MOL Group - Annual Report 2015 - Key Achievements and Outlook

MOL delivered USD 2.5bn (HUF 692bn) Clean CCS EBITDA in 2015, 13% higher than in 2014, and significantly outperforming its USD 2.2bn target
Net operating cash flow (USD 2.11bn) exceeded organic CAPEX (USD 1.26bn) by USD 850m, implying very strong free-cash flow generation and leading to an even more robust balance sheet (Net debt/EBITDA at a mere 0.7x) in 2015
MOL booked sizeable impairment charges of HUF 504bn (USD 1.7bn), mostly driven by the low oil price environment
Downstream was the earnings engine of the group in 2015 with its best performance of USD 1.65bn Clean CCS EBITDA

Upstream production grew by 7% in 2015 to 104 mboepd
Hungarian and Croatian crude output rose by 5% and 20% year-on-year, respectively
Next Downstream Program delivery was ahead of plans (USD 210mn EBITDA contribution in 2015)
New butadiene plant launched commercial production in Hungary
Captive retail market continued to expand further with the acquisition of the ENI networks in Hungary and Slovenia
Strong motor fuel demand growth (5%) in the core CEE market was a tailwind in 2015
A substantial year-on-year decrease (-23%) in injury rate (TRIR) for own staff in 2015
RobecoSAM Sustainability Yearbook inclusion means MOL is now top 15% in global oil & gas industry based on its sustainability performance

To maintain a strong balance sheet and ample liquidity
Resilient integrated business model to absorb external shocks, generate strong cash flows
To generate at least USD 2.0bn group CCS EBITDA in 2016 even under a USD 35-50/bbl oil price scenario (and at USD 4.0-5.0/bbl Group Refinery margin and at EUR 400-500/t Integrated Petchem margin)
Organic capex plan for 2016 cut to up to USD 1.3bn from „up to USD 1.5bn” (at USD 35-50/bbl oil price)
Sustainable free cash flow generation; its operating cash flows should continue to be able to cover both investments and dividends to shareholders
Upstream: aiming for self-funding operations at USD 35/bbl after substantial cost-side adjustment
Downstream: continue to be boosted internally through efficiency and growth; Next Downstream Program to partly offset potential macro normalization
Cautious, opportunistic view on M&A
To continue to increase distribution to shareholders, aiming for simpler shareholder structure
To implement „Sustainability Plan 2020”