private healthcare access in countries where statutory
healthcare is not sufficient
10 11
• SUSTAINABILITY
Reducing our carbon footprint Sector leading transparency
ESG RATINGS AND INDEX INCLUSIONS
ESG Risk Rating
25.3 Medium Risk
score of top
72/100 = 10% Negl Low Med. High Severe
CARBON DISCLOSURE CONSISTENT WITH:
• S ole Emerging European Company • 2 lowest risk among 45 global
nd
integrated Oil & Gas peers
LEADING DISCLOSURE PRACTICES FOR SEVERAL YEARS USING
ALIGNED WITH THE PARIS AGREEMENT AND EU GREEN DEAL
CLIMATE CHANGE & ENVIRONMENTAL TARGETS
REDUCING GROUP-LEVEL SCOPE INCREASE SHARE OF EU OTHER NON-CARBON
1 + 2 EMISSIONS BY 30% BY 2030 TAXONOMY ALIGNED CAPEX TO ENVIRONMENTAL TARGETS Bloomberg ESG Scores 69.7/100 MOL #3 in for its sub-industry (globally). Industry Average : 53.9
• Downstream to reduce • At least 50% of total by 2030 • N ew waste management and water
Scope 1 + 2 by 20% • And 100% by 2050 or earlier reservation strategy INTEGRITY & TRANSPARENCY TARGETS
• Consumer Services to • E nsure the biodiversity aspects during
reach net-zero all greenfield development in line with • Annual ethics training for 100% of employees
• pstream to reach net-zero
U
EU level Biodiversity Action Plan • Responsible procurement strategy until 2022
12 Scope 1: Emissions from sources that are owned or controlled by MOL Group.
Scope 2: Indirect emissions from consumption of purchased electricity, heat or steam.
13
• UPSTREAM Russia
Norway
Exploration 9 YEARS
reserve life
& Production UK
Kazakhstan
~2700
HU employees
HR RO
PORTFOLIO ELEMENTS
SPE 2P RESERVES (2020)
364 MMBOE Azerbaijan
80+ YEARS
Upstream experience
55% 38%
Iraq ~120 MBOEPD
production
Pakistan
Egypt
Crude oil Assets in
13 COUNTRIES
Natural gas
Condensate 7%
Oman
PRODUCTION (2020)
120 MBOEPD CARBON
NEUTRAL
BY 2030
in both Scope 1 + Scope 2
52% 48% emission
CEE
International
EXPLORATION
PRODUCTION Angola
14 15
• UPSTREAM
DELIVERING TODAY
What are we proud of in 2020? The best of Upstream in 2020
• Successful closing of ACG deal, the biggest acquisition in MOL Group history
• First operated, offshore discovery in Norway on PL820
• 10 discovery in the operated TAL Block in Pakistan
th
• 6 shallow gas discoveries in Hungary (100% success rate)
• 100% organic reserve replacement in Hungary
“We did not just stand our ground in these turbulent times,
but also achieved great successes across our portfolio.
We generated significant free cash flow even in a year with
extremely low oil and gas prices. The biggest exploration
highlight was the PL820 offshore discovery in Norway,
while we also successfully closed the ACG acquisition in 2020.”
Berislav Gašo Dr.
Executive Vice President, E&P
120 MBOEPD USD 0.7 BN USD 9/BOE SIMPLIFIED FREE
oil and gas production EBITDA CASH FLOW GENERATED
slightly above guidance Even at USD 42/bbl Brent oil price in 2020
2P reserves increased
by 94 MMboe to
STRONG HSE
PERFORMANCE
364 MMBOE No fatality, significant decrease
of HAZMAT road accidents
16 17
• UPSTREAM
Strong cash generation in 2021-25 E&P 2030 vision
and start investing in CCUS
GUIDANCE FOR 2021-25 BOOST CEE
SYNERGIES
AND MANAGE
~90-110 MBOEPD DECLINE
production guidance
Strong cost control, keeping
Unit Direct Production Cost at
USD ~6-8/BOE
FURTHER
USD ~1.9 BN IMPROVE QUALITY
CAPEX to be spent OF INTERNATIONAL
PORTFOLIO
Simplified free cash flow
USD ~1.8 BN
to be generated
@ USD 50/bbl Brent oil price
CCUS CARBON NEUTRAL
We will look for Carbon Capture, Utilization OPERATION UNTIL
and Storage (CCUS) opportunities to leverage 2030 (SCOPE 1 AND
our geological knowledge of the Pannonian
basin and become a leading player in CEE SCOPE 2)
18 19• DOWNSTREAM
Refining & Marketing, DOMESTIC AND CORE MARKETS
Petrochemicals
REFINERY
Czech Republic
PETROCHEMICAL PLANT
OIL PIPELINE
BRATISLAVA REFINERY
Slovakia PRODUCT DEPOT
GROUP REFINERY YIELD (2020)
SPC
Austria
34% DANUBE REFINERY MPC
51%
Hungary
Slovenia
Romania
Italy
6% 9% Croatia
Middle distillates RIJEKA REFINERY
Light-products
Other products
Heavy-products Serbia
Bosnia and
Herzegovina
3 2 assets in
380 KBPD
refineries petrochemical sites 11 countries refinery capacity
17 MTPA 1.4 MTPA 890 KTPA ~60,000 ~9,300 20% 1.4
sales of refined sales of petrochemicals steam cracker* wholesale employees CO2 emission reduction of Total Recordable
products products capacity customers Scope 1 and Scope 2 by 2030 Injury Rate
20 *Ethylene capacity 21• DOWNSTREAM
DELIVERING TODAY
What are we proud of in 2020? The best of Downstream in 2020
POLYOL PROJECT • Strategic partnership with Swiss • A new rubber bitumen plant
trading group Meraxis: supply started the production (with
75% of high-quality, post-consumer expanded capacity of 20 kt/y),
completion by the end of 2020 recycled materials to be blended recycling used tyres
”Despite all volatility and market disruption caused by the with MOL’s virgin polyolefin resins
pandemic in 2020, we kept our operations safe with improving
HSE performance at all production sites. With a dynamic crisis 6,769 tons
management, MOL Downstream successfully protected its of steel erected
people, we were able to ensure continuous operation of the
production assets and again proved to be a reliable partner and
supplier of all our customers in the CEE region.”
12,200 tons
of steel received on site
Gabriel Szabó
Executive Vice President, Downstream
38,313 m3
(91,951 tons) of
concrete poured
USD 740 MN Highest ever polymer sales 89.4% ~ 110 pieces
clean CCS EBIDTA 1171 KT satisfaction rate achieved of oversized equipment received
in 2020, 13% higher than in 2019 in group-wide customer on site (on road and on water)
satisfaction survey
Sales from own
production increased
Operational availability reached
BRAND NEW R&D CENTER WHAT IS POLYOL?
in 2020 92.9% in Refining and IN DANUBE REFINERY Polyol is a non-flammable, non-toxic liquid raw material used in
(serving as the base for the future development of polyol polyurethane foam production, which is used for example, in the
12,805 KT 95.9% in Petrochemicals products and polyurethane application technologies) automotive, construction, packaging and furniture industries.
22 23• DOWNSTREAM
Highly efficient, sustainable, Integrating circular economy
chemical-focused I N OUR FEEDSTOCK…
CRUDE
IN OUR OPERATIONS... IN OUR PRODUCT PORTFOLIO...
Our new, 2030+ DS vision is to be the (Central) European Champion Upstream Refinery Industry
in sustainable chemicals and powering mobility, we are driven by high CO2
efficiency and productivity, transforming in an intelligent way,
integrating circular business models, being powered by Renewable Sustainable fuels
electricity e.g. biofuel, hydrogen, PRODUCTS Homes
renewable energy and leaving minimal carbon footprint.” biogas
t
otp h
ri n
it y
o n ts w it
ct i v
WASTE B2B transportation
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Fo
rg y
du
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y& h
SUSTAINABLE
P ro
e
o
ig
En
on
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i m a a l)
a rb
la r g
icie y h
WE ARE THE Waste FEEDSTOCK Chemical sites
n
CHEMICALS
Ec
m i n d iti o n
ble
Re ered
C i r g ra t i
Eff en b
nc
(CENTRAL)
Service stations
ow
te
riv
cu
ra
ne
EUROPEAN
• In
• (T
• D
• P
CHAMPIONS IN… POWERING
Other
MOBILITLY Waste to chemicals
FINANCIAL TARGETS Recycling
2021-2025 2030 WASTE UTILIZATION
1.2+ BN USD 4.5 BN TARGETS 2030
EBITDA CAPEX
USD 150 MN Converting
100+ KT 100+ KT
efficiency improvement 1.8 MTPA advanced biofuel polymer recycling
of fuels to petchem
feedstock in 2 steps
24 25• CONSUMER SERVICES CZECH REPUBLIC
MARKET POSITION 2
MARKET SHARE 12%
Consumer Services:
SLOVAKIA
MARKET POSITION
MARKET SHARE
1
35% ROMANIA
6
brands
Retail & Mobility
MARKET POSITION 3
MARKET SHARE 15%
Czech Republic
HUNGARY
MARKET POSITION 1
~2000
Assets in MARKET SHARE 31% service stations
9 COUNTRIES
Slovakia
SLOVENIA
PLUGEE
~75,000
TOP3 MARKET POSITION
MARKET SHARE
3
11%
car sharing users
in 90% of the network PLUGEE
~200 EV CHARGERS
Hungary
across 6 countries
470+ TONS
used cooking oil collected PLUGEE Croatia Romania
~1000
Slovenia PLUGEE
at our stations/year
Fresh Corners
~4,500 Bosnia and
Herzegovina
employees Serbia
1,000,000+
retail transactions/day
CROATIA
MARKET POSITION 1
MARKET SHARE >50%
Montenegro
SERBIA CARBON
MARKET POSITION
MARKET SHARE
5
5% NEUTRAL
BIH BY 2030
MARKET POSITION 1 in both Scope 1 + Scope 2
MARKET SHARE 14% emission
MONTENEGRO
MARKET POSITION 3
MARKET SHARE 15%
Market shares are based on internal calculation.
26 27• CONSUMER SERVICES
DELIVERING TODAY
What are we proud of in 2020? The best of
Consumer Services in 2020
"Despite all the external challenges, we managed to grow
further in 2020 and closed the year with another record-
high EBITDA. With constantly developing our product
range and services, we are on the right track to achieve
our 2030+ goal to become a true consumer goods
retailer and a complex mobility service provider."
Péter Ratatics
Executive Vice President, Consumer Services
Besides our best-in-class coffee we
welcome our customers with top-quality
french-type hot-dog across the region
freshcorner.hu 10 MN+
PIECES SOLD
• Windshield washer production shifted FOCUS ON PREMIUM FUEL
towards hand and surface sanitizers (MOL Hygi)
• To support our customers in the protection • Record-high share (20% penetration) FRESH CORNERS GROWTH (NR. OF SITES) AND PENETRATION (%)
against COVID-19 and to donate to e.g. • Launch of EVOTech formula
hopsitals and schools • Renewed communication via seasonal activities
2016 248 13%
447 24%
USD 510 MN NEARLY 130 MN
2017
2018 687 36%
Launch of new digital loyalty
clean CCS EBITDA passenger km sold within rewards program to support more 2019 877 46%
mobility services personalised customers’ journeys 2020 955 49%
28 29• CONSUMER SERVICES
Consumer Services EBITDA Sustainability goals
will exceed USD 700 mn by 2025
TOTAL FUEL AND NON-FUEL GROSS MARGIN (USD MN) TO GROW AGAIN BY AROUND 50% IN THE NEXT FIVE YEARS • Using renewable energy • Carbon offsetting • Conscious waste • Recyclable materials
to cover SeS consumption initiatives management
~50%
~1,450
35%
49%
955
28% 20%
640
21% 20%
6%
NON-FUEL
MARGIN
PREMIUM 72% 52% 45%
MARGIN
MAINGRADE
MARGIN
2016 2020 2025
AMBITIOUS 2025 GROWTH TARGETS IN CONSUMER SERVICES
reaching
USD 700+ MN boosting
USD ~2.3 BN CARBON NEUTRAL
35% EBITDA
GROCERY/GASTRO simplified free cash BY 2030
non-fuel margin sales and margins flow in 2021-2025 in both Scope 1 + Scope 2 emission
contribution
30 31• FINANCIALS
Low-carbon transition requires USD 2.05 BN
clean CCS EBITDA in 2020
STRATEGIC CAPEX IN 2021-25
~1.0
Investments in new, low-carbon,
circular economy businesses
significant investments USD 0.6 BN Pre-FID Downstream projects, primarily
~1.5 aiming at fuel-to-chemicals transformation
simplified free cash flow in 2020
"2020 was a real test to our financial strength, flexibility and
resilience. Although our earnings declined, the balance sheet
Already running Downstream strategic
remained robust and our free cash flow was positive in every ~1.0 projects (e.g. Polyol, Rijeka delayed coker)
business segments as a result of our fast and timely reaction
to the crisis. This gives us a strong base and confidence that 2021-25E
we can continue to fully fund both our accelerated transition NET DEBT TO EBITDA (X)
and the dividend to our shareholders." 1.61
2.0
József Simola 1.5 0.97
0.82
0.74
Group Chief Financial Officer 0.65
1.0 0.41
0.5
0.0
2015 2016 2017 2018 2019 2020
EXTERNAL ENVIRONMENT VS. MOL CLEAN CCS EBITDA (USD MN) MOL Group Refining Margin (1)
Brent crude price (1)
Integrated Petchem Margin (1)
DIVIDEND PER SHARE IN 2015-2021 (HUF)
3000 100%
150
2000
47.5
70% 100 42.5
1000 95 ~100*
85
78
71
50 61
0 40%
2015 2016 2017 2018 2019 2020
0
0
Upstream Gas Midstream & Other
2015 2016 2017 2018 2019 2020 2021 E
Downstream Consumer services
•
TThe values of the Refinery Margin, Petrochemicals Margin, and Brent crude price are measured against their respective maximum values (100%) in the period of
(1)
*Based on the Board proposal and the expected number of treasury Instead of the dividends the
2015 – 2020. 100% equals to the following values: MOL Group Refining Margin: USD 6.5/bbl; MOL Petrochemical Margin EUR 679.7/t; Brent crude price: USD 71/bbl shares on the record date; 2021 DPS still to be approved by the AGM. Board launched an up to
5% share buyback in 2020
32 33• DIGITALIZATION
Digital transformation
“MOL Group will keep building the three pillars of digitalization:
improving our customer’s experience, efficiency for our
operations and to enable the success of these two: keep
improving the everyday digital life of our employees”
Péter Néz
IT and Digital Senior Vice President
DIGITALIZATION IS A JOURNEY
First, we were planting the seeds by enabling
our employees to drive the digital agenda with
advanced tools, devices and processes. We will
keep focusing on leveraging new technologies
such as big data, augmented intelligence and
advance analytics tools. As a result, we will deliver
a detailed understanding of our customers'
needs and behaviours for our Consumer
Services business and predictive maintenance
and production optimization methods for our
Upstream and Downstream businesses.
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