Finance

2030 strategic priorities

• Generate operating cash flow excluding net working capital effects of EUR ~6 bn by 2025 and EUR ≥7 bn by 2030
• Target a ROACE ≥12% in the mid- and long term
• Ensure sound capital allocation priorities: organic CAPEX, dividend, inorganic growth, and deleveraging*Depending on the leverage ratio of OMV, the order between inorganic growth and deleveraging can reverse.
• Maintain strong balance sheet, with a mid/long-term leverage ratio below 30%
• Continuously deliver on the progressive dividend policy

The Group’s financial strategy aims to increase the company’s value and shareholder return, while ensuring a robust balance sheet, along with a financially resilient portfolio that thrives in a low-carbon world and has attractive growth potential well into the future. The value-driven finance strategy operates on a clear framework for enabling long-term profitable and resilient growth and aims to achieve a ROACE of at least 12%, positive free cash flow after dividends, a strong balance sheet, with a mid/long-term leverage ratio of below 30%, a Clean CCS Operating Result of at least EUR 5 bn by 2025 and EUR 6 bn by 2030, increasing clean CCS net income attributable to shareholders, operating cash flow excluding net working capital of around EUR 6 bn by 2025 and at least EUR 7 bn by 2030, as well as a progressive dividend policy.

When building its financial plan, OMV set a sound capital allocation policy: first, investing in its organic portfolio; second, paying attractive dividends; third, pursuing inorganic spending for an accelerated transformation; and fourth, deleveraging*Depending on the leverage ratio of OMV, the order between inorganic growth and deleveraging can reverse.. In its capital allocation, the Group focuses on selecting the most competitive and resilient projects. The defined investment criteria include hurdle rates and payback periods by business reflecting respective risk and return profiles, as well as testing projects for their resilience and break-even versus relevant market KPIs.

To achieve its strategic goal, OMV plans a yearly organic CAPEX around EUR 3.5 bn for the period from 2022 to 2030. Overall, the Group is allocating more than EUR 13 bn, in total, for 2022–2030 to achieve its ambitious decarbonization targets. In addition, OMV will consider inorganic growth in areas of strategic importance. However, this will depend on the Group’s indebtedness headroom. Moreover, the Group’s portfolio of assets can provide options through divestments to accelerate strategy execution when attractive acquisition targets in targeted growth areas become available.

The Group’s strategy, supported by disciplined capital allocation, will enable OMV to generate increasing and resilient cash flows and higher earnings. These solid financials ensure a strong balance sheet for the Group. In its financial framework, OMV has made a significant commitment to ensuring a robust balance sheet and a investment-grade credit rating. The Company aims to achieve a leverage ratio of below 30% for mid- and long term. Depending on portfolio measures, the leverage ratio can exceed 30%, however this will then be followed by a deleveraging program to ensure the balance sheet is strengthened.

During the strategy period, OMV will continue to deliver on its progressive dividend policy. The Group therefore aims to increase the dividends every year, or to at least maintain dividends at the respective previous year’s level. This underlines the Group’s commitment to its progressive dividend policy.